Tucumán joins the Córdoba initiative to apply taxes to the sale of cryptocurrencies. The legislative branch of the Argentine provinces added cryptocurrencies as Gross Income.
Citizens must now declare their ownership of cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) in Córdoba and Tucumán. Besides reporting the funds they keep in those assets to the government, they will also have to pay a tax on them as with Gross Income.
Córdoba was the first Argentine province to take the initiative in this policy in early 2021, and Tucumán joined it this month. The legislative branch of the latter recently decided to modify Law No. 5,121 to apply a tax to the purchase and sale of cryptocurrencies or tokens.
They added to article 223 the clarification that the trade of digital currencies is part of that subsection. This point appears within currency exchange and public securities operations.
Argentina Has Taxes on Bitcoin and the US Dollar
The head of the Tucumán Finance and Budget Commission, Juan Ruiz Olivares, explained the same tax applies to foreign currency exchange. In other words, the law includes cryptocurrencies like any other currency.
In addition to paying taxes on the trade of US dollars, citizens will now have to do so for cryptocurrencies like Bitcoin and Ether. However, this law is only provincial in scope instead of national, so it only applies in Tucumán.
This policy has also been in force in Córdoba for some months, but the law not only requires paying taxes on the sale of cryptocurrencies. It also demands that people or businesses that charge for their services or products in cryptocurrencies pay the tax.
There is a growing interest in taxing cryptocurrencies not only in Argentina but also internationally. The increased use of these assets has led officials to seek ways to regulate the funds of those who own them. For example, the Mexican attorney general’s office recommended applying a 20% tax to Bitcoin and altcoins.
Bitcoin and Other Cryptocurrencies Help Solve Global Problems
Cryptocurrencies can help the tourism industry in many ways, such as remote payments free of extra costs. El Zonte beach, in El Salvador, was a tourist attraction for being the first to accept Bitcoin. After that, it became the epicenter of the adoption that the law enacted in that Central American country regulates.
Besides that, the actors of the crypto community also seek to attract the population towards other exciting developments. For example, they promote the use of non-fungible tokens for artisans to monetize their creations. Although some of that training receive municipal and provincial support, the interest of the State is not yet deep.
There are still many steps to take, but the movement is advancing, and the community is struggling to show there are no limits. They believe that no mountain, valley, lake or glacier will stop the adoption of cryptocurrencies worldwide.
The increasingly prominent role of Bitcoin in the economy does not go unnoticed by lawmakers. The Argentine provinces Córdoba and Tucumán have decided to include cryptocurrencies as gross income that must have income taxes.
By Alexander Salazar
