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

Understanding NFT Taxation in Argentina

As NFTs (Non-Fungible Tokens) explode in popularity, Argentine investors must navigate complex tax obligations. The Federal Administration of Public Revenues (AFIP) treats NFT profits as taxable income under the Income Tax Law (Ley de Impuesto a las Ganancias). Whether you’re an artist, collector, or trader, selling NFTs for profit triggers tax liabilities. Argentina taxes worldwide income for residents, meaning profits from international platforms like OpenSea or Rarible must be declared. Non-residents are only taxed on Argentine-sourced transactions. With AFIP increasing crypto surveillance through Resolution 4619/2020, proper reporting is critical to avoid penalties of 50-100% of unpaid taxes plus interest.

How NFT Profits Are Taxed in Argentina

NFT profits fall under two potential tax categories:

• Capital Gains Tax: Applies if NFTs are held as investments. Calculated as [Sale Price] minus [Acquisition Cost + Expenses].
• Ordinary Income Tax: If trading NFTs as habitual activity (e.g., frequent flipping), profits are taxed as business income.

Tax rates follow Argentina’s progressive scale:

• 0% for annual profits below ARS 2,340,000 (2024 threshold)
• 5-35% for higher earnings based on income brackets

Additional considerations:

• Transaction fees (gas, platform commissions) are deductible
• Losses can offset gains within the same fiscal year
• Bienes Personales (wealth tax) may apply if total assets exceed ARS 6 million

Step-by-Step Reporting Process

1. Gather Documentation
   • Transaction histories from all platforms used
   • Wallet addresses and blockchain IDs
   • Receipts for acquisition costs and expenses
   • Bank records showing fiat conversions
2. Calculate Taxable Profit
   • Profit = Final Sale Price – (Purchase Price + Gas Fees + Platform Fees)
   • Example: Buying NFT for 0.5 ETH (ARS 500,000) and selling for 1 ETH (ARS 1,000,000) with ARS 50,000 in fees = Taxable profit: ARS 450,000
3. File Through AFIP
   • Use Form F.572 web platform
   • Report under “Renta de capital mobiliario” (mobile capital income)
   • Declare in ARS using official exchange rate at transaction date
4. Pay Taxes Due
   • Deadline: April-June following tax year
   • Payment options: AFIP virtual office, Banco Nación, or authorized banks

Critical Mistakes to Avoid

• Ignoring Small Transactions: AFIP requires reporting all profits, even under ARS 100,000
• Miscalculating Cost Basis: Forgetting to include gas fees inflates taxable income
• Using Unofficial Exchange Rates: Always use AFIP’s average monthly USD/ARS rate
• Missing Deadlines: Late filings incur 2% monthly interest + penalties
• Not Documenting Losses: Unreported losses can’t offset future gains

Frequently Asked Questions

Q: Do I pay taxes if I trade NFTs for other cryptocurrencies?
A: Yes. Barter transactions are taxed based on the market value at exchange time.

Q: How are NFT airdrops or free mints taxed?
A: They’re considered income at fair market value upon receipt. If sold later, tax applies to profit above that value.

Q: Can I deduct hardware or software costs?
A: Only if NFT trading is your primary income source. Casual investors can’t deduct these expenses.

Q: What if I use international platforms?
A: You still must declare profits. AFIP receives data from 100+ crypto exchanges under international agreements.

Q: Are there tax treaties for double taxation?
A: Argentina has treaties with 20+ countries. Consult a professional to claim foreign tax credits.

Staying Compliant in 2024

With AFIP’s new blockchain monitoring tools, NFT tax evasion risks severe penalties. Maintain transaction logs using tools like Koinly or Accointing for automated reporting. For complex cases (e.g., DeFi integrations or DAO earnings), consult a certified contador público specializing in crypto. Remember: Declaring NFT profits isn’t optional—it’s fundamental to Argentina’s digital economy compliance.