Special Regime for Paying Personal Assets Tax Now Regulated

Decree 608/2024 regulated the Special Regime for paying Personal Assets Tax (REIBP) and the amendments to the Personal Assets Tax, established in Title III of Law 27743.

 

I. Special Regime for paying Personal Assets Tax

 

1. Adhesion of non-residents. Individuals who as of December 31, 2023, have not been tax residents in Argentina, but had previously been so, may adhere to the Regime, acquiring again their tax residence in Argentina as from January 1, 2024.

 

Regardless of the moment in which the conditions for such persons to once again lose their tax residency according to the Income Tax Law are verified, this will not be effective before January 1, 2025.

 

2. Requirements to access the Regime. Individuals and residents in Argentina may adhere to the REIBP for the assets that have not been regularized under the scope of the Assets Regularization Regime. If they had not adhered to the REIBP, the liquidation of the Personal Assets Tax for the tax period 2023 would result in a determined tax.

 

If the taxpayer chooses to adhere to the Regime for the assets that have not been regularized, they must also adhere to the Regime for the assets that are regularized. Also, if the taxpayer decides not to adhere to the Regime for the assets that have not been regularized, they will not be able to adhere to the Regime for the assets that are regularized.

 

3. Periods substituted. The taxpayers that adhere to the REIBP will consider the corresponding Personal Assets Tax substituted:

 

• For the assets that they have not regularized under the Assets Regularization Regime: the tax periods 2023, 2024, 2025, 2026, and 2027.

 

• For the assets regularized under the Assets Regularization Regime: tax periods 2024, 2025, 2026, and 2027.

 

4. Deadlines and conditions. The terms to access to the REIBP, prepay, and determine the applicable tax rates are subject to whether or not the assets were externalized under the Assets Regularization Regime.

 

• For the assets that have not been regularized under the Assets Regularization Regime of Title II of the law, the adhesion deadline is extended up to September 30, 2024, inclusive. The rate applicable to the taxable base will be 0.45%. The initial payment must be made on the date on which the filing and payment of the Personal Assets Tax for the 2023 tax period of individuals and undivided estates is due.

 

• For the assets regularized under the Assets Regularization Regime, until the due date for filing the affidavit corresponding to Stage 3 of the Assets Regularization Regime, which is currently until April 30, 2025. The rate applicable to the taxable base will be 0.50%. The initial payment must be made up to the deadline for filing the declaration of adhesion and the mandatory advance payment of Stage 3 of the Assets Regularization Regime, currently set for March 31, 2025, only for the assets for which the taxpayer adheres.

 

To determine the taxable base, the value of the total assets regularized in the different Stages will be considered converted to USD, at the Banco Nación Argentina buying exchange rate  of the last business day prior to the date of filing the last affidavit.

 

5. Tax determination. Tax credits, certain payments on account, withholdings and reverse withholdings, and freely available credit balances computable to the 2023 tax period may be computed for the assets that have not been regularized under the Regularization Regime.

 

6. Initial payment. If the taxpayer does not make an initial payment, they will not obtain the benefits of the Regime. If the taxpayer makes an initial payment of less than 75% and chooses to renounce the Regime, this payment may be credited for other taxes for own obligations.

 

7. Donations. Donations or onerous transfers for a value lower than the market value of the property to an individual adhered to the Regime will be subject to an additional tax. To be subject to the tax, the property must have been accepted or acquired before December 31, 2027, inclusive, the person donating or transferring the property must not have adhered to the Regime, and must be a relative within the fourth degree of consanguinity (ascending or descending). The additional tax rate will be 0.45% or 0.50%, depending on whether the donee or acquirer joined the Regime and/or externalized assets.

 

II. Personal Assets Tax

 

The Decree establishes tax rate scales for complying taxpayers, between the following ranges according to the total value of the assets exceeding the non-taxable minimum:

1. 1. 1. 2023: from 0.25 % to 1.00 %
      2. 2024: from 0.25 % to 0.75 %
      3. 2025: from 0.25 % to 0.50 %.

 

Complying substitute taxpayers will be taxed in the tax periods 2023, 2024, and 2025 at the rate of 0.375%. For the benefit to be applicable, the companies must not have regularized assets under the Assets Regularization Regime and must have filed and paid in full by December 31, 2023, the tax returns for the tax periods 2020, 2021, and 2022, if applicable.