The Personal Property Tax is an instant tax that taxes the asset situation as of December 31 of each year and includes updating mechanisms, market and quote values in order to determine the tax base on which it must be paid.
This scheme, in an inflationary context, generates an increase in the aforementioned tax base for the sole fact of possessing such assets, without considering the calculation of liabilities.
Of course it contemplates a non-taxable minimum (for 2023 it is $27,377,408.28) taxing the surplus based on a progressive scale. If you have assets abroad, there is a scale of differential rates, also progressive, that is applied depending on whether or not the financial assets from abroad are repatriated, for at least 5% of the total.
So much for a broad outline of the scope of the tax.
Personal Assets: what do you pay for?
Among the taxed assets there will be two property items that will have an important impact on the final result of the tax: the possession of foreign currency (generally dollars or euros) and urban real estate, not intended for residential purposes since if so they are exempt. if its valuation is equal to or less than $136,887,041.42 by 2023.
As of 12/31/22, the price of buyer type dollar It stood at $176.96 and the euro at $189.26. The same type of quote that will have to be used on 12/31/23 to value the holding of foreign currency, climbs to $805.45 per dollar and $889.38 for each euro, which is a 355% increase for the dollar and 370% for the euro.
Regarding real estate, until the Federal Office of Real Estate Valuations (O.Fe.VI) dictates the procedure and methodology that jurisdictions must use to determine their valuations, a special mechanism was established in the Personal Property Law to value real estate in the country, which is that the tax base cannot be lower than the tax base to determine real estate taxes (tax valuation) in force as of 12/31/2017 adjusted by a coefficient (IPC) that for the period fiscal 2022 was 9,092 and for fiscal year 2023 it is 28,312, the comparison of which results in an increase of 211%.
It follows from all of this that both assets held by individuals and undivided estates must support a significant increase in the tax base for the 2023 fiscal period, which will expire in mid-June.
The changes planned in the omnibus law being discussed in Congress do not refer to the aforementioned assumptions but, if approved, will have modifications regarding foreign assets.
Source: Ambito
