Tax Bill introducing asset regularisation regime sent to Argentinian congress

Wednesday, 03 April 2024
The Argentinian Executive Branch has sent a Bill (Law on Palliative and Relevant Fiscal Measures/Ley de Medidas Fiscales Paliativas y Relevantes) to the National Congress of Argentina, proposing new fiscal measures.
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Among other measures, the Bill proposes to introduce an assets regularisation regime for individuals, undivided estates and corporations. Taxpayers adhering to the regime would have until December 31, 2024 to declare their assets and pay a flat rate of five, ten or 15 percent on the value of assets exceeding USD100,000. A similar regime was proposed to congress in December 2023, however that Bill was not approved and was withdrawn.

The regime would apply regardless of whether such taxpayers were considered tax-resident in Argentina as of December 31, 2023. Individuals who are not Argentinian-tax-resident but have assets in the country or Argentinian-source income may also take part in the regime.

Assets subject to the regime include local or foreign currency, real estate, shares, securities and cryptocurrencies.

The Bill also proposes a special regime for tax on personal assets, to apply to all tax periods until December 31, 2027. Further, it repeals the real estate transfer tax for individuals and undivided estates.

Separately, the National Senate of Argentina has approved three international tax and investment agreements. Agreements with China and Turkey would put in place a treaty to avoid double taxation and prevent tax evasion and avoidance. The agreement with the United Arab Emirates is for the reciprocal promotion and protection of investments.

The Argentinian Chamber of Deputies must now discuss and approve the treaties before they can enter into force.

Sources