Argentina’s Congress recently approved changes to the wealth tax through a new tax reform law. ÌýThe tax reform had been known as “El Proyecto de Ley de Medidas Fiscales Paliativas y Relevantesâ€� (Fiscal Package Law or "Palliative and Relevant Tax Measures" in English)1 and is now enacted in law. ÌýThese changes are retroactively in force for FY 2023.2, 3
In this GMS Flash Alert we focus on the changes to the wealth tax.
It is important to note that individuals subject to taxation in Argentina on their worldwide assets will have a reduced tax burden, as all the changes reduce wealth tax liability.Ìý For those companies that cover wealth tax for their mobile employees under their international assignment policies, they should experience a reduction in their international assignment costs.
Taxpayers considered as tax residents have compliance obligations around informing the fiscal authorities of their “wealthâ€� (the value thereof) as of December 31 of each year and paying taxes in Argentina on their worldwide assets. Ìý(For related coverage, see GMS Flash Alert 2024-098, 24 April 2024.)Ìý Under this regime, the same tax rates apply to assets held in Argentina and abroad.ÌýÌý
FY 2023 Asset Range (ARS) | |
Range | Tax Rate |
0 to 13,688,704.14 | 0.50% |
13,688,704.14 to 29,658,858.98 | 0.75% |
29,658,858.98 to 82,132,224.86 | 1.00% |
82,132,224.86 to 456,290,138.07 | 1.25% |
456,290,138.07 to 1,368,870,414.25 | 1.50% |
Source: ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in Argentina
Ìý
Pertinent to the news reported in this GMS Flash Alert, there could be advantages if the taxpayer decides to join a special regime for wealth tax until July 31, 2024 inclusive. Ìý(We will issue very shortly a separate GMS Flash Alert on this matter.)Ìý This date could be extended until September 30, 2024, inclusive (for related coverage, see GMS Flash Alert 2024-098, 24 April 2024). Ìý
Questions and concerns about what the scope of the wealth tax is, which taxpayers are liable, and the reporting/declaration, filing, and payment responsibilities, should be addressed to a qualified tax professional or a member of the tax team with ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in Argentina (see the Contacts section).ÌýÌý
1Ìý See a (in Spanish) from the Oficina de Presupesto del Congreso.
2 ÌýPublished in the online BoletÃn Oficial de la República Argentina: .
3 ÌýStill pending statutory measures and additional general regulations from the different authorities involved.
The information contained in this newsletter was submitted by the ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International member firm in Argentina.
GMS Flash Alert is a Global Mobility Services publication of the ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø LLP Washington National Tax practice. The ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø name and logo are trademarks used under license by the independent member firms of the ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø global organization. ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International or any other member firm vis-à -vis third parties, nor does ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2024 ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø, ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø, una sociedad argentina y firma miembro de la red de firmas miembro independientes de ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø afiliadas a ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International Ltd, una entidad privada Inglesa limitada por garantÃa que no presta servicios a clientes. Derechos reservados.Ìý
