As per the latest reports from Argentina, Cordoba will now be the first province in the country to have imposed tax laws on cryptocurrencies. One of the provincial legislatures has recently voted in favor of the proposed bill that suggested imposing taxes on cryptocurrencies.
According to the bill, the taxes would be imposed on the gross incomes that will be accumulated through cryptocurrency transactions. As the legislation has been implemented in the Cordoba province, therefore, all the cryptocurrency retail traders and exchanges will have to adhere to the law.
However, the tax amount set by the legislator in the “Tax Law 2021” for cryptocurrencies is very flexible and reasonable. According to the Tax Law 2021, the cryptocurrency retailer traders and exchanges will have to pay 4% to 6.5% taxes on the gross incomes they accumulate through crypto-transactions.
The law is not just limited to entities that are solely dealing in cryptocurrencies, it would also extend to companies involved in receiving payments through cryptocurrencies.
The law suggests that the companies involved in receiving cryptocurrency payments for services would also be subjected to pay 0.25% tax on the total amounts received.
One of the cryptocurrency communities known as Cordoba Bitcoin (BTC) has also accepted the new legislation without any resistance. The local media outlet “Cordoba Bitcoin (BTC)” has even stated that the legislation is very flexible and reasonable for the entire crypto-industry in the country.
Therefore, it would prove to be very essential for other provinces to adopt the same legislation and started applying it at the earliest. The local media outlet has recommended that the national government should pick up the legislation and apply it to the entire country.
The local media platform also stated that previously, the legislation around the cryptocurrencies in the country was 15% taxation on the total earnings. In order to keep track of the transactions, the Central Bank of Argentina Republic had issued a notice to all the local cryptocurrency exchanges.
According to the notice, all the local cryptocurrency exchanges were required to provide the transaction data and reports for all the Argentinean citizens. The regulator had also made it crystal clear that any firm found not adhering to the notice would be met with legal consequences.
However, while the majority of the crypto-community in Cordoba is filled with joy, the local tax consultants are telling a different story. As per them, the new legislation would end up driving many investors away from the crypto-platform.
One of the local tax consultants, Marcos Zocaro talked about the negative impact of the latest crypto-legislation in the province.
As per Zocaro, many provinces in the country are not implementing any crypto-taxes on the citizens. Therefore, implementing taxes on cryptocurrencies that are decentralized in nature would end up driving away from the investors from the industry.