Law Project Presented in Argentinian Senate Proposes to Tax Undeclared Cryptocurrency Held Outside the Country

A new law project presented in the Argentinian Senate is seeking to start a fund to pay for part of the debt the country has with the International Monetary Fund (IMF). The project, which is being pushed by members of the ruling party, would establish that Argentinian citizens have to pay taxes for certain assets held outside the country, including cryptocurrencies.

A new law project presented in the Argentinian senate proposes a way of paying the debt of more than $44 billion that the country has with the International Monetary Fund (IMF). The law, called “National Fund For The Cancellation Of The Debt With The IMF,” implements a system that, if approved, will tax several key elements that Argentinians possess in foreign lands.

According to the project, all kinds of properties outside of the country would be taxed, including any amount of fiat currencies, properties, stocks, credits, and cryptocurrencies, constituting an emergency input coming from these undeclared goods outside of the country. The payment of these taxes will have to be in foreign currency (U.S. dollars), deposited directly to the accounts of the Argentinian tax authority (AFIP).

Argentinian citizens will have to pay a certain percentage of the value of these funds depending on the way and time periods in which they declare their properties and cryptocurrency to the tax authority. Article number nine in the law proposal declares:

The contribution to be paid by the taxpayers indicated in Article 6 will be the one that results from applying, on all the assets object of this law, the rate of twenty percent (20%).

This rate applies to all taxpayers declaring these assets voluntarily in the six months after the approval of the law. After this period ends, the rate applied by the law is increased to 35% of the value of the goods, stocks, and cryptocurrency held outside the country. In other circumstances, this rate can climb as high as 50%.

The penalties proposed for not complying with the duties declared in the law include prison time and fines. To have sufficient data for its application, the figure of a collaborator, which points to possible offenders with evidence, is also defined in the project. Collaborators receive a part of the funds collected by the tax authority, which can be as high as 30% depending on the importance of the case examined.

What do you think about the new proposal of taxing undeclared goods and crypto presented in the Argentinian senate? Tell us in the comments section below.