How to Report NFT Profit in Argentina: Complete Tax Guide 2024

Understanding NFT Taxation in Argentina

As Non-Fungible Tokens (NFTs) explode in popularity, Argentinian investors face crucial tax obligations. The Argentine Tax Authority (AFIP) treats NFT profits as taxable income under existing laws. Whether you’re an artist selling digital art or an investor flipping NFTs, understanding how to report NFT profit in Argentina is essential to avoid penalties. This guide breaks down everything from tax categories to filing procedures.

In Argentina, NFT transactions fall under two main tax categories:

• Income Tax (Ganancias): Applies to profits from NFT sales or trades. Calculated as selling price minus acquisition cost and allowable expenses.
• Personal Assets Tax (Bienes Personales): May apply if your total global assets (including NFTs) exceed ARS 6 million (~USD 6,700 as of 2024).

Step-by-Step Guide to Reporting NFT Profits

Follow this process to accurately declare your NFT earnings:

1. Track All Transactions: Record dates, purchase prices (in ARS equivalent), sale prices, gas fees, and wallet addresses. Use crypto tax software like Koinly or Cointracking for accuracy.
2. Convert to Argentine Pesos: Calculate values using the AFIP-approved exchange rate on transaction dates (available via BCRA).
3. Calculate Taxable Profit: Subtract acquisition costs and eligible expenses (platform fees, minting costs) from sale proceeds.
4. File Monthly Earnings: Report profits monthly via AFIP’s “Sistema de Régimen de Información” if you qualify as a frequent trader.
5. Annual Tax Return: Declare net profits in your annual “Impuesto a las Ganancias” return (Form 710). Deadline is typically June 30th.
6. Pay Tax Obligations: Settle dues via AFIP’s online portal using debit/credit cards or bank transfers.

Key Documentation Required

Prepare these records to support your NFT tax filings:

• Blockchain transaction IDs (TxHash)
• Exchange statements showing fiat conversions
• Receipts for minting/transaction fees
• Proof of ownership (wallet addresses)
• Sales contracts (if applicable)

Common NFT Tax Reporting Mistakes to Avoid

Steer clear of these critical errors:

• Ignoring Small Transactions: AFIP requires reporting ALL profits, even under ARS 100,000.
• Using Incorrect Exchange Rates: Always use BCRA’s official rate on transaction dates.
• Overlooking Gas Fees: These reduce taxable income but are often forgotten.
• Mixing Personal and NFT Wallets: Maintain separate wallets for clearer audit trails.
• Missing Deadlines: Monthly filers face 2-5% monthly penalties for late submissions.

Frequently Asked Questions (FAQ)

Do I pay taxes if I hold NFTs without selling?

No. Taxation only triggers upon sale, trade, or exchange. However, high-value holdings may contribute to Personal Assets Tax calculations.

How are NFT losses handled?

Losses can offset other capital gains within the same fiscal year. Unused losses carry forward for up to 5 years.

Are international NFT platforms reportable?

Yes. Argentinians must declare worldwide income. Foreign platforms like OpenSea or Rarible transactions are fully taxable.

What if I receive NFTs as payment for freelance work?

This constitutes barter income. Report the NFT’s market value in ARS as ordinary income upon receipt.

Can AFIP track my NFT wallet?

Potentially. Through international agreements like CRS, AFIP accesses crypto exchange data. Always assume transactions are traceable.

Staying Compliant in 2024

With AFIP increasing crypto surveillance, meticulous NFT profit reporting is non-negotiable. Consult a certified Argentine tax professional specializing in digital assets for complex cases. Keep detailed records, use official exchange rates, and file promptly to avoid fines up to 200% of evaded tax. As regulations evolve, subscribe to AFIP’s newsletter for updates impacting NFT investors.