On December 21, 2021, the Chamber of Deputies approved the bill (hereinafter, the “Bill”) that amends the Personal Property Tax Law. It is expected that the Bill will be passed by the Upper House within the next few days in order to become law.
Among the most relevant amendments, the Bill increases the non-taxable minimum to $6,000,000; and raises to $30,000,000 the amount up to which real estate intended for home-occupation would not be taxed.
Likewise, the Bill modifies the scales foreseen in the Personal Property Tax and adds two levels for those assets exceeding $100,000,000 and $300,000,000 with rates of 1.5% and 1.75% respectively. With the new additions provided by the Bill, the progressive tax rates for assets located in the country would be as follows:
| Total value of assets exceeding the non-taxable minimum | They will pay $ | Plus the % | On the excess of | |
|---|---|---|---|---|
| More than $ | to $ | |||
| 0 | 3.000.000 inclusive | 0 | 0.50% | 0 |
| 3.000.000 | 6.500.000 inclusive | 15.000 | 0.75% | 3.000.000 |
| 6.500.000 | 18.000.000 inclusive | 41.250 | 1.00% | 6.500.000 |
| 18.000.000 | 100.000.000 inclusive | 156.250 | 1.25% | 18.000.000 |
| 100.000.000 | 300.000.000 inclusive | 1.181.250 | 1.50% | 100.000.000 |
| 300.000.000 | onwards | 4.181.250 | 1.75% | 300.000.000 |
Additionally, the Bill incorporates to the Personal Property Tax Law the table of tax rates for foreign assets that was provided for in Decree 99/2019. It is highlighted that the total value of the assets in the country and abroad must be computed for the purpose of calculating the applicable rate with respect to those taxed assets from abroad.
| Total value of assets exceeding the non-taxable minimum will pay $ | They will pay $ | |
|---|---|---|
| Plus the % | to $ | |
| 0 | 3.000.000 inclusive | 0.70% |
| 3.000.000 | 6.500.000 inclusive | 1.20% |
| 6.500.000 | 18.000.000 inclusive | 1.80% |
| 18.000.000 | onwards | 2.25% |
In this way, the discussions and interpretations about the expiration of the temporary delegation to the Executive Branch made by Law No. 27,541 (Social Solidarity and Productive Reactivation Law) would be resolved and the increased rates for goods abroad would be maintained.
