How to Pay Taxes on Bitcoin Gains in Argentina: Your Complete 2024 Guide

As Bitcoin adoption surges in Argentina amid economic volatility, understanding your tax obligations is crucial. This guide breaks down exactly how to report and pay taxes on cryptocurrency gains to Argentina’s Federal Administration of Public Revenue (AFIP), helping you avoid penalties while staying compliant.

## Understanding Argentina’s Bitcoin Tax Framework
Argentina treats Bitcoin as a “moveable asset” rather than currency for tax purposes. This means:

* **Capital Gains Tax (Impuesto a las Ganancias)**: Applies when selling Bitcoin at a profit
* **Personal Assets Tax (Impuesto sobre los Bienes Personales)**: Annual wealth tax on holdings exceeding ARS 6 million (≈USD 6,600)
* **No VAT (IVA)**: Cryptocurrency transactions are exempt from Value Added Tax

Tax residency determines your obligations: Residents pay taxes on worldwide crypto assets, while non-residents only pay on Argentine-sourced gains.

## When Bitcoin Transactions Trigger Taxes
You must report profits in these scenarios:

1. **Selling Bitcoin for fiat currency** (ARS/USD)
2. **Trading Bitcoin for other cryptocurrencies** (e.g., BTC to ETH)
3. **Using Bitcoin to purchase goods/services** if value increased since acquisition
4. **Earning Bitcoin** through mining, staking, or rewards

Note: Transferring between your own wallets isn’t taxable. Holding without selling only impacts the wealth tax if above thresholds.

## Step-by-Step: Calculating Your Taxable Gains
Follow this formula for each transaction:

`Sale Price – Acquisition Cost – Allowable Expenses = Taxable Gain`

**Key components**:
– **Acquisition Cost**: Original purchase price + transaction fees
– **Allowable Expenses**: Wallet fees, exchange commissions
– **Sale Price**: Market value at disposal time

*Example*: Buying 0.1 BTC for ARS 500,000 (with ARS 5,000 fees) and selling for ARS 800,000 (ARS 8,000 fees):
Taxable Gain = (800,000 – 8,000) – (500,000 + 5,000) = ARS 287,000

## Current Tax Rates and Deadlines

### Capital Gains Tax
– **Residents**: Progressive rates from 5% to 35% based on income bracket
– **Non-residents**: Flat 15% rate

### Personal Assets Tax (Wealth Tax)
– 0.5% to 1.25% on net assets exceeding ARS 6 million
– Applies to global holdings if tax resident

**Critical Deadlines**:
– Capital Gains: Reported monthly via Form 572
– Wealth Tax: Annual filing by December 31

## How to Report Bitcoin Gains to AFIP
Follow these steps:

1. **Register wallets/exchanges** in AFIP’s “Virtual Wallet Registry”
2. **Track all transactions** with dates, amounts, and counterparties
3. **Calculate gains/losses** using FIFO (First-In-First-Out) method
4. **File Form 572** monthly for income tax
5. **Declare holdings** in annual wealth tax return

Tip: Use AFIP’s “Monotributo” system if earning under ARS 1.3 million annually.

## Penalties for Non-Compliance
Failure to report may result in:

* Fines up to 200% of evaded tax
* Asset freezing
* Criminal charges for severe cases
* Interest on overdue payments (≈40% APR)

AFIP actively tracks crypto transactions through bank linkages and international data sharing agreements (CRS).

## Pro Tips for Argentine Crypto Investors

* **Use Dedicated Software**: Tools like Koinly or CriptoActivo simplify tracking
* **Keep 5-Year Records**: Save purchase receipts, exchange statements, and wallet addresses
* **Consult Professionals**: Hire a “contador público” (CPA) specializing in crypto
* **Leverage Tax Loss Harvesting**: Offset gains with losses from other investments
* **Monitor Thresholds**: Wealth tax applies only above ARS 6 million net assets

## Frequently Asked Questions

### Is Bitcoin legal in Argentina?
Yes, Bitcoin is fully legal. The Central Bank prohibits financial institutions from dealing in crypto, but individuals can freely trade and hold it.

### Do I pay taxes if I hold Bitcoin without selling?
Only if your total assets exceed ARS 6 million, triggering the annual wealth tax. Unrealized gains aren’t taxed under income tax.

### How are Bitcoin-to-Bitcoin trades taxed?
Trading BTC for other cryptocurrencies (e.g., ETH) is a taxable event. You must calculate gains in ARS based on market values at trade execution.

### Can I deduct Bitcoin losses?
Yes, capital losses reduce taxable gains. Unused losses can be carried forward 5 years. Document losses with transaction evidence.

### What if I received Bitcoin as payment?
Freelancers/businesses must report it as income at ARS market value when received, plus pay gains if later sold at higher prices.

Staying compliant protects you from penalties while contributing to Argentina’s formal economy. Always verify requirements with AFIP’s official portal or a qualified tax advisor as regulations evolve.