- Asset Disclosure System
One of the main objectives of this Bill would be to implement an important system for the disclosure of assets, particularly focused on US dollars held abroad or outside the banking system.
a) Persons and Assets Covered
The persons covered would be individuals, undivided estates and companies based in Argentina. The Bill provides that non-residents may adhere to the system, provided that they have assets in Argentina or Argentine source income.
The assets covered by the system would include national or foreign currency, real estate located locally or abroad, shareholdings, trust rights, securities, credits of any nature, among others.
The Bill would seek the creation of a “Special Account for the Regularization of Assets” in banks, in which the parties covered by the system would be obliged to deposit the aforementioned assets.
b) Special Regularization Tax
A new “Special Regularization Tax” would also be introduced, which would operate by applying a 5% tax rate on the total value of the regularized assets, both locally and abroad, as from the amount valued at USD 100,000 (in the event that the disclosed amount is lower, it would not be subject to any special tax).
The taxable base for purposes of calculating the Special Regularization Tax would be determined exclusively and exceptionally in US dollars, including assets in pesos. The taxable base of the latter would be calculated on the basis of the valuation of the MEP dollar as of 30 November 2023, i.e. ARS 858.82.
The payment of this tax would be made at the time of the adhesion to the system and in advance of the subscription of the corresponding tax returns, for a total of 75% of the amount of the tax. The deadline to pay the tax would be, in principle, 29 February, with an additional 75% penalty for those who pay it later.
c) Adhesion Benefits
All persons covered by the new system would enjoy the following benefits as a result of the regularization:
- Regularized assets would not be considered for the purposes of the presumptions of the ex officio determination of Law No. 11683
- Tax, exchange and customs offences and infringements arising from non-compliance with the obligations related to the regularized assets would be pardoned.
- Taxpayers would be exempted from the payment of taxes related to the regularized assets. This would include Income Tax, VAT, Tax on High Net Worth, Credits and Debits Tax, Real Estate Transfer Tax, among others.
- Exceptional Regularization System for Tax, Customs and Social Security Obligations
It would be possible for taxpayers and responsible parties to join the system, obtaining different benefits depending on the type of membership and the type of debt they have.
They would be eligible for obligations due prior to the entry into force of the Law and for infringements committed up to that date, whether or not related to those obligations.
a) The use of this regime would result in:
- The suspension of ongoing criminal tax and customs actions and the interruption of the criminal statute of limitations.
- The total cancellation of the debt under the conditions foreseen in the Scheme would result in the extinction of the criminal action, insofar as there is no final judgement at the date of cancellation.
- In the case of customs offences, the total cancellation of import or export taxes shall extinguish the customs criminal action in the case of fines the amount of which is determined on the basis of such taxes, the antecedent not being registered, insofar as there is no final judgement on the date of the acceptance of the System.
- In the case of offences provided for in the Customs Code, the cancellation of the minimum fine established for those offences shall extinguish the customs criminal action and the antecedent shall not be recorded.
It would not be possible to regularize by means of compensations, only by cash payment or by means of a payment facilitation plan for tax obligations.
b) Expiration
The expiry of the payment facilitation plan would entail:
- the resumption of criminal tax or customs proceedings.
- the Federal Administration of Public Revenues to file the corresponding criminal complaint.
- the beginning of the computation of the criminal statute of limitations for tax and/or customs offences.
c) Benefits according to the form of payment and the date of accession:
- Cash payment and adherence to the Scheme within the first sixty (60) calendar days from the date of entry into force: remission of fifty percent (50%) of the compensatory and punitive interest accrued as of the date of adherence to the Scheme.
- Payment facilities plan and adherence to the Scheme within the first sixty (60) calendar days from the effective date: remission of thirty percent (30%) of the compensatory and punitive interest accrued as of the date of adherence to the Scheme.
- Payment facilities plan and adherence to the Scheme from sixty-one (61) calendar days from the effective date and up to one hundred and twenty (120) calendar days from the effective date: remission of ten percent (10%) of the compensatory and punitive interest accrued as of the date of adherence to the Scheme.
In all the above-mentioned cases, one hundred percent (100%) of the fines applied would be waived.
The compensatory and/or punitive interests corresponding to the fiscal obligations cancelled prior to the entry into force of the present System will be fully waived.
- Changes to the Personal Assets Tax
The Personal Assets Tax would also receive a substantial modification according to the Bill. A new “Special System for Payment of Personal Assets Tax” (REIBP, for its Spanish acronym), of optional and individual adhesion, would be introduced, whereby individuals, undivided estates, as well as commercial companies and trustees acting as substitute responsible persons, would have to consider the net worth status achieved according to the financial year closed before December 31st, 2023.
The right of option to join the new system would operate until February 29th, 2024.
The rate to be paid by subscribers to the new system would be 0.75% for individuals and undivided estates, and 0.5% for commercial companies and trustees.
Payment of the tax would consist of an initial disbursement of 75% of the amount of the tax to be made by February 29th 2024, and the remaining percentage by April 30th 2024, to which must be added compensatory interest at 125% of the interest rate applied by the Central Bank to 30-day fixed terms between January 1st 2024 and the day before the date of the initial payment of 75% of the tax.
Taxpayers may deduct from the payment of the tax all tax credits for this tax arising during the 2023 fiscal year.
Among the benefits to be enjoyed by taxpayers who choose to join the regime, the following can be highlighted:
a) Exclusion from Personal Asset Tax for fiscal years 2023 to 2027
Taxpayers opting to join the REIBP would be excluded from any obligation under the Personal Property Tax rules for the tax periods pending until the expiry of the regime.
This exclusion covers all aspects of Personal Asset Tax.
b) Fiscal Stability
Taxpayers opting to join the REIBP would enjoy tax stability for 12 years, starting on 1 January 2028, with respect to Personal Assets Tax and any other national tax created that is intended to tax all or any of the taxpayer’s assets beyond the maximum tax burden set out in the Bill.
If, for any reason during the tax stability period, the tax burden arising from one or more taxes levied directly on the estate or on any asset of a taxpayer entitled to apply the stability benefit exceeds the limit provided for, the taxpayer would be entitled to offset against such estate taxes or against any other national tax in an amount equal to the difference between the excess tax(es) payable and the maximum estate tax.
