The draft bill proposed by Argentina's finance ministry aims to tighten the country’s money laundering rules and fight against drug trafficking.
Sergio Massa, the Minister for the Economy, spearheaded a draft bill that would oblige citizens to reveal their holdings, according to local sources. The bill in question will be discussed in the upcoming parliamentary session, the report added.
As per the terms of the bill, citizens will be encouraged to declare their assets, financial assets like stocks and crypto assets. Declarations will be entirely voluntary. However, the bill also suggests that in case of a failure to declare assets and tokens may result in an investigation by the Federal Administration of Public Revenues (AFIP), the nation’s tax body.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What Does Staking Mean in Crypto? (Easily Explained!)
In the case of crypto assets, citizens will be asked to submit an affidavit which is a voluntary statement that can be used as evidence as it is made under oath by the law.
Citizens who declare their assets and tokens on the voluntary forms would be subject to tax at a rate of 2.5% unless they aren’t high earners. According to the bill, individuals who have under $50,000 worth of assets will be charged at a lower initial rate of 1.5%.
Nevertheless, this tax rate only applies to ones who declare within the 90-day period from the moment bill goes through the parliament.
Meanwhile, citizens who exceed the 90-day period and wait for the AFIP to uncover their tokens could pay up to a hefty 10% tax penalty.
In other news, Nigeria is looking to pass a bill that would allow citizens to use crypto.
