Argentina’s Senate has approved a bill that would allow the government to tax undeclared assets held abroad by citizens of the country. This includes stocks, real estate, bonds, and even cryptocurrencies. The aim of the legislation is to raise more money to pay off Argentina’s $45 billion debt to the International Monetary Fund (IMF).
Argentine Senate passes property tax bill
The Argentine Senate has officially recognized A new bill that would allow the government to tax citizens’ assets held in foreign countries. The text of approval establishes that the government will tax all types of assets that have not been previously reported to tax authorities, including real estate, stocks, cryptocurrencies, 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, Argentine citizens will have to pay up to 50% for these assets if approved. The fund will be denominated in U.S. dollars until Argentina repays about $45 billion in debt to the International Monetary Fund.
According to local media reports, the bill must now be approved by the House of Representatives, where it has a smaller chance of passing.
The country’s reaction has been mostly negative, with many criticizing many aspects of the legislation proposed. The project has crypto assets as part of its scope, which has people in the industry concerned. Research director Kim Grauer sees this for good reason. According to her:
The country’s overall cryptocurrency market is worth nearly $70 billion, well above Venezuela’s $28.3 billion and second only to Brazil in the region.
This may provide the government with the liquidity it needs to fund Payment Loan to the International Monetary Fund. Other criticism of the project has to do with the establishment of foreign banks to act as retention agents for the money, and how the government will use international treaties to obtain information about cryptocurrency holders.
Sebastián M. Domínguez of SDC Tax Advisor said:
There is a large list of countries reporting overseas accounts of Argentines, known as “collaborators”. These are over 120 countries, including crypto-friendly countries like Malta, Seychelles, Virgin Islands, Liechtenstein, Gibraltar, and El Salvador.
In this sense, the Argentine Tax Agency Announce Last month, it backed a global reporting system that will help tax regulators avoid cryptocurrency-related tax evasion around the world.
What do you think of this new legal project passed by the Argentine Senate? Let us know in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons