How to Pay Taxes on NFT Profit in Argentina: Your Complete 2024 Guide

As NFTs (Non-Fungible Tokens) explode in popularity, Argentine investors are discovering profitable opportunities in the digital art and collectibles market. But with profits come tax responsibilities. Understanding how to properly pay taxes on NFT earnings in Argentina is crucial to avoid penalties and stay compliant with AFIP regulations. This comprehensive guide breaks down everything you need to know about declaring and paying taxes on your NFT profits.

Understanding NFT Taxation in Argentina

In Argentina, NFT profits are treated as capital gains by the Federal Administration of Public Revenues (AFIP). Unlike physical assets, NFTs fall under the category of “other movable property” in tax legislation. Key principles include:

• Tax applies to profits from both primary sales (minting) and secondary market transactions
• Residents are taxed on worldwide NFT income, regardless of platform location
• Tax obligations trigger when converting crypto to fiat currency or using profits for purchases
• Losses can be deducted from gains within the same fiscal year

How NFT Profits Are Taxed: Rates and Calculations

NFT earnings in Argentina are subject to two primary taxes:

1. Income Tax (Ganancias): Progressive rates from 5% to 35% based on total annual income. Calculated on net profit (sale price minus acquisition cost and fees).
2. Personal Assets Tax (Bienes Personales): Annual wealth tax of 0.5% to 1.25% on NFT holdings exceeding ARS 6 million (approx. USD 6,600 as of 2024).

Calculation Example: If you bought an NFT for ARS 100,000 and sold it for ARS 300,000 (with ARS 10,000 transaction fees), your taxable gain would be ARS 190,000. This amount gets added to your annual income for tax bracket determination.

Step-by-Step Guide to Declaring NFT Profits

Follow this process to ensure compliant NFT tax reporting:

1. Track All Transactions: Record dates, amounts (in ARS equivalent), wallet addresses, and platform fees
2. Convert to Argentine Pesos: Use AFIP’s exchange rate on transaction date
3. Calculate Net Profit: Sale price minus (acquisition cost + associated expenses)
4. File Monthly VAT Returns: If NFT trading constitutes commercial activity
5. Declare Annually: Report gains in your Income Tax return (Form 572) by April 2025 for 2024 earnings
6. Pay Assets Tax: If total holdings exceed exemption thresholds (December 31st valuation)

Essential Record-Keeping Requirements

AFIP requires maintaining these documents for 10 years:

• Blockchain transaction IDs and wallet statements
• Purchase/sale agreements and platform fee receipts
• Exchange records showing ARS conversion rates
• Proof of ownership transfers and creation certificates
• Documentation for deductible expenses (gas fees, marketing costs)

Tip: Use crypto tax software like Koinly or CriptoMate to automate tracking and AFIP-compliant reports.

Penalties for Non-Compliance

Failure to properly declare NFT profits may result in:

• Fines of 50% to 100% of evaded tax
• Monetary correction adjustments for inflation
• Criminal charges for severe cases (> ARS 500,000 undeclared)
• Asset freezing on crypto exchanges

Voluntary disclosure through the “Moratoria” program can reduce penalties by up to 70% for previous undeclared earnings.

Frequently Asked Questions (FAQs)

Do I pay taxes if I only hold NFTs without selling?

No tax is due on unrealized gains. However, holdings exceeding ARS 6 million are subject to the annual Personal Assets Tax based on December 31st market value.

How are NFT profits taxed if I receive payment in cryptocurrency?

Tax triggers when you convert crypto to fiat or use it for purchases. You must calculate the ARS value at conversion date and declare it as income. Retaining profits in stablecoins like USDC still requires annual asset declaration.

Can I deduct expenses related to NFT activities?

Yes, allowable deductions include:

• Gas fees and platform commissions
• Software/tools for creation or trading
• Marketing costs for primary sales
• Professional advisory fees

Keep verifiable receipts for all deductions.

Are there tax treaties for foreign NFT platforms?

Argentina has no specific NFT tax treaties. You must self-declare all international platform earnings. Foreign platforms don’t automatically report to AFIP, but tax authorities can request data through international agreements.

What if I trade NFTs as a business rather than investment?

Regular traders must register as monotributistas or autonomous taxpayers. This adds monthly VAT (21%) and social security contributions, but allows broader expense deductions. Threshold: >12 transactions or ARS 1.5 million annual revenue.

How does inflation impact NFT tax calculations?

Argentina’s high inflation requires using AFIP’s monthly inflation adjustment coefficients when calculating acquisition costs for older NFTs to determine real profit margins accurately.

Disclaimer: Tax regulations evolve rapidly. Consult a certified Argentine tax professional (contador público) specializing in crypto assets before filing. This guide reflects interpretations as of mid-2024.