The Argentinian Senate has approved a bill that would allow the government to tax non-declared assets held in foreign countries by citizens of the country. This includes stocks, properties, bonds, and even cryptocurrencies. The purpose of the legistlation would be to collect more funds to pay the $45 billion debt that Argentina has with the International Monetary Fund (IMF).
The policy establishes these funds collected will be directly managed by the Economy Ministry. Depending on the time period and the goods owned, if approved, Argentinian citizens will have to pay up to 50% on these assets. The fund, which will be denominated in dollars, will be active until Argentina pays its debt to the International Monetary Fund (IMF), of about $45 billion.
The bill will have to be approved now by the Chamber of Deputies, where it has less of a chance of being passed, according to local media.
The reaction in the country has been mostly negative, with many people criticizing many of the aspects proposed by the legislation. The project mentions cryptocurrency assets as part of its scope, and this is worrying people in the sector. Kim Grauer, Research’s director, thinks there is a good reason for this. According to her:
The country has an overall cryptocurrency market valued at nearly $70 billion, well above Venezuela’s $28.3 billion, only second to Brazil in the region.
Sebastián M. Domínguez, Of SDC Tax Consultants, stated:
There is an extensive list of countries reporting accounts of Argentinians abroad, known as ‘cooperators’. These are more than 120 nations, including crypto-friendly countries such as Malta, Seychelles, Virgin Islands, Liechtenstein, Gibraltar, and El Salvador.
What do you think about this new law project passed by the Argentinian Senate? Tell us in the comments section below.