- The application of this new tax system will begin in January 2023.
- The taxes would be paid directly to the provincial government.
Argentine authorities in the province of Buenos Aires have given the green light to a proposal. That would make cryptocurrency mining a taxable sector beginning in 2023. 4% of all profits made from “Processing and validation services for crypto assets and/or cryptocurrency transactions (crypto asset and/or cryptocurrency mining),” as stated in a document presented by the province’s governor, Alex Kicillof.
The taxes would be paid directly to the provincial government. Rather than the federal government of Argentina, and they would stand on their own. The document elaborates that the tax will only be levied if the hardware required to implement the activity is physically present in the province. While the application of this new tax system will begin in January. There are still certain details that have still to be worked out.
Several Aspects Unclear
Miners’ concerns regarding this tax’s implementation center on two primary points. The first concerns the identification of taxable gear. ASIC miners and graphics cards are the only hardware types that will be evaluated for these taxes. If the authorized papers solely mention proof-of-work hardware. However, staking might be subject to taxation if computers operating staking nodes are included in this category of gear.
Many have concerns about the proposed tax rate on mined (or staked) cryptocurrencies. The document states that cryptocurrencies would be taxed at their “official or current value in place,” but it does not specify the source of these values, which might fluctuate depending on the exchange used. There’s also no telling whether this value will be determined at the time of cryptocurrency mining or when the tax year concludes.
