Pay Taxes on DeFi Yield in Argentina: Your 2024 Compliance Guide

Understanding DeFi Taxes in Argentina: Why Compliance Matters

As decentralized finance (DeFi) gains traction in Argentina, investors earning yield from liquidity mining, staking, or lending must navigate complex tax obligations. The Argentine Tax Authority (AFIP) treats DeFi earnings as taxable income, with non-compliance risking penalties up to 200% of owed taxes plus interest. This guide clarifies how to legally pay taxes on DeFi yield in Argentina while maximizing your returns.

How Argentina Taxes DeFi Yield: Key Principles

Argentine tax law categorizes DeFi yield under “Rentas de Capital” (Capital Income) or “Ganancias de Cuarta Categoría” depending on activity frequency:

• Income Tax (Ganancias): Applies progressive rates from 5% to 35% on annual net profits after deductions
• Personal Assets Tax (Bienes Personales): Annual 0.5% to 1.75% levy on global crypto holdings exceeding ARS 6 million (~USD 6,500)
• Tax Triggers: Yield accrual, token swaps, and fiat conversions create taxable events

Step-by-Step Guide to Reporting DeFi Income

Follow this process to ensure compliant tax filing:

1. Track All Transactions: Use tools like Koinly or CoinTracking to log yield amounts, dates, and token values at receipt
2. Convert to Argentine Pesos: Calculate yield value using AFIP’s official exchange rate on the day of receipt
3. Deduct Allowable Expenses: Include gas fees, platform costs, and professional advisory fees
4. File Monthly/Annual Returns: Report via AFIP’s “Monotributo” (for occasional earnings) or “Ganancias” regime (regular investors)

Critical Mistakes to Avoid With DeFi Taxes

• Ignoring Small Yield: AFIP requires reporting ALL income, even minimal staking rewards
• Misclassifying Assets: Stablecoin yields ≠ currency holdings; they’re taxed as capital assets
• Overlooking Foreign Platforms: Argentine residents must declare global DeFi earnings
• Missing Deadlines: Ganancias filings are due annually in May; late submissions incur 2% monthly interest

Essential Tools for Argentine DeFi Taxpayers

Simplify compliance with these resources:

• AFIP Digital Tax Portal: Official platform for filings and payments
• Crypto Tax Software: Koinly (supports local tax rules) or Caja de Crypto for automated calculations
• Blockchain Explorers: Etherscan or BscScan to verify transaction histories
• Certified Advisors: Hire CPAs registered with Consejo Profesional de Ciencias Económicas

Frequently Asked Questions (FAQs) About Paying Taxes on DeFi Yield in Argentina

Is DeFi yield taxed differently than bank interest?

Yes. Bank interest has a 5% fixed withholding tax, while DeFi yield uses progressive Ganancias rates based on your total annual income bracket.

How does AFIP detect undeclared DeFi income?

Through bank transaction monitoring, international CRS data sharing, and blockchain analysis tools. Exchanges now report user data to tax authorities globally.

Can I deduct losses from impermanent loss?

Only if realized. Paper losses from liquidity pool depreciation aren’t deductible until you withdraw funds and lock in the loss.

Do I pay taxes if I reinvest yield?

Yes. Tax applies when yield is earned, regardless of whether you convert to fiat or reinvest. Compounding creates layered tax events.

What if I use privacy tools like Tornado Cash?

Obfuscation doesn’t exempt liability. AFIP considers intentional concealment as tax evasion, punishable by fines or criminal charges.

Disclaimer: Tax regulations evolve rapidly. Consult a certified Argentine tax professional before filing. This guide reflects 2024 rules under Ley de Impuesto a las Ganancias (Art. 82) and AFIP General Resolution 4835.