The tax valuations of real estate Personal Property Tax They will increase this year 2,831.18% compared to 2017, as provided by the regulations governing the tax. This is the inflation accumulated during that period. In more technical terms, The valuation adjustment index will be 28.3118.
In the case of the City of Buenos Aires, if there is no resolution from the Federal Administration of Public Revenue (AFIP), this index must be multiplied by 4. It is because local legislation indicates that to establish the tax value of houses and apartments it must be quadrupled. This is an arbitrary measure established a few years ago with the purpose of collecting more for the Real Estate Tax.
The new update index was established after the INDEC announced the 2023 inflation, which reached 211.1%. That is to say, from one year to the next, the value of the properties will grow for the treasury.
According to Sebastián Domínguez, partner of SDC Asesores Tributarios”the Personal Property Tax Law establishes that to value a property, it must be taken the acquisition cost or value on the date of entry into the updated equity deducting the corresponding amortization (residual value)”.
“This value cannot be less than the tax base established for the payment of real estate taxes or similar taxes in force as of December 31 of the year for which the tax is settled or the tax value determined on that date,” the tax expert clarifies.
Domínguez points out that “Currently, in accordance with Law 27,480, the tax base or tax value as of December 31, 2017 updated by the CPI must be taken as of December 31 of the year in which the tax is settled.”
“That is, the highest of the three values (residual value, tax base for real estate taxes, fiscal value) must be taken for the purposes of valuing the properties,” he explained.
He The tax advisor specified that for 2023, if the property is used as a residence, a non-taxable minimum of $136,887,041.42 is taken. If it exceeds that value, the surplus is considered together with the remaining assets (including other real estate).
Why is it different in CABA?
In the City of Buenos Aires Real Estate Tax regulations establish that the tax valuation cannot exceed 20% of the market value. But In December 2012, the Legislature created the Contributory Sustainability Unit (USC)an index that the government can use to modify tax values. The arbitrary value is 4.
There is a conflict with AFIP. As will be remembered, during the previous administration the organization considered that to value CABA properties the same procedure as for the Real Estate Tax should be followed.. Therefore the Personal Assets index only in the Federal Capital it is 113.2478, or what would be equivalent to an inflation of 11,324.78%.
How much is paid for Personal Property
The rates of the Personal Property Taxs range from 0.5% to 1.75%. In the case of goods abroad they rise to 2.25%.
In tax package that the Government plans to send to Congress after the withdrawal of the omnibus law. modifications to the Personal Property Law are contemplated eliminating discrimination of assets located in the country and outside and decreasing the maximum rate at 1.50%.
In addition, A Special Regime is contemplated that would allow taxation of the tax at the rate of 0.75% multiplied by the coefficient 5 to be freed from paying the tax until Fiscal Period 2027, inclusive, and with a fiscal stability clause in property taxes.
Source: Ambito
