Cryptos are increasingly being used to perform different transactions around the world. They make it possible to pay for goods and services in physical and virtual stores. Recently, they have appeared in the tax field. Find out how it happened.
Argentina Province Embraces Cryptos in Taxation
According a tweet from Bitcoin Magazine on August 29, “Argentina’s Mendoza Province Now Accepts Bitcoin and Cryptocurrencies for Tax Payments“. Indeed, Mendoza is a province in Argentina where taxpayers have the possibility of paying their taxes entirely in cryptocurrencies. The launch of the system took place during the past week, on August 24th. It must be said that currently the Mendoza tax administration is carrying out a strategic effort to modernize and digitize funds.
That said, the Argentinian province of Mendoza is one of the first to offer such a tax payment system. Nicolás Chávez, Base Director of the Mendoza Tax Administration, said: “It is one more door to facilitate the payment of taxes to taxpayers. It can be a service provided by the fee processor to which we have now integrated new know-how, corresponding to digital wallets and cryptocurrencies.“.
Taxpayers can easily access the tax utility from the province’s dedicated web page. The funds paid will be processed by an external crypto company which will return them to the province in Argentine pesos. With this system, the payment of taxes can only be done in stablecoins.
The province opted for these digital assets in an effort to insulate taxpayers from the volatility of transactions. Among the stablecoins accepted by the system are: Dai (DAI), USD Coin (USDC) and Tether (USDT).
Apart from Argentina, different city governments in America have introduced cryptos for paying taxes. This is the case in Latin America and Brazil, more specifically in Rio de Janeiro.
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