On November 4, 2024, Decree No. 864/24 (the “Decree”) was published, which establishes an extension for the dates of the Asset Regularization Regime, provided for in Title II of Law No. 27,743. This regime allows tax residents in the country until December 31, 2023, and non-resident individuals who had previously been tax residents, to regularize assets both in the country and abroad. The regime is divided into different stages, in which different actions must be performed, such as the adhesion manifestation, the mandatory advance payment, the presentation of the sworn statement and the payment of the special regularization tax.
Through this decree, the National Executive Power has exercised its power, granted by Law No. 27,743, to extend the terms established for the three stages of this regime, with the purpose of allowing a greater number of persons to adhere to the regularization regime. Also, the Executive is authorized to extend the terms until July 31, 2025.
In addition, Decree No. 864/24 establishes that, by virtue of the new extended dates, subjects may regularize funds in accordance with the provisions of Chapter V of Law No. 27,743, which regulates special cases of exclusion of taxable base and payment of the excise tax. This regularization of funds may be made between November 1, 2024 and November 8, 2024, even if funds have already been regularized before this date.
The Decree also clarifies that those funds that are regularized within this extension period must be kept in special accounts or be destined to the investments authorized by the regulations until November 8, 2024. If the total amount of the externalized funds does not exceed USD $100,000, they may be withdrawn without being subject to any withholding as from November 9, 2024. However, if the amount exceeds that amount, the funds must be kept in the special accounts or continue to be used for the purposes authorized by law until December 31, 2025, in order to avoid a 5% withholding tax.
In addition, the Decree establishes that funds regularized until October 31, 2024 may be withdrawn as of November 1, 2024.
The Decree will be effective as of November 1, 2024.
