In 2023, Buenos Aires will begin taxing cryptocurrency mining

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In 2023, the Argentine province of Buenos Aires will start taxing cryptocurrency mining and perhaps staking.

An updated proposal would change the tax code to include cryptocurrency mining as a taxable activity and impose a 4% tax on any revenue derived from such operations.

Cryptocurrency mining is becoming a taxable activity in Buenos Aires

The Buenos Aires province in Argentina gave the go-ahead for a plan to include bitcoin mining as a taxable activity for the upcoming calendar year.

The activity officially referred to as “Processing and validation services for crypto assets and/or cryptocurrency transactions (crypto asset and/or cryptocurrency mining)” will necessitate a 4% aliquot over revenue generated in these operations, according to a document presented by the province’s governor, Alex Kicillof.

The taxes would not be tied to any other taxes imposed by the Argentine national government and would be paid to the provincial government.

The document makes it clear that this tax will only be imposed where the hardware utilised to carry out the activity is situated within the boundaries of the province.

Analysts’ concerns concerning the application of this tax mostly revolve around two topics.

Solely ASIC miners and graphics cards will be taken into account for these taxes if the authorised documents only mention proof-of-work hardware.

However, staking might also be subject to taxation if computers operating staking nodes are seen as being a component of this hardware.

Additionally, Argentine accountant Marcos Zocaro is uncertain about the rate at which the cryptocurrencies that have been mined (or staked) would be taxed.

It’s also not clear if this value will be determined at the time the cryptocurrency is mined or at the end of the tax period.

Buenos Aires declared in April that beginning in 2019, customers would be able to pay taxes using cryptocurrencies.

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