Argentina: Tax Modifications (Law 27,667)

 

Law 27,667 introduced modifications to the Tax on Personal Assets and the Income Tax, which we summarize below:

 

1. Personal Property Tax

• The non-taxable minimum is increased to $6,000,000 (previously $2,000,000).
• The maximum value of real estate for home-rooms that are not taxed is raised to $30 million (previously $18,000,000).
• The rate scale for assets in the country is modified (adding two new rates of 1.50% and 1.75% for taxed assets exceeding $100,000,000 and $300,000,000, respectively). The new scale is as follows ( please see first table to the right of this page ).

• The following scale of aliquots for goods abroad (applicable on the total value that exceeds the non-taxable minimum not computed against goods in the country) remains unchanged ( please see second table to the right of this page ): 

• During the term of the lien, the power to reduce the rates for goods abroad is delegated to the National Executive Power, in the case of repatriation of financial assets.
• The annual and automatic update of the non-taxable minimum is established, of the maximum value of real estate destined for residential homes not taxed and of the aliquot scales (based on the variation of the General Level Consumer Price Index, corresponding to the month of October of year prior to the adjustment with respect to the same month of the previous year).

 

2. Income Tax

The National Executive Power is empowered to increase the amounts of remunerations and SAC on which Income Tax must not be withheld and the amounts of the additional deduction that increases the special deduction for certain remunerations.

 

3. Validity

 These provisions are applicable for fiscal periods 2021 and following, except for the provisions of point 2 above, which will take effect from fiscal period 2022.

 

For further information, contact:

Dr Andrés Willa , Managing Partner

Estudio Willa, Buenos Aires

e: awilla@estudiowilla.com

t: +54 9 11 41872011

 

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