Changes to the Real Estate Transactions Register

AFIP General Resolution No 2168/2006 created the Real Estate Transactions Register (the “Register”), to which those people who engage in the buying and selling and leasing of real estate must sign up. The Register, which became effective on March 16, 2007, was recently modified by AFIP General Resolution No 2262/2007, published in the Official Gazette dated June 4, 2007 (the “Resolution”).

The Resolution made certain amendments to AFIP General Resolution No 2168/2006, namely and most importantly a change in the obligation to sign up to the Register for those people who realize

(i)           brokerage activities in transactions carried out within the framework of a court auction;

(ii)           rentals, on one’s own account, provided that the rent received for said activity does not exceed the limit of A$ 8,000 per month or A$ 96,000 per annum, since neither are considered as transactions carried out on a frequent basis.

Likewise, the Resolution includes those people who are engaged on developing real estate constructions among those who must sign up to the Register. But even then, those who, during the course of the same fiscal year, carry out up to three buying, selling or rental transactions, as long as the aggregate amount of those deals does not exceed A$ 200,000, are exempt from the obligation to register.

It should be noted that those people who are obliged to sign up to the Register, and who fail to do so, will be liable to the sanctions contained in Law No 11,683 of Fiscal Procedures.

The people listed in the Register can be checked on the Administración Federal de Ingresos Públicos (Argentine Federal Revenue Administration) webpage (http://www.afip.gov.ar).