Argentinian Senate Passes Bill That Would Tax Assets Held in Foreign Countries, Including Crypto – Regulation Bitcoin News

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The Argentine Senate has approved a bill that would allow the government to tax undeclared assets held abroad by citizens of the country. This includes stocks, property, bonds and even cryptocurrencies. The goal of the legislation would be to raise more funds to pay off the $ 45 billion debt Argentina has with the International Monetary Fund (IMF).

Activity Tax Act Approved by the Argentine Senate

The Argentine Senate has approved a new bill that would allow the government to tax assets held by citizens abroad. The approved text determines that the government will tax all assets that have not previously been declared to the tax authorities, including real estate, stocks, cryptocurrency and any assets with economic value.

The policy states that these funds raised will be managed directly by the Ministry of Economy. Depending on the time period and the goods owned, if approved, Argentine citizens will have to pay up to 50% on these assets. The fund, which will be denominated in dollars, will be active until Argentina pays off its debt to the International Monetary Fund (IMF), of about $ 45 billion.

The bill will have to be approved now by the House of Representatives, where it has less chance of being passed, according to local media.

Argentines React

The reaction in the country has been largely negative, with many people criticizing many of the aspects proposed by the legislation. The project mentions crypto assets as part of its scope, and this worries people in the sector. Kim Grauer, director of research, thinks there is a good reason for this. According to her:

The country has a global cryptocurrency market valued at nearly $ 70 billion, well above Venezuela’s $ 28.3 billion, just second only to Brazil in the region.

This could provide the government with the required liquidity to finance payments to the IMF loan. Other criticisms of the project relate to the establishment of foreign banks as withholding agents for this money, and how the government will use international treaties to obtain information on crypto-holders.

Sebastián M. Domínguez, of SDC Tax Consultants, stated:

There is an extensive list of countries reporting reports of Argentines abroad, known as “collaborators”. These are more than 120 nations, including crypto-friendly countries such as Malta, the Seychelles, the Virgin Islands, Liechtenstein, Gibraltar and El Salvador.

In this regard, the Argentine Tax Agency announced last month its support for a global reporting system that will help taxpayers avoid cryptocurrency-related evasion worldwide.

What do you think of this new bill approved by the Argentine Senate? Tell us in the comments section below.

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Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price hike occurred in December 2017. Having a computer engineering background, living in Venezuela, and being affected by the cryptocurrency boom on a social level, he offers a different point of view. on crypto success and how it helps the unbanked and underserved.

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