“The original regulation, from the year 2000, contemplated a minimum term of 10 years so that the tax benefits: that is to say that, if a property was financed in leasing for 9 years, you could not take the tax benefits. With these benefits, all the fees you pay per month can be spent as an expense to deduct income tax, for example. And, for that reason, you have an accelerated amortization of the property ”, he explained to Ámbito Nicholas Sciolipresident of ALA.
“The historical problem was that, for banks, it is difficult to define the rates to ten years. And also, if they wanted to put a variable rate, no private company or SME was going to want to take it. In practice, the leasing real estate existed, but it was inoperative. did something very occasionalbut not as a normal use and custom, as it happens in other countries,” added Scioli, who stressed that it is “an instrument for the growthwhich is going to have a tax benefit that today, for example, a mortgage loan does not have”.
Real estate leasing: how it works
As explained by the ALA, the original rule established a minimum financing term of ten years based on the useful life of the asset for a real estate lease to be set up and thus be able to take the benefits. tributariesa situation that prevented setting a reference rate.
This reduction of the term to five years will allow, with this instrument, among other operations for productive purposes, the establishment of companies in industrial parks.
“With the industrial parks, today there are no instruments available for financing the land. So, with leasing, the entity buys the land at the request of the industry and the industry is going to tell it to build the shed, for example. Once everything is built, the entity finances the draft turnkey with a lease. This is what can be done. I always have to buy a part, like the land, for example. This tool has this possibility, plus the tax benefits”, added Scioli, who explained: “It is aimed at legal entities, projects of production, such as warehouses, offices, logistics center, etc. Today it is a concrete possibility that private banks come out to offer real estate leasing at this term. Is a historical measure. The leasing sector would never have thought that this would be a reality”.
“The new regulations were worked on in conjunction with the Tax Policy Secretariat, in charge of Robert Ariasbased on the proposal brought to it by the financial institutions and companies in the sector grouped in ALA, which consisted of shortening the financing terms so that real estate leasing could have lifetime in the country”, pointed out from ALA.
In parallel, Scioli explained, the entity is working with the authorities of different provinces to eliminate a kind of double taxation in the stamp tax and put this cost on the same terms as a mortgage loan.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
