On November 16, 2021, through Executive Order No. 796/2021 (hereinafter, the “Decree”), the Executive Branch ordered the application of the Tax on Credits and Debits in Bank Accounts and Other Transactions (hereinafter, the “IDyC”) on certain transactions involving crypto assets, cryptocurrencies, digital currencies, and similar instruments.
Specifically, the Executive Order introduced amendments to Competitiveness Act No. 25413 and Executive Order No. 380/2001, modifying the treatment in the IDyC that until now was applicable to Payment Service Providers (hereinafter, “PSPs”) and limiting exemptions in cases where fund movements are linked to the purchase, sale, exchange, intermediation, and/or any other transaction involving crypto assets, cryptocurrencies, digital currencies, or similar instruments, as defined in the applicable regulations.
In practice, this means that whenever there is a transfer of funds from a bank account or a PSP to or from an Exchange (i.e., the meeting point where cryptoasset exchanges take place), such movements will be subject to IDyC. In such cases, the bank or PSP must act as a collection agent, applying the general rate of 0.6% provided for in the IDyC.
As established by the Central Bank of Argentina, the new amendments will take effect on November 29, 2021. However, the Federal Public Revenue Administration has yet to publish the regulations that will define the practical aspects of implementing the amendments described.
