The Government of the Argentine Republic included -through a decree- operations with cryptocurrencies among which are included by the tax on credits and debits in bank accounts. In this way, cryptocurrencies would be affected by what in Argentina is known as a “check tax”.
Curiously, the so-called “check tax” was a tool that was to be used temporarily in emergency situations, and yet it has remained in force over the years. To better understand this situation, it must be taken into account that Argentina has a drag on political and economic crises that have occurred for decades.
Now, Through decree 796/2021, published in the Official Gazette, changes are made to the Competitiveness Law (from which the check tax came at the beginning of 2001). In this way, cryptocurrency operations are included.
ARTICLE 7 of the decree indicates the following:
– Incorporate as the second to last paragraph of article 10 of the Annex to Decree No. 380 of March 29, 2001 and its modifications, the following:
“The exemptions provided for in this decree and in other regulations of a similar nature will not be applicable in those cases in which the movements of funds are linked to the purchase, sale, exchange, intermediation and / or any other operation on crypto assets, cryptocurrencies, digital currencies, or similar instruments, in the terms defined by the applicable regulations ”.
The Argentine Chamber of Fintech issued a statement
After learning about decree 796/2021, the Argentine Chamber of Fintech issued a statement in which they stated that “The news was unexpected.”
“The standard will have an immediate impact on formal operations, that -when they see their costs increased- they will turn to the informal market. Thus, the State will lose visibility on these transactions, which will not decrease in quantity or volume, considering the boom in which they are at a global and local level, ”they remarked from the aforementioned chamber.
“What’s more, the measure will affect the operation of an activity that is in full development throughout the world and that brings growth, innovation, dynamism, inclusion, and job creation to the system ”, they added later.
On the other hand, they pointed out that the scope of the standard is not clear either nor when it will be operational: “the reference to ‘the terms that the applicable regulations define’ would seem to postpone certain details to future regulations, which raises additional questions”.
From the Argentine Chamber of Fintech they affirmed that they want to continue working together with the government through a dialogue that allows them to resolve the questions raised by the regulation, thus generating the necessary conditions for the development of a sector that could represent strategic opportunities for Argentina in the near future .
A legal perspective
Lawyer Lautaro Varea wrote an analysis on this topic (it can be read in full here). In this analysis, he concluded with the following conclusion: “We can reflect internally that said decree seems to be another government collection attempt, in the midst of terms of the ´transfer 3.0´ program that sought to eliminate cash and increase payments through QR. On the other hand, the government gets into an unregulated field such as crypto-asset exchanges, which are frequently immersed in attempts to adapt to the scant regulation that exists in the country on Fintech in general and, even more, in what respective specifically to the crypto market. Comparing the current situation, we take the example of Mexico, a government targeted by the taxes charged to Fintech companies, but who have at least regulated -as pioneers- these types of activities seeking their development within a global competition for innovation regarding financial startups. We will not know the future of said decree, which could well be maintained without objections, as the previous decrees and taxes have done, but the truth is that its constitutionality will be the subject of intense debate in the future of the development of the crypto ecosystem in Argentina “.
Check Tax: The story of something that was to be temporary but remained in force
To understand where the idea of what in Argentina is known as a “check tax” arose, we should go back to the beginning of the last de facto government. And it is that the initiative would have arisen as a recommendation to sustain the so-called “Program of recovery, cleaning and expansion of the Argentine economy”, of the military junta that was in government at that time.
It could be said that this tax had its validity in three different periods. In a first stage, it was imposed from mid-1976 to the end of 1978 (during the military dictatorship). Then there was a second period, from the return of democracy in Argentina, in 1983, until 1992.
Finally, in 2001, the year of a major political and economic crisis in Argentina, the government at that time made use of the “check tax” again. Interestingly, it was said that it was going to be implemented temporarily. However, over the years, with changes of presidents of different political signs and successive extensions, the tax became permanent, and is still in force today (see Law 25413).
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