January 20, 2022 4:12 pm

Who should pay the Personal Property tax and how much will be the tax burden

This year, the obligation for the Personal Property tax corresponding to 2021 must be settled. law 27,667, published in the Official Gazette of last December 31, those who have assets that are valued – according to the specific rules that govern this tax – must pay at least $ 6 million. The increase in this non-taxable minimum, which due to the 2020 tax had been $ 2 million (the same as in the previous year) It was approved at the end of 2021, despite strong initial resistance from the ruling party to modifications. Keeping the tax base frozen (something that happened for several years until 2015) causes more people to start paying taxes only due to the effect of inflation and the rise in the dollar, even without their wealth having really improved.

The non-taxable minimum was $ 6 million. And the value up to which the home is exempt is $ 30 million. The equity considered is that existing as of December 31 of the year to which the tax corresponds.

The main assets achieved by Personal Assets are:

The real estate. They are declared either at the acquisition value (translated into pesos according to the exchange rate at the time of the operation), to which a percentage is periodically deducted, or at the fiscal value of December 2017 updated by the Consumer Price Index of the Indec (of both amounts, the highest is recorded). The tax value is determined by the jurisdictions for local taxes. In the case of housing, it is paid for the value that eventually exceeds $ 30 million.

The vehicles. They are taxed until the fifth year from their acquisition; AFIP publishes a list of values.

Holdings in bills (pesos, dollars or other currency). The price of the currency as of December 31, buyer type, of Banco Nación is considered (the AFIP publishes the value).

The balances of some investments.

The goods abroad.

Works of art and antiques.

The patrimonies of companies or sole proprietorships.

The credits.

Ships and aircraft and other types of vehicles.

The balances of current accounts and virtual wallets.

Cryptocurrency holdings (According to several tax experts, although the AFIP has not yet been issued).

Household goods. According to the law, a value of not less than 5% of the value of the patrimony in the country and of the real estate abroad is declared.

Liabilities cannot be discounted. And that implies a distortion, as the tax experts agree, because the tax burden is applied on gross assets and not on net assets. The exception is debt taken to buy a home, but since it is exempt (up to $ 30 million), the deduction loses practical effect.

They are outside the tax the balances of time deposits and savings banks; securities, bonds and other securities issued by the Nation, the provinces, the municipalities and the Autonomous City of Buenos Aires; the individual accounts of retirement insurance; cooperative social quotas; intangible assets; rural properties whose owners are human persons and undivided successions.

As of the 2021 tax, exemptions arising from law 27,638, that has pending regulations. This regulation establishes the release of the tax for negotiable obligations in pesos placed by public offering and with the authorization of the National Securities Commission; instruments in pesos intended to promote “productive investment” that are defined by the Executive Power, and shares of investment funds and trust debt certificates of trusts placed by public offering, mainly made up of certain assets. These definitions arise from the aforementioned law and Decree 621. However, A joint resolution of the AFIP and the CNV is pending.

How much do you pay for the tax? Personal Property has, according to the new law, a table of six aliquots for the goods located in the country. In the first step, when assets exceed the non-taxable minimum (of $ 6 million) by up to $ 3 million, 0.5% is paid on that excess value. For example, for an equity of $ 8 million, $ 10,000 will be paid (see examples in the table that accompanies this note), which is 0.5% of $ 2 million (the result of subtracting the $ 6 million from $ 8 million).

In the second step, with an equity that exceeds the non-taxable minimum in an amount between $ 3 million and $ 6.5 million, a fixed amount of $ 15,000 is paid plus 0.75% of the equity figure that exceeds $ 3 million . Then, the aliquots are increasing, as the value of the declared goods increases. The last one is the one that will be applied when the assets exceed $ 300 million; in such case, $ 4,181,250 is paid, plus 1.75% of what exceeds $ 300 million. The new law established, as a novelty, the validity of two new aliquots: the one already mentioned for patrimonies greater than $ 300 million, and another for when assets total more than $ 100 million and up to $ 300 million. In these cases, the tax is increased compared to the previous situation.

An emergency law passed in late 2019 determined a temporary mechanism for the validity of aliquots aggravated by assets outside the country, that were charged for the 2019 and 2020 tax. Now, with a legislative strategy that there are those who question (the issue had been rejected in one bill and included in another, all within the same legislative period), it was provided that this increased taxation be permanent.

That point and the rise in the tribute for estates of more than $ 100 million, are the aspects for which the bill was rejected by the opposition, that questioned before the Justice the validity of the Senate session in which it was approved. The highest rate for goods abroad reaches 2.25%, and it is for the cases in which the patrimony (in the country and abroad) exceeds $ 18 million. Aggravated taxation can be avoided with a partial repatriation of assets under the conditions set by decree 912/2021.

As of fiscal year 2022, Each year, three variables will be updated according to inflation: the non-taxable minimum, the exempt value of the home and the amounts in the table that define what rate is paid according to how much the goods are worth. On this last point (the one in the table), for 2021 there are no changes, but the values ​​that governed to calculate the 2019 and 2020 tribute are repeated.


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