The tax lawyer, Diego Fraga, explained that “The purchase of crypto assets itself is not covered by the check tax. What this tax reaches are the transfers made from bank accounts or payment service providers to crypto-asset exchanges and vice versa. That is, debits and credits in said accounts “.
As for why the government decided to implement this tax, Fraga said that “the decree published today, apparently, aims to remedy a particular situation, which consists of reaching some crypto exchange accounts that were left out of the tribute because they were registered as payment service providers“and on who will face the expenses, he said:” What yes It may have some effect on the consumer is that the higher cost that those exchanges that until now were covered by the exemption will have to face is transferred. Generally, such costs are included in the price of the crypto asset, unless the exchange (intermediary) decides to absorb it. “
For its part, Martin Litwak, a tax lawyer, explained that there are four types of taxes in the world. “There is the income tax, the consumption tax, the wealth tax and the transaction tax, the last two are the worst that exist because they do not encourage investment or saving. Therefore, the check tax is a very bad tax, regardless of what is applied, “he said, adding:” In the context of tax pressure in Argentina, extending the application of a tax in areas where it was not applied is very harmful, that is why I am one hundred percent against this decision“.
“The pandemic accelerated the modernization of finance by expanding transactions carried out through electronic platforms. In this context, the FinTech world is drawing the attention of regulators globally. Argentina, for its part, through Decree 796/2021 has decided to levy a tax on debits and credits (known as check tax) on fund movements that include purchase, sale, exchange, intermediation and / or any other operation on crypto assets, cryptocurrencies, digital currencies, or similar instruments carried out by a legal person that is not considered an SME through companies dedicated to the electronic service of payments and / or collections on behalf and order of third parties and Payment Service Providers (Market Pago, TAP, Yacaré, Naranja X) “, he explained to Ámbito, Emiliano Tolaba, Bachelor of Systems and Financial Services Consultant.
As for who this tax weighs, Tolaba, explained: “This situation affects local Exchange (such as Buenbit, Ripio) and encourages migration to foreign platforms where there is no information exchange agreement with the Argentine Republic. The decree does not affect minority investors since it excludes human and legal persons considered SMEs (which can offset the tax in the payment of profits) “.
For its part, Angeles Goberna, Public Accountant, opined that “The general trend of the Argentine State is the imposition of various taxes, on consumption, on profits, on income, among many others, and this usually has negative and antagonistic impacts. In this case it is not the exception, and the big detriment is to local and smaller exchanges, such as Lemon Cash and BuenBit, which have less and less means to compete, taking into account that they are obliged to report to the National Securities Commission and share information with the Central Bank. ”
“The general trend will be the migration to foreign exchanges such as Binance or BingBon, or what are DeX or Decentralized Exchanges, which are completely outside the financial system. The spirit of cryptocurrencies is precisely the idea of staying out of the regulations, and putting pressure on them can have a devastating effect on the volume of those that are operated within the orbit of the banking systems, “closed Goberna.
Source From: Ambito
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