Without waiting for action from the government, the authorities of the Argentine province of Córdoba have made the decision to introduce a local turnover tax on their own. kryptowalutami. However, the new regulations were not adopted too enthusiastically.
Cordoba authorities levy a tax on cryptocurrencies
According to recent reports, the authorities of the province of Cordoba located in the central part of Argentina, voted to adopt a law on taxation of activities related to trading in cryptocurrencies.
The new regulations impose a rate from 4% to 6,5% on gross income for each transaction using digital currencies. Tax all entities trading them will be covered, both individual traders, exchanges and cryptocurrency brokers.
On the other hand, all those, both individuals and companies that accept payments in digital currency, will be required to pay a tax of 0,25% of this income. It is possible that similar rules will soon be introduced also in other regions of the country.
The new regulations, which will enter into force soon, are not the first tax initiative implemented by the Córdoba authorities. Let us recall that in 2017, this province imposed a 15% flat-rate tax on annual revenues related to cryptocurrency trading.
Cryptocurrency environment concerned
The tax regulations introduced by the Cordoba authorities do not arouse too much enthusiasm among industry experts. In their opinion, the implementation of the new regulations will not only be very difficult, but also discourage young entrepreneurs from running their businesses in the provinces. Consequently, the number of investments in this sector may also decrease, and the cryptocurrencies themselves can be traded in the so-called gray area. Tax specialists also point out one significant discrepancy. Well, the new regulations established by the Córdoba authorities refer to "digital assets", without making a distinction between cryptocurrencies, security tokens or stablecoiny. Meanwhile, these are completely different resources that should not be treated as identical with each other.