A bill was approved by the Argentinian Senate that allows the government to tax assets not declared in other countries owned by residents of Argentina. It includes stocks, bonds, and even cryptos. This legistlation is intended to raise funds for Argentina’s $45 billion outstanding debt to the International Monetary Fund.
The Argentinian Senate approves the Asset Tax Bill
A new bill has been approved by the Argentinian Senate that allows for taxation of assets owned in other countries. According to the approved text, all types of assets, real estate, stock, cryptocurrency and other assets, will be taxed by the government.
This policy stipulates that the Economy Ministry will manage these funds directly. Depending upon the amount of assets and their ownership, Argentinian citizens may have to pay as much as 50% for these assets. This fund will remain active until Argentina repays its $45 billion debt to the International Monetary Fund.
According to local media, the Chamber of Deputies will need to approve the bill now, as it is less likely to pass.
Most people have criticized many aspects of the proposed legislation, and the reaction has been negative in most cases. People in the cryptocurrency sector are worried that the project includes crypto assets. Kim Grauer, Research’s director, thinks there is a good reason for this. She says:
The country has an overall cryptocurrency market valued at nearly $70 billion, well above Venezuela’s $28.3 billion, only second to Brazil in the region.
The government might have the liquidity it needs to finance the IMF loan payments. The project also faces criticisms regarding the use of foreign banks to retain the money and the way the government plans to make international agreements to obtain information on crypto-holders.
Sebastián M. Domínguez, Of SDC Tax Consultants, stated:
There is an extensive list of countries reporting accounts of Argentinians abroad, known as ‘cooperators’. This includes countries like El Salvador and Seychelles.
In this sense, the Argentinian Tax Agency announced last month its support for a global report system that will aid tax watchdogs to avoid cryptocurrency-related evasion at a worldwide level.
How do you feel about the new law passed by the Argentinian Senate. Leave a comment below.
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