How to Report NFT Profit in Argentina: Complete Tax Guide 2024

As NFTs (Non-Fungible Tokens) continue transforming digital ownership in Argentina, understanding tax obligations is crucial for investors. Reporting NFT profits correctly to AFIP (Federal Administration of Public Revenues) prevents penalties and ensures compliance. This comprehensive guide explains Argentina’s NFT taxation framework, step-by-step filing procedures, and expert tips for seamless reporting.

Understanding NFT Taxation in Argentina

In Argentina, NFT transactions are treated as capital assets under Income Tax Law (Ley de Impuesto a las Ganancias). Profits from NFT sales trigger taxable events when:

• You sell an NFT for more than its acquisition cost
• You trade NFTs for other cryptocurrencies or assets
• You receive NFT royalties exceeding exemption thresholds

Tax rates follow Argentina’s progressive scale for capital gains, ranging from 5% to 35% based on profit magnitude. Unlike some countries, Argentina taxes worldwide income – foreign platform earnings must be declared.

How NFT Profits Are Calculated

Taxable gain = Selling Price – (Acquisition Cost + Allowable Expenses)

Allowable expenses include:

1. Original NFT purchase price
2. Gas fees and blockchain transaction costs
3. Platform commissions (e.g., OpenSea fees)
4. Conversion fees when exchanging crypto to ARS

Example: If you bought an NFT for 0.5 ETH ($800) with $20 gas fees and sold it for 2 ETH ($3,200) with $50 in commissions, your taxable profit is $3,200 – ($800 + $20 + $50) = $2,330.

Step-by-Step Guide to Reporting NFT Profits

1. Track All Transactions
   Document every NFT trade date, cryptocurrency value in ARS at transaction time, fees, and wallet addresses using tools like Koinly or CoinTracking.
2. Convert Values to Argentine Pesos (ARS)
   Use AFIP’s exchange rate of the day for crypto-to-ARS conversions at transaction time.
3. Complete Form F.572 Web
   Declare profits under “Rentas de Capital” in the annual Income Tax return (Declaración Jurada).
4. Report Foreign Platform Earnings
   Use Form 720 for assets held on international exchanges like Binance or Coinbase.
5. Submit Before Deadlines
   Annual filings are due April-June for the previous fiscal year. Late submissions incur 2-4% monthly penalties.

Common NFT Tax Reporting Mistakes

• Ignoring small transactions – All sales must be reported regardless of amount
• Forgetting gas fees – These reduce taxable gains
• Using incorrect exchange rates – Always use AFIP’s daily reference rate
• Mixing personal wallets – Maintain separate wallets for NFT trading
• Overlooking royalty income – Ongoing earnings from secondary sales are taxable

Essential Record-Keeping Practices

Maintain these documents for 10 years:

• Dated transaction histories from crypto wallets
• Exchange receipts with ARS conversion rates
• Smart contract details for royalty arrangements
• Proof of ownership transfers

Digital tools like CriptoAFIP can automate Argentina-specific crypto tax calculations.

Frequently Asked Questions (FAQ)

Are NFT losses deductible in Argentina?

Yes, capital losses from NFT sales can offset other capital gains within the same fiscal year. Unused losses carry forward for 5 years.

Do I pay taxes if I hold NFTs without selling?

No. Taxation occurs only upon disposal (sale, trade, or exchange). Holding NFTs incurs no taxes.

How are NFT royalties taxed?

Royalties are taxed as ordinary income at rates up to 35%. Report under “Rentas de Capital” if occasional or “Rentas de Cuarta Categoría” for professional creators.

Can AFIP track my NFT transactions?

Yes. Through international agreements like CRS (Common Reporting Standard), AFIP receives data from foreign exchanges. Non-compliance risks audits and fines up to 200% of owed tax.

What if I received NFTs as gifts?

Recipients pay no immediate tax. Upon future sale, taxable gain is calculated from the donor’s original acquisition cost. Document gift transfers with blockchain proof.

Are there tax-free thresholds?

No specific NFT exemptions exist. However, Argentina’s general tax-free minimum for capital gains is ARS 360,000 annually (2024).

Disclaimer: Tax regulations evolve rapidly. Consult a certified Argentine tax advisor (Contador Público) for personalized guidance. This guide reflects rules as of Q2 2024.