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A country with high inflation has introduced taxes on cryptocurrencies! What does this mean for the country?

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Argentina taxes cryptocurrency inflation
source: www.shutterstock.com/PoringStudio

Argentina, a high inflation South American country, has imposed mandatory taxes on all cryptomen and digital asset operations. The Digital Money Act also includes the so-called “digital money control tax“.

Presidential Decree 796/2021 lists changes to the Competitiveness Act, which introduced the so-called “check tax” in 2001. The document was personally approved and signed by the president of the second largest South American country, Alberto Fernandez, the head of the cabinet, Juan Manuel, and the Minister of Economy, Martin Guzman.

What will be the rules?

People who profit from buying or selling cryptocurrencies will have to pay tax at 21%. They will also pay taxes on the profits associated with the difference between buying and selling.

If the operation is or has been carried out in the territory of the Argentine Republic, the tax authority will treat the financial operation as revenue from an Argentinian source. Otherwise, it will be categorized as a foreign source of income. Thus, there will be a difference between cryptocurrencies purchased or even mined in the country and those who “came” to the country from abroad.

The cryptoburses, of course, received no exceptions. You will even have to pay up to double the tax. VAT on the provision of services and income tax derived from the commissions they receive from their clients.

As a justification for approving the cryptocurrency tax, the government states that as a result of the COVID-19 pandemic, the central bank needed to create a new operational framework. in order to extend electronic transfers.

Official regulation of crypto financial operations in Argentina is expected to encourage people to enter the cryptoworld, but not everyone can attract it.

It should be recalled that cryptocurrencies in Argentina could significantly and investors help against high inflation that moves in tens of percent!

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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