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

Understanding NFT Taxation in Argentina

As NFTs (Non-Fungible Tokens) explode in popularity, Argentinian taxpayers must navigate complex reporting rules. The Federal Administration of Public Revenues (AFIP) treats NFT profits as taxable income, whether you’re an occasional seller or professional trader. Failure to report can trigger audits, penalties up to 200% of owed taxes, and legal consequences. This guide breaks down Argentina’s NFT tax framework with actionable steps for compliance.

Are NFT Profits Taxable in Argentina?

Yes. AFIP categorizes NFT earnings under two regimes:

• Capital Gains Tax: For occasional sales (e.g., selling a personal NFT collection). Taxed at progressive rates from 5% to 15% after inflation adjustment.
• Income Tax: For habitual traders or creators (Monotributo or General Regime). Rates range from 5% to 35% based on annual earnings.

Key factors determining your category include transaction frequency, profit margins, and whether NFT activities constitute your primary income source.

Calculating Your NFT Profit

Use this formula: Net Profit = Selling Price – (Acquisition Cost + Allowable Expenses)

• Acquisition Cost: Purchase price in ARS (converted at official exchange rate on transaction date)
• Allowable Expenses:
  • Gas fees and blockchain transaction costs
  • Platform commissions (e.g., OpenSea fees)
  • Digital wallet maintenance fees

Example: Bought NFT for 100,000 ARS (+10,000 ARS gas fees). Sold for 200,000 ARS (-15,000 ARS platform fee). Net profit = 200,000 – (100,000 + 10,000 + 15,000) = 75,000 ARS.

Step-by-Step Reporting Process

1. Gather Documentation
   • Transaction histories from crypto exchanges
   • Blockchain wallet addresses
   • Receipts for acquisition and sale
2. Convert to Argentine Pesos (ARS)

   Use the AFIP’s official exchange rate on the transaction date. Record conversions for every trade.

3. File Through AFIP’s System
   • Occasional sellers: Declare via Form 572 under “Bienes Personales”
   • Professional traders: Include profits in annual Income Tax return (Form 710)
   • Monotributistas: Add earnings to quarterly filings
4. Pay Taxes Due

   Deadlines align with standard tax calendars: April-June for annual returns. Use AFIP’s electronic payment portal.

Critical Deadlines and Penalties

• Annual Filing: April 1 – June 30 (for prior year’s profits)
• Late Fees: 2% monthly interest + 50% surcharge
• Underreporting Penalties: 100%-200% of evaded tax + potential criminal charges

AFIP actively cross-checks crypto exchange data since 2020. Major platforms like Binance report user transactions automatically.

Proactive Compliance Tips

• Use crypto tax software (e.g., Koinly or CriptoYa) for ARS conversions
• Maintain separate wallets for NFT transactions
• Retain records for 10 years (AFIP audit window)
• Consult a contador público specializing in crypto assets

Frequently Asked Questions

Q: Do I owe taxes if I sell NFTs at a loss?
A: No. Losses can offset future NFT gains within the same fiscal year. Document losses via Form 572.

Q: How are NFT airdrops or gifts taxed?
A: Airdrops count as income at market value upon receipt. Gifts exceeding $1.5M ARS may incur inheritance tax under AFIP’s Bienes Personales.

Q: Can AFIP track my NFT transactions?
A: Yes. Law 27,430 requires exchanges to report user data. Non-custodial wallets leave audit trails via blockchain explorers.

Q: Are international NFT sales taxable?
A: Yes. Argentinian residents pay taxes on worldwide income. Foreign platforms still trigger reporting obligations.

Q: What if I received payment in cryptocurrency?
A: Convert to ARS using AFIP’s exchange rate on the transaction date. Both the NFT sale and crypto conversion are taxable events.