The Argentine Senate has approved a bill that would allow the government to tax unauthorized assets held by the country’s citizens in foreign countries. This includes stocks, property, bonds, and even cryptocurrencies. The purpose of the legislation would be to raise more money to pay off Argentina’s $45 billion debt with the International Monetary Fund (IMF).
Argentina’s Senate approved an asset tax bill
The Argentine Senate has agreed A new bill would allow the government to tax assets held by citizens in foreign countries. The approved text specifies that the government will tax all types of assets that have not previously been declared to the tax authorities, including real estate, stocks, cryptocurrency, and any assets of economic value.
The policy states that these funds collected 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 remain in effect until Argentina repays its $45 billion debt to the International Monetary Fund.
According to local media, the bill will now have to be approved by the House of Representatives, as the chances of its passage are less.
Reaction in the country has been mostly negative, with many people criticizing many aspects proposed by the legislation. The project mentions crypto-assets as part of its scope, and this is worrying people in the sector. Kim Grauer, director of research, believes there is a good reason for this. According to her:
The country has a total cryptocurrency market valued at around $70 billion, which is significantly higher than the $28.3 billion in Venezuela, and is second only to Brazil in the region.
This may provide the government with the liquidity needed to finance the IMF loan payments. Other criticisms of the project relate to the establishment of foreign banks as holding agents for this money, and how the government will use international treaties to obtain information about holders of cryptocurrency.
Sebastian M. Dominguez, SDC Tax Adviser, stated:
There is an extensive list of countries that have reported the accounts of Argentines abroad, known as “collaborators”. These are more than 120 countries, including crypto-friendly countries such as Malta, Seychelles, the Virgin Islands, Liechtenstein, Gibraltar and El Salvador.
In this sense, the Argentine Tax Agency last month announced its support for a global reporting system that will help tax regulators avoid evasion associated with cryptocurrencies on a global scale.
What do you think of the new bill passed by the Argentine Senate? Tell us in the comments section below.
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