Argentina’s government has proposed a new measure that would encourage its residents to disclose their cryptocurrency holdings in exchange for lower tax rates.
Tax incentives may soon motivate Argentines to disclose their crypto holdings. According to local news sources, Argentina’s Ministry of Economy – the country’s economic policy manager – has submitted a new crypto bill intended at combating money laundering and encouraging its residents to reveal their crypto holdings by enticing them with lower tax rates. Economy Minister Sergio Massa proposed the “Externalization of Argentine Savings” draft bill to combat money laundering.
The bill requires cryptocurrency holders to provide the Argentine government with an affidavit indicating the location of their holdings. Those who report their holdings are eligible for tax benefits.
Under the draft bill, persons who voluntarily reveal their holdings within 90 days of the law’s implementation would be subject to a 2.5% tax on capital gains on their holdings. The rate gradually rises every 90 days until it reaches 15%, Argentina’s regular capital gains tax rate.
The proposed measure would require domestic and foreign holdings to be lodged in Argentina-approved banks or foreign banks supervised by the country’s central bank or securities commission.
The bill also urges Argentines to declare any financial assets subject to capital gains, such as fiat currencies, stocks, and shares, as well as real estate.
According to recent reports, the Argentine Senate is debating a measure that would control how people and organizations promote cryptocurrency. The project’s goal is to educate customers about the risks of investing in cryptocurrency.
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