There are now 3 provinces in Argentina that tax bitcoin – CVBJ

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Highlights:

La Pampa will charge gross income to all business activities with digital currencies.

As in other provinces, there are still some unspecified legal issues.

Based on certain changes to its tax code, the Argentine province of La Pampa has approved the collection of gross income tax for activities related to virtual currencies. In this way, along with Cordoba and Tucumán, it is the third province to tax the marketing of bitcoin (BTC) and other cryptocurrencies.

The changes it proposes The Tax Law 2022 first affects article 183 of the General Tax Code, which details the activities carried out by Gross Income when they are carried out “regularly and for consideration”. Thus, article 52 of the law determines to add to the General Tax Code a paragraph by which the tax applies to “the provision of services of any kind, directly or indirectly linked to transactions linked to digital currencies”.

With “digital currencies”, the text refers to virtual currencies, cryptocurrencies, crypto assets, tokens, stablecoins and “other concepts which, by their nature and / or their characteristics, constitute and / or involve a digital representation of the value that can be traded ”. Given this definition, non-fungible or NFT tokens could also be considered for the new standard.

In addition, article 53 of the Tax Law 2022 establishes an amendment to article 193 of the General Tax Code, which specifies that the gross income base “will be made up of the difference between the purchase and sale prices. For certain activities. Among those mentioned, the addition of “transactions of purchase and sale of currencies or digital currencies” is determined.

The two articles of La Pampa’s Tax Law 2022 that affect bitcoin operations in the province. Source: DGR La Pampa.

As detailed by local media, the 2022 tax law was approved at an extraordinary session of the Pampas legislature at the end of December. The project had the support of the ruling party, but the opposition voted against it. During the same session, the province’s budget for 2022 was also approved.

A new province that taxes bitcoin in Argentina

With this new legislative change, La Pampa – located west of the province of Buenos Aires and south of Córdoba, in the central region of the country – joins two other provinces that had previously included the commercial exchange of cryptocurrencies in their Tax on gross income.

The first of these had been Cordoba, in March 2021, and later Tucumán was added, as CriptoNoticias reported in November of the same year. As an official from Tucumán explained at the time, such a tax was applied to bitcoin and other cryptocurrencies in the same way as what happens with the exchange of currencies, such as the dollar. In other words, crypto assets have been put on par with international currencies.

Regarding these projects, some questions remain unspecified, such as the equivalence that arises between bitcoin, which has no underlying assets, and stablecoins, which do. On the other hand, as an expert explained during the approval of the first project of this type, in Cordoba, it is also not known which exchange rate will be taken into account to define the taxable minimum that is applied for the collection of gross income.

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