AFIP issued the regulation for the Tax Amnesty Regime (Law No. 27260) by means of General Resolution No. 3934 – issued on August 23, 2016 – thus supplementing AFIP General Resolution No. 3919 – issued on July 28,2016 – (the “Regulation”).
First, the Regulation clarifies that the enactment day of Law No. 27260 (the “Law”) is July 22, 2016 (i.e. the Date of Preexistence of Assets). This law establishes the “tax amnesty regime” (the “Regime”). Taxpayers may enter the system between August 1, 2016 and March 31, 2017 inclusive.
The residence requirement established by law must be verified as at December 31, 2015 or prior to 22 July, 2016, for individuals.
With regard to the assets that may be subject to the Regime, the Regulation clarifies that acquired real property, land, construction sites and improvements may be subject to the Regime.
In the event the assets are registered under the name of the spouse or a third party, the Regulation provides that that the spouse or third party must give their consent to the declarant, and justify the patrimonial decrease, if any. Moreover, said assets must be registered under the name of the declarant before the deadline date for the submission of the affidavit for the income tax of the 2017 fiscal period ( April 2018 approximately).
The adhesion to the Regime will be made on AFIP webpage where the declarant makes an affidavit. In addition, the declarant must keep his electronic tax domicile and tax domicile up-to-date.
With regard to foreign entities, the Regime establishes that taxpayers must disclose their interest in said entities (corporations, trusts, foundations, associations, or any other entity organized abroad), subtracting from the amount of said ownership the amount corresponding to the assets disclosed by individuals, assets of which have been part of the entities´ total assets. The declarant must provide AFIP with the documentation evidencing ownership.
In relation to the assessment of assets subject to the disclosure, the Regulation establishes the following:
- When the disclosure involves interest in business entities organized in Argentina (please remember that Section 40 of the Law provides that interest in said entity must be assessed considering its proportional value, so that the total amount of the entity´s assets is represented) the required information must arise from the balance sheet closed at January 1, 2016 in accordance with the financial regulations in force. Notwithstanding this, in the event that the entity holds real property, said property must be assessed taking into account the market value. In the case of foreign entities, the required information must result from a special balance sheet made at July 22, 2016; and if the foreign entity has no obligation to make balances, interest in said assets must arise from a certificate signed by the foreign entity´s legal representative. The declarant must provide AFIP with said documentation.
- Shares, government bonds, and any other publicly traded security must be assessed taking into account the latest market price at July 22, 2016.
- With regard to real property, the acquisition is effective with the making of a deed, purchase agreement, or any other similar notarially recorded agreement, provided that the individual has possession of such property at July 22, 2016.
Real property will be assessed at July 22, 2016 and the assessment will be valid for 120 days from the issuance of the certificate, which shall be (i) issued by a licensed broker, in the case of real property located in Argentina (this may be replaced with a certificate issued by an Argentine bank), (ii) issued by a broker in the country where the assets are located, in the case of assets held abroad, in which case, two certificates must be made and the higher value pricing will be taken into account.
- Automobiles will be assessed in accordance with the assessment chart of tax on personal assets (acquired before January 1, 2016) or in accordance with the chart of the Argentine Vehicle Register (for automobiles acquired after January 1, 2016).
- Aircrafts, ships, yachts, etc. will be assessed in accordance with a certificate issued by an insurance company.
It should be mentioned that AFIP General Resolution No. 3934 – issued on August 23, 2016 – establishes that when the assessment cannot be made before the date of preexistence (July 22, 2016) either because of the asset´s nature or the market modalities, the assessment of the immediately subsequent date should be applied provided that it is held on a record with information not exceeding July 31, 2016. However, the date of preexistence of assets must be prior to July 22, 2016 and the conversion of foreign currency must be made in accordance with the buy rate at Banco de la Nación Argentina in force at July 22, 2016.
The special tax (“Special Tax“) may be canceled either jointly or separately with any of the following methods of payment:
- Electronic funds transfer (VEP),
- Bonar 17 and/or Global 17, or
- Wire transfer from abroad.
The adhesion to the Regime will be completed once payment of the Special Tax is registered with AFIP. The certificate of adhesion to the Regime will be sent to the electronic tax domicile of the taxpayer.
The Regulation entered into force on August 1, 2016.
