On November 29, 2016, the Executive Branch issued Decree No. 1206/16 (the “Decree”), which partially modifies Decree No. 895/16, and regulates the Tax Amnesty Regime (Law No. 27,260). This Decree was published in the Official Gazette on November 30, 2016, and entered into force on December 1.
First of all, the Decree establishes that the transfers made by those who declare assets owned by companies abroad, in relation to the assets registered under their name, will not be considered onerous for tax purposes and, therefore, will not be subject to any tax.
In addition, the Decree provides that individuals and undivided estates may declare assets abroad from companies in which they have an indirect participation. They may also declare company´s assets, if the declarant has an interest in another company which participates in it.
Under the Decree, the Tax Amnesty Regime means that, for fiscal purposes in Argentina, the disclosed asset will be considered to be owned by the declarant so long as it is part of his total assets.
Finally, the Decree incorporates a substantial change in what it is established in Law No. 27,260 since it enables the public official´ spouse, parents and emancipated children to adhere to the Tax Amnesty Regime provided that the declared assets were incorporated in their total assets before they assumed the public office.