Argentina Intensifies Crypto Tax Crackdown: Nearly 4,000 Investors Targeted

Argentina's AFIP Targets Crypto Investors in Tax Evasion Crackdown

Argentina's tax authority, AFIP, has intensified its efforts to combat crypto-related tax evasion, issuing instructional letters to 3,997 individuals who used cryptocurrencies in 2020. These letters require taxpayers to update their property tax affidavits to include ownership of crypto assets.

The move follows the discovery of significant discrepancies between reported income and amounts generated from crypto transactions. AFIP estimates that unreported revenue from defaulters exceeds $1 billion.

How AFIP is Tracking Crypto Investors

AFIP has leveraged data from digital exchanges and payment service providers to identify Bitcoin investors. A recently approved law mandates these platforms to report user activity when certain thresholds are met. Specifically, reporting is required when:

• A user’s total income or spending reaches at least $30,000.
• Virtual transactions exceed $200,000.

This data has enabled AFIP to monitor and address tax non-compliance in the crypto space effectively.

Debate Over Crypto Taxation in Argentina

While AFIP asserts that crypto holdings must be declared under the Tax on Personal Assets, some argue that the legal framework for taxing digital currencies remains unclear. Critics, including Germán Nlhoul of the YouTube channel Criptocontador, point out that no explicit legislation currently taxes crypto assets.

This ongoing debate highlights the challenges of regulating and taxing digital assets in a rapidly evolving financial landscape.