Countries around the world are now waking up to how the crypto space could play a pivotal role in their wider economic life as a number of them are now introducing taxes for the space.
The latest country to implement a tax regime for the space is Argentina whose authorities released an official notice on November 16 that will see crypto exchanges with bank accounts in the country charge 0.6% tax on every transaction.
Argentinas new crypto tax regime
According to details of the new tax rule, it would be subjected to the countrys cheque tax rule meaning all crypto-related transactions which could either be buying or selling made via a crypto exchange in the country would pay a 0.6% tax.
Previously, Argentina had equated crypto transactions to be the same thing as cash transactions which made them free of any tax obligations. However, despite this exemption, crypto transactions were generally taxed under capital gains tax the country had introduced in 2017.
“The exemptions provided for in this decree and in other regulations of a similar nature will not be applicable in those cases in which the movements of funds are linked to the purchase, sale, exchange, intermediation and/or any other operation on crypto assets, cryptocurrencies, digital coins, or similar instruments, in the terms defined by the applicable regulations,” the report reads in part.
Crypto tax applications around the world
With Argentinas new law, it joins a number of countries that are now taxing their citizens for transacting in crypto.
The United States government recently signed the infrastructure bill which includes a tax reporting provision that applies to the digital assets space.
We also reported that South Korea is implementing a 20% tax on gains of over 2.5million won ($2,116) made via crypto activities. The country, however, revealed that NFTs are exempted from this taxation.
Apart from these countries, places like El Salvador, Portugal, Switzerland and a few others are choice destinations for crypto investors due to their crypto-friendly tax regimes.
For more blockchain news, please download WikiBit- the Global Blockchain Regulatory Inquiry APP.