La Pampa will charge Gross Income to all commercial activities with digital currencies.
As in other provinces, there are still certain unspecified legal issues.
Based on certain changes in its Tax Code, the Argentine province of La Pampa approved the collection of Tax on gross income for activities related to virtual currencies. In this way, together with Córdoba and Tucumán, it is the third province to tax the commercialization of bitcoin (BTC) and other cryptocurrencies.
The modifications it proposes the Tax Law 2022 affect first of all article 183 of the Tax Code, which details the activities achieved by Gross Income when they are carried out “regularly and for consideration”. Thus, article 52 of the law determines to add to the Tax Code a subsection by which the tax is applied to “the provision of services of any nature, directly or indirectly linked to operations related to digital currencies.”
With “digital currencies”, the text refers to virtual currencies, cryptocurrencies, crypto assets, tokens, stablecoins and “other concepts that by their nature and / or characteristics constitute and / or imply a digital representation of value that can be subject to trade ». Taking this definition into account, non-fungible tokens or NFTs could also be considered for the new standard.
In addition, article 53 of the Tax Law 2022 establishes an amendment to article 193 of the Tax Code, which specifies that the tax base for Gross Income “will be constituted by the difference between the purchase and sale prices” for certain activities. Among those mentioned, the addition of “foreign exchange or digital currency purchase and sale operations” is determined.
As detailed by the local media, The 2022 Tax Law was approved in an extraordinary session of the Pampas Legislature at the end of December. The project had the support of the ruling party, but the opposition voted against it. In the same session, the province’s budget for 2022 was also approved.
A new province that taxes bitcoin in Argentina
With this new legislative change, La Pampa – located to the west of the province of Buenos Aires and south of Córdoba, in the central region of the country – joins two other provinces that had already included the commercial exchange of cryptocurrencies in their Tax on gross income.
The first of them had been Córdoba, in March 2021, and later Tucumán was added, as reported by CriptoNoticias in November of the same year. As explained by a Tucumán official at that time, such a tax was applied to bitcoin and other cryptocurrencies in a similar way to what happens with the exchange of currencies, such as the dollar. In other words, crypto assets were put on par with international currencies.
About these projects, some questions remain unspecified, such as the equivalence that arises between bitcoin, which does not have underlying assets, and stablecoins, which do. On the other hand, as an expert explained when the first project of this type was approved, in Córdoba, it is also not clear what exchange rate will be taken into account to define the taxable minimum that is applied for the collection of Gross Income.