How to Report DeFi Yield in Argentina: Step-by-Step Tax Guide for 2024

Understanding DeFi Yield and Tax Obligations in Argentina

Decentralized Finance (DeFi) yield—generated through staking, liquidity mining, or lending—is taxable income in Argentina. The Administración Federal de Ingresos Públicos (AFIP) treats crypto earnings similarly to traditional investments. With Argentina’s strict tax compliance requirements, failing to report DeFi gains can trigger audits, penalties up to 200% of owed taxes, or legal action. This guide clarifies Argentina’s crypto tax framework and walks you through compliant reporting.

Step-by-Step Guide to Reporting DeFi Yield

Step 1: Calculate Your Annual DeFi Earnings

Track all yield generated across platforms like Aave, Compound, or Uniswap. Include:

• Staking rewards (e.g., ETH 2.0, Solana)
• Liquidity pool commissions
• Lending interest
• Airdrops and hard forks

Use blockchain explorers (Etherscan) or tax tools (Koinly, CoinTracking) to automate data aggregation.

Step 2: Convert Earnings to Argentine Pesos (ARS)

AFIP requires valuations in ARS using the official exchange rate at the time of receipt. Example:

• If you received 0.1 ETH as staking reward on June 1 when 1 ETH = ARS 1,200,000, your taxable income = ARS 120,000
• Use AFIP’s historical exchange rate tool or Banco Nación rates for accuracy

Step 3: Determine Taxable Income Category

DeFi yield typically falls under:

• Rentas de Cuarta Categoría: For individuals (monotributistas or autónomos), taxed at progressive rates from 5% to 35%
• Corporate Tax: For companies, fixed 30% rate on net profits

Step 4: Complete AFIP Tax Forms

File using these forms:

• Formulario 572: For capital gains and investment income (due monthly/annually)
• Declaración Jurada: Annual income tax return (Form 710 for individuals)
• Include DeFi yield under “Otros Ingresos” (Other Income) with detailed transaction records

Step 5: Submit and Pay Taxes

• File electronically via AFIP’s “Monotributo” or “Sistema de Cuentas Tributarias” portals
• Pay via bank transfer, Pago Fácil, or Rapipago
• Deadlines: Monthly filings by the 20th; annual returns by June 30 for the prior tax year

Key Compliance Tips for Argentine Crypto Investors

• Record-Keeping: Maintain CSV exports of all transactions for 10 years
• Dollar Valuation: Convert crypto→USD→ARS using AFIP-approved rates
• Professional Help: Consult a contador público (CPA) specializing in crypto
• Penalties: Late filings incur 2%-200% fines plus interest; deliberate evasion risks criminal charges

Frequently Asked Questions (FAQ)

Is DeFi yield taxable if I reinvest it immediately?

Yes. Tax applies at receipt, regardless of reinvestment. Argentina follows an “accrual” system—income is taxable when earned, not when cashed out.

What if I use international DeFi platforms?

AFIP requires reporting global income. Use platform tax reports (e.g., Binance Tax Tool) and disclose foreign holdings in Form F. 720.

Can I deduct DeFi transaction fees?

Yes. Gas fees, exchange commissions, and wallet costs are deductible expenses. Maintain receipts for audit proof.

How does the monotributo system apply to DeFi?

If total crypto earnings (including DeFi) fall below ARS 4.5M/year, you may qualify for simplified monotributo taxation. Consult AFIP’s category calculator.

Are stablecoin yields treated differently?

No. All yield—whether from volatile coins (BTC) or stablecoins (USDC)—is taxed as ordinary income at ARS value upon receipt.

Disclaimer: This guide provides general information, not tax advice. Crypto regulations evolve rapidly—always verify rules via AFIP.gov.ar or a qualified tax professional.