The Government extended the deadline established in the personal property tax for repatriation for the fiscal period 2023, until April 30, 2024. The decision was expressed through decree decree 281, published in the Official Gazette
This March 31, the deadline to carry out the repatriation of assets located abroad established in the Personal Property Tax law expired.
This repatriation will allow access to the reduced rates in the declaration corresponding to the fiscal period 2023. It is worth mentioning that the sworn declarations of the Income Tax and the Tax on Personal Assets of human persons expire in mid-June 2024.
Let us remember that since 2017 the regulations punish possession of assets abroad with higher rates. However, repatriation is an alternative to be able to access rates without increase for assets located abroad.
In order to carry out the repatriation, it is necessary to previously open a special account in Argentina – “Savings Fund Repatriation of Funds – Personal Assets Law 27,541” in any banking institution. Once the account is opened, it must be entered into the country through a bank deposit between January 1 and March 31 of each year, inclusive:
- holdings of foreign currency abroad and
- the amounts generated as a result of the realization of financial assets located abroad,
together and at least equivalent to FIVE PERCENT (5%) of the total value of the assets located abroad.
FINANCIAL ASSETS CONSIDERED ABROAD
Financial assets located abroad will be understood as the holding of foreign currency deposited in banking and/or financial and/or similar entities abroad; corporate participations and/or equivalents (private securities, shares, quotas and other participations) in all types of entities, companies or companies, with or without legal personality, incorporated, domiciled, based or located abroad, including sole proprietorships; rights inherent to the character of beneficiary, trustee (or similar) of trusts (trusts or similar) of any type constituted abroad, or in foundations of private interest abroad or in any other type of assets with a similar impact located, established, domiciled and/or incorporated abroad; all types of financial instruments or securities, such as bonds, negotiable obligations, representative securities and certificates of deposit of shares, shares of common investment funds and other similar securities, whatever their denomination; credits and all types of rights from abroad, susceptible to economic value and any other type provided for in the regulations.
The following are not considered assets abroad, according to queries made to the treasury:
- Argentine bonds deposited in foreign accounts
- Negotiable obligations and ADR of Argentine companies
To obtain the benefit, the funds must remain deposited until December 31, inclusive, of the calendar year in which the repatriation would have occurred. However, they may be used for: a) their sale in the free exchange market (at the official exchange rate), through the financial entity that received the original transfer from abroad, and other investments such as productive investment trusts that establishes the Investment and Foreign Trade Bank and specific common investment funds regulated by the CNV, without these destinations affecting the obtaining of the benefit.
Source: Ambito
