On October 7, 2016, the Argentine Tax Authorities (AFIP) issued Resolution No. 3943 (the “Resolution”), that partially modifies Resolutions No. 3919 and 3920 which regulate the Tax Amnesty Regime established by Law No. 27260.
First, the Resolution conforms to Article 10 of Resolution No. 3919 that regulates the case of individuals who have currency or bonds held overseas and decide to apply to the Tax Amnesty Regime. For this purpose, they have to disclose their deposit in financial entities, safe-keeping agencies, or any other stock holders from overseas. They also have to prove the deposits, registration or possession under the name of the spouse, parent or third party with the applicable documentation filed with AFIP.
The spouse, parent, third party, or their legal representatives, have to confirm the disclosure through the AFIP online procedure. If the individual that has to disclose the assets is the spouse, parent or third party, he also has to prove the financial diminution arising from the reversal of said assets.
More particularly, the Resolution also establishes that if the third party disclosing the assets is in charge of a business entity, or a company organized in Argentina, or a single person company organized in Argentina, and does not have a Tax Identification Number (C.U.I.T.), the consent must be given by any other representative who has a CUIT.
Before the deadline for the submission of the affidavit regarding the income tax of 2017 fiscal period, the assets must be registered under the name of the declarant. The Resolution provides that the abovementioned provision will not apply to bank accounts held by more than one person, even if one of them has not disclosed the total amount deposited.
In addition, the Regulation deals with the situation of assets under co-ownership, in which case the co-owners must give their consent. Finally, those who are assignors do not need to comply with the Information Regime established by Resolution No. 2371.
With regard to the assessment of real estate, article 18 of the Resolution establishes that in the case of real property located in Argentina, the assessment certificate issued by the real estate agent may be done by any other certified professional authorized to issue the certificate. If the real property is located abroad, the assessment must arise from two certificates, which can be issued by a real estate agent, appraiser, or any other qualified person, insurance company or financial entity.
The Resolution partially modifies the procedure for the disclosure of national or foreign currency deposited in Argentina (included in Annex II). It adds the possibility of making more than one registration and deposit in open accounts.
Moreover, the Resolution sets forth new regulation regarding Supplementary Affidavits which involve a new liquidation of the “Special Tax” considering the total amount of the disclosed assets. Based on the total value of the assets disclosed during 2016, and until March 31, 2017, when the amount exceeds ARS 800,000, the following aliquots will apply, except cases of real property:
- 10% over the assets disclosed until December 31, 2016, and 15% over the assets disclosed after January 1, 2017.
- 15% over the assets disclosed until December 31, 2016 that have not exceed ARS 305,000.
In addition, the Resolution modifies some aspects of Resolution No. 3390 regarding the “Regime of Regularization of Tax, Social Security and Customs Obligations” expired as at May 31, 2016. The Resolution also modifies some obligations included in the Regime. First of all, fines related to infractions committed until May 31, 2016 are included in the Regime. Moreover, the Resolution includes the obligations regarding the affidavits for the income tax and for the personal assets submitted by individuals after May 31, 2016 for fiscal periods expired at that date.
Finally, the Resolution includes a new article which establishes the following:
“The benefit of remission will also apply to penalties for material infractions committed until May 31, 2016 that are neither final nor paid at the date in which Law No. 27260 entered into force, corresponding to obligations included in easy payment plans which are in force and made before July 23, 2016. However, the expiration of the plan will cause the loss of the benefit, established in article 55 of Law No. 27260, in proportion to the pending debt at that moment.”
- The Argentine Tax Authorities (AFIP) issued the regulation for the Tax Amnesty Regime (disclosure program) established by Law No. 27260.
- Regulation of Tax Amnesty under Decree No.895/2016.
- Argentina passes Omnibus Act.
- Amidst Rumours of a New Extensive Tax Amnesty, the Tax Authorities Increase the System of tax Payment Facilities.