The Executive Branch and the Argentine Tax Authority Regulate Assets Regularization Regime

Decree 608/2024 and General Resolution 5528/2024 of the Federal Tax Authority regulated the Assets Regularization Regime in Title II of Law 27743. Accordingly:

 

1. Requirements for residents to adhere to the Regime. The conditions Argentine residents must meet to adhere to the Regime include, among others, having a tax identification number with status “Active: without limitations,” and updating the code of the activity carried out.

 

2. Requirements for non-residents to adhere to the Regime. Individuals who as of December 31, 2023, do not have tax residency in Argentina, but previously did, may adhere to the Regime, in which case they would acquire again their tax residence in Argentina as from January 1, 2024.

 

To adhere to the Regime and comply with the tax obligations as new tax residents as from January 1, 2024, they must appoint a substitute responsible person, who must manage the registration of the service using the tax ID, as established by the General Resolution.

 

The loss of the tax residency will not take effect before January 1, 2025, regardless of the moment in which the conditions for such persons to lose their tax residency again are met in accordance to the Income Tax Law.

 

3. Deadlines for adhering. The manifestation of adhesion to the Regime must be submitted before March 31, 2025, inclusive, through “Portal Régimen de Regularización de Activos Ley N°27.743” with the tax ID and filling out the adhesion form F. 3320 there. Bear in mind that the Special Tax varies according to the applicable stage. The taxpayer must file the adhesion statement through F. 3320 if there are regularizing assets that, due to their nature or amount, do not require an advance payment.

 

The Executive Branch may extend the dates to file the adhesion statement and make the advance payment up to July 31, 2025, inclusive, provided that there are no more than three months between these dates.

 

4. Documents. The documents necessary to prove ownership of the assets to be regularized and their valuation as of December 31, 2023, must be filed together with the affidavit. If they are not filed, they are filed after the deadline, or they are incomplete or with errors and not corrected, the statement of adhesion to the Regime will be left void, and the taxpayer will be excluded from the benefits of the Regime.

 

5. Ownership. If the assets are deposited or registered in the name of more than one taxpayer and it is not possible to prove the portion of each, it will be understood that they own the assets in equal parts.

 

 

 

6. Valuation of Assets and Cryptocurrencies. The Resolution clarifies the criteria for valuating assets, including real estate, shares, and cryptocurrencies. 

 

For rural and/or urban real estate in Argentina, the minimum value for valuation will be four times the taxable base established for paying real estate taxes or similar taxes as of the date of regularization. The taxpayer may prove that the market value is lower.  For real estate located abroad, the minimum value will be the market value.

 

To establish the value of shares and equity interests, the financial statements of the last fiscal year closed before December 31, 2023 will be considered.  If the closing occurred on December 31, 2023, the financial statements as of that date will be considered. In both cases, the corresponding financial statements to be taken into account must be submitted to the consideration of the corresponding entity. The procedure to calculate capital increases/decreases will be the one established in the Personal Assets Tax rules.

 

Cryptocurrencies, crypto-assets, and other virtual assets will be considered to be located in Argentina if, as of the regularization date, they were under the custody and/or administration of a Virtual Assets Service Provider registered before the Argentine Securities Commission.

 

Their valuation will be calculated according to their market value as of December 31, 2023 or according to their acquisition value, whichever is higher, converted at the Regularization Exchange Rate. The Regularization Regime can be accessed when the assets are not under the custody and/or administration of an entity authorized for such purposes (either in Argentina or in countries not included in the FATF Gray or Black list), if they are transferred to a Virtual Assets Service Provider before September 30, 2024, and are kept there until that date.

 

For all tax purposes, the valuation of the assets and holdings under the Regime is the value of incorporation to the taxpayer's equity as of January 1, 2024.

 

7. Taxable Base. The taxable base will be determined considering the value of the total amount of the regularized assets in USD, as established in the regulations.

 

8. Special Regularization Tax. The Special Regularization Tax will be calculated on the total value of the assets to be regularized, and the conditions for the mandatory advance payment are mentioned. The advance payment must be made in USD by electronic funds transfer, for which purpose an Electronic Payment Form (VEP) F. 3323 must be prepared using the codes “Impuesto 1009, Concepto 027, Subconcepto 027.” Failure to make the advance payment in due time and form will cause the automatic lapse of the declaration of adhesion and will exclude the taxpayer from all the Regime benefits.

 

The Special Tax may be paid in ARS if taxpayers have included assets located in Argentina that are real estate, shares, participations and rights, securities or credits (detailed in items b), c), d) and or f) of article 24.1. of the law), if such assets are measured or expressed ARS. If so, to make the advance payment, the tax will be converted into ARS considering the USD at the Banco Nación Argentina buying exchange rate corresponding to the last business day before the date of payment.

 

The Resolution regulates the adhesion of taxpayers and their family members. For this, a franchise of USD 100.000 will be prorated among them.

 

9. Regularization of Cash. Deposit in special accounts. The cash regularized and deposited in special accounts, not subject to the Special Regularization Tax, must be kept in such special accounts unless used for the cases included in the regulation (paying the Special Regularization Tax and/or making its advance payment, financial instruments mentioned in the law, among others). Such funds will be excluded from the calculation basis and, as long as they remain deposited, they will not be included in the taxable base of the Special Regularization Tax. If the funds deposited in the special accounts are transferred to any other account before December 31, 2025, the Special Regularization Tax will be payable by withholding of 5% as a single and definitive payment when the regularized amount exceeds USD 100,000.

 

10. Exemptions and Obligations. Accounts used to externalize holdings of local and/or foreign currency in cash are exempted from the Tax on Credits and Debits in Bank Accounts.

 

11. Tax Return and Perfection of the Adhesion. Once the adhesion has been requested and the advance payment has been made, the assets for which the adhesion to the Regime is requested must be identified by submitting Affidavit F. 3321 together with the proof of ownership. The filing of the affidavit (which may be rectified within the Stage in which it is filed) will be perfected by paying the balance of the regularization tax, if applicable.