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

Understanding NFT Tax Obligations in Argentina

As Non-Fungible Tokens (NFTs) explode in popularity, Argentine taxpayers must navigate complex crypto tax regulations. The Federal Administration of Public Revenues (AFIP) treats NFTs as digital assets subject to capital gains tax. Whether you’re an artist, collector, or trader, profits from NFT sales must be declared in your annual tax return. Failure to report can trigger audits and penalties of up to 200% of owed taxes plus interest.

Step-by-Step Guide to Reporting NFT Profits

1. Calculate Your Capital Gain: Subtract acquisition cost (purchase price + transaction fees) from final sale price. Convert values to Argentine Pesos (ARS) using AFIP’s exchange rate on transaction dates.
2. Document Transactions: Maintain records of wallet addresses, blockchain IDs, transaction hashes, and platform fees for all NFT activities.
3. Complete Form F.572 Web: Declare gains under “Bienes Personales” (Personal Assets) in the Digital Tax System. Foreign-held assets require additional Form 720.
4. Apply Tax Rates: Profits are taxed at progressive rates from 5% to 35% based on income brackets under “Ganancias” (Income Tax).
5. Submit Before Deadlines: Annual returns are due April-June for the previous fiscal year. Quarterly advance payments may apply for frequent traders.

Essential Documentation for NFT Tax Reporting

• Blockchain transaction histories with timestamps
• Original purchase agreements and sale contracts
• Proof of ARS conversion rates (BCRA or AFIP official rates)
• Records of gas fees and platform commissions
• Wallet ownership verification documents

NFT Tax Calculation Methods in Argentina

Argentina uses the FIFO (First-In-First-Out) method for NFT cost basis calculation. For example:

Scenario: Bought NFT A for 0.5 ETH ($500) in January, NFT B for 0.7 ETH ($700) in March. Sold NFT A for 1 ETH ($1,200) in December.
Taxable Gain: $1,200 – $500 = $700 profit. Tax applies to $700 at your income bracket rate. Remember: Losses can offset gains within the same fiscal year.

Common NFT Tax Reporting Mistakes to Avoid

• Using unofficial exchange rates instead of AFIP/BCRA rates
• Neglecting to report NFT-to-NFT trades (considered taxable events)
• Forgetting to deduct transaction fees from gains
• Miscalculating holding periods (short-term vs. long-term distinctions don’t apply in Argentina)
• Omitting foreign platform earnings from declarations

Frequently Asked Questions

Are NFT creators taxed differently than buyers in Argentina?

Yes. Creators pay taxes on minting income under “Rentas de Cuarta Categoría” (professional services) at 5-35% rates, plus VAT if applicable. Buyers only pay capital gains upon profitable resale.

Do I pay taxes if I sell NFTs at a loss?

No tax is owed on losses, but you must still report the transaction. Losses can be carried forward for 5 years to offset future capital gains.

How does AFIP track NFT transactions?

AFIP collaborates with crypto exchanges under Resolution 4616/2020. Transactions over ARS 200,000 (~$220) trigger automatic reporting. Blockchain analysis tools also identify high-value wallets.

Can I use crypto tax software for Argentine reporting?

International tools like Koinly or CoinTracking can generate reports, but must be adjusted for AFIP’s specific requirements including ARS conversions and local tax forms. Consult a contador público (CPA) for validation.

What if I received NFTs as a gift?

Recipients pay no immediate tax, but must record the market value at receipt. Taxes apply only when selling, with cost basis set at the gift’s value. Givers may owe inheritance/gift taxes above ARS 10.8M.

Disclaimer: Tax regulations evolve rapidly. Consult a certified Argentine tax professional before filing. This guide reflects 2024 rules under Ley de Impuesto a las Ganancias.