How to Report DeFi Yield in Argentina: Complete Tax Guide for Crypto Investors

Understanding DeFi Yield Taxation in Argentina

Decentralized Finance (DeFi) yield—earned through staking, liquidity mining, or lending—is taxable income under Argentine law. The Federal Administration of Public Revenues (AFIP) treats crypto earnings similarly to traditional investments. All residents must declare worldwide income, including DeFi yields, under Income Tax Law (Ley de Impuesto a las Ganancias) and Personal Assets Tax (Impuesto sobre los Bienes Personales). Failure to report can trigger audits, penalties up to 200% of owed tax, or legal action. With Argentina’s strict capital controls and volatile economy, accurate reporting is crucial for compliance.

Step-by-Step Guide to Reporting DeFi Yield

1. Track All Transactions: Record dates, yield amounts (in original crypto), platform names, and wallet addresses using tools like Koinly or CoinTracking.
2. Convert to Argentine Pesos (ARS): Calculate ARS value using AFIP’s official exchange rate (Comunicación A 3500) on the day you received the yield—not when sold.
3. Categorize Income Type: Classify as “Rentas de Capital” (capital income) for passive earnings or “Ganancias de Fuente Argentina” if platforms involve local entities.
4. Deduct Allowable Expenses: Subtract gas fees, platform commissions, and hardware costs directly tied to yield generation.
5. File Tax Forms: Report gains in Formulario 572 (Income Tax) and declare holdings exceeding ARS 6M in Formulario 720 (Personal Assets Tax) by June 30 annually.
6. Pay Taxes Owed: Settle liabilities via AFIP’s online portal using bank transfer or approved payment methods.

Overcoming Common Reporting Challenges

• Challenge: Crypto volatility complicates ARS conversion.
  Solution: Use AFIP’s historical exchange rate tool and document calculations.
• Challenge: Unclear DeFi tax classifications.
  Solution: Consult Resolution 777/2023 for crypto guidelines or hire a contador público (CPA) specializing in crypto.
• Challenge: Tracking yields across multiple protocols.
  Solution: Integrate wallets with tax software like Catax for automated reporting.
• Challenge: Proving fund origins to AFIP.
  Solution: Maintain KYC records and blockchain transaction histories for 10 years.

Essential Tools for Argentine DeFi Investors

• Tax Software: Koinly (supports AFIP requirements), Catax (localized for Argentina)
• AFIP Resources: Online portal for forms, exchange rates, and digital certificates (Firma Digital)
• Compliance Tools: Chainalysis for transaction tracing, Ledger hardware wallets for security
• Professional Services: Crypto-savvy accountants from firms like PwC Argentina or Grimaldi Studio Jurídico

FAQ: Reporting DeFi Yield in Argentina

1. Is DeFi yield taxable if I reinvest it?

Yes. AFIP taxes yield at receipt, regardless of reinvestment. The ARS value when earned is your taxable base.

2. How does AFIP know about my crypto earnings?

Through Central Bank monitoring of crypto exchanges, bank transfers, and international data-sharing agreements (e.g., CRS). Non-reporting risks detection in audits.

3. Can I offset losses from other crypto investments?

Yes. Capital losses from crypto trading can offset DeFi yield gains within the same fiscal year under Income Tax rules.

4. What exchange rate should I use for stablecoins?

Convert USDT/USDC yields using AFIP’s USD-ARS rate on receipt date. Never use parallel market rates.

5. Are there tax exemptions for small yields?

No blanket exemptions. However, Personal Assets Tax only applies if total global assets exceed ARS 6 million (~USD 6,500).

Always consult a certified tax professional before filing. Regulations evolve rapidly—AFIP issued 12 crypto-related updates in 2023 alone. Proactive compliance protects against penalties in Argentina’s complex tax landscape.