Argentinian Senate Passes Bill to Tax Assets Held Overseas

​The Argentinian Senate has approved a new bill that would allow the government to tax assets held by citizens in foreign countries. The approved text determines that the government will tax all kinds of assets that have not been declared to the tax authorities before, including real estate, stocks, cryptocurrency, and any assets with economic value.

The policy establishes these funds collected will be directly managed by the Economy Ministry. Depending on the time period and the goods owned, if approved, Argentinian citizens will have to pay up to 50% on these assets. The fund, which will be denominated in dollars, will be active until Argentina pays its debt to the International Monetary Fund (IMF), of about $45 billion.

The bill will have to be approved now by the Chamber of Deputies, where it has less of a chance of being passed, according to local media.

The reaction in the country has been mostly negative, with many people criticizing many of the aspects proposed by the legislation. The project mentions cryptocurrency assets as part of its scope, and this is worrying people in the sector. The country has an overall cryptocurrency market valued at nearly $70 billion, well above Venezuela's $28.3 billion, only second to Brazil in the region.

This might provide the government with the needed liquidity to fund payments to the IMF loan. Other criticisms of the project have to do with the establishment of foreign banks as retention agents for this money, and how the government will use international treaties to acquire information about crypto holders.

Source: Bitcoin.com