Buenos Aires plans to tax crypto mining activities in 2023

Buenos Aires, a province in Argentina, will begin taxing cryptocurrency mining activities and staking, possibly in 2023. A new proposal introduced by the government states that cryptocurrency mining will be a taxable activity, and will charge 4% of the income generated after the amendment. One tax law.

making regulatory moves

Buenos Aires has approved a project that will add cryptocurrency mining to the list of taxable activities for next year. Notably, the province is making strides in the crypto industry, including the first launch of interconnected blockchain hubs.

according to a document Introduced by Governor Alex Kisilof, the tax paid would be 4% of the estimated income generated by mining and processing cryptocurrencies.

The document states that individuals will pay taxes to the provincial government and will not be subject to other taxes established by the national government. The only reason why this activity would be subject to this tax is because the hardware used for its operation is located in the province where it is being operated.

question about tax bill

There are two main reasons why analysts are not convinced about the implementation of the new tax rule in the Argentine province. One is the definition of what equipment will be taxed. If the government-approved documentation only refers to proof-of-work hardware, such as graphic cards and ASIC miners, only these will be considered for tax. On the other hand, if the computers that are running the staking nodes are involved in this hardware, the staking may also be taxed.

Marcos Zocaro, an accountant in Argentina, has also raised Question about the price of cryptocurrencies. According to official documents, the tax will be applicable only on the “current or official value” of these properties. However, there is a need to clarify how this value will be calculated after the mining process is complete or after the tax period is over.

Specifically, the implementation of the tax regime for cryptocurrency mining will begin in January. However, there are still some details that still need to be clarified.

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