How to Pay Taxes on DeFi Yield in Argentina: 2024 Compliance Guide

As decentralized finance (DeFi) transforms how Argentines earn passive income, understanding tax obligations for DeFi yield becomes critical. With Argentina’s complex tax landscape and growing AFIP scrutiny, failing to report crypto earnings can lead to severe penalties. This comprehensive guide breaks down exactly how to calculate, report, and pay taxes on DeFi yield in Argentina while avoiding common pitfalls.

What Is DeFi Yield and How Is It Earned?

DeFi yield refers to rewards generated from participating in decentralized finance protocols like:

• Liquidity mining: Providing crypto assets to liquidity pools (e.g., Uniswap, PancakeSwap)
• Staking: Locking tokens to support blockchain networks (e.g., Ethereum 2.0, Cardano)
• Lending: Earning interest by depositing crypto on platforms like Aave or Compound
• Yield farming: Strategically moving assets between protocols to maximize returns

These yields are typically paid in cryptocurrencies and accrue in real-time, creating unique tax tracking challenges.

Argentine Tax Laws for DeFi Yield Explained

Argentina treats DeFi yield as taxable income under these key regulations:

• Income Tax (Ley de Impuesto a las Ganancias): All DeFi rewards are considered “capital income” taxable at progressive rates up to 35%.
• Personal Assets Tax (Impuesto sobre los Bienes Personales): Crypto holdings exceeding ARS 6 million (≈USD 6,500) are subject to 0.5%-1.25% annual wealth tax.
• AFIP Resolution 4835/2020: Mandates reporting of all crypto transactions exceeding ARS 100,000 monthly.

Critical note: Taxes apply when you receive yield rewards, not just when converting to pesos.

Calculating Your DeFi Tax Liability: Step-by-Step

1. Track all yield receipts: Record dates, amounts, and market values (in ARS) when rewards hit your wallet.
2. Convert to Argentine pesos: Use the official AFIP exchange rate (A3500) at the time of receipt.
3. Apply income tax brackets:
   • First ARS 1,000,000/year: 5%
   • ARS 1,000,001–2,000,000: 15%
   • Above ARS 2,000,000: 35%
4. Example calculation: If you earn 0.5 ETH in staking rewards when 1 ETH = ARS 1,000,000:
   • Taxable income = ARS 500,000
   • Tax due = ARS 500,000 × 5% = ARS 25,000

Reporting and Paying DeFi Taxes in Argentina

Follow this process annually:

1. File Form F.572 Web via AFIP’s “Monotributo” system by June 30 each year
2. Declare yield income under “Rentas de Capital” (Box 4)
3. Pay taxes through:
   • AFIP’s online portal
   • Authorized banks (Banco Nación, Santander)
   • PagoMisCuentas platform
4. Retain records for 10 years: Wallet addresses, transaction IDs, exchange statements

5 Compliance Tips for Argentine DeFi Users

1. Use tax-tracking tools like Koinly or CoinTracking with AFIP exchange rates
2. Declare all wallets – AFIP cross-checks exchange data
3. Report yield even if not cashed out to fiat
4. Monitor tax treaty updates – Argentina may implement crypto-specific laws by 2025
5. Consult a contador público specializing in crypto taxes

FAQs: DeFi Taxes in Argentina

1. Is DeFi yield taxed if I reinvest it immediately?

Yes. Argentine tax law considers yield taxable upon receipt, regardless of reinvestment.

2. How does AFIP detect undeclared DeFi income?

Through:

• Exchange reporting (LocalBitcoins, Buenbit)
• Bank transaction monitoring
• Blockchain analysis tools

Penalties include 50%-100% fines plus criminal charges for evasion over ARS 500,000.

3. Are stablecoin yields taxed differently?

No. All DeFi yields – whether in ETH, USDT, or governance tokens – face identical income tax treatment.

4. Can I deduct DeFi transaction fees?

Yes. Gas fees and protocol charges directly related to yield generation are deductible expenses.

5. What if I earned yield on foreign platforms?

You must still declare it. Argentina taxes worldwide income for residents. Use the exchange rate at reward receipt date.

Key Takeaway: With AFIP increasing crypto audits, proactive compliance for DeFi yield is non-negotiable. Start tracking transactions today using peso-denominated records and consult a tax professional to avoid costly mistakes.