It is important to note that individuals subject to taxation in Argentina on their worldwide assets have the opportunity to reduce their tax rate by repatriating 5 percent of their foreign currency holdings from abroad.Ìý
In accordance with National Decree DR 281/2024, Argentina’s government approved the extended deadline to repatriate foreign currency holdings until April 30, 2024 (it had been March 31, 2024).1
WHY THIS MATTERS
More Details
Taxpayers considered as tax residents as of December 31 of each year have compliance obligations in relation to declaring their “wealthâ€� and paying taxes in Argentina on their worldwide assets. ÌýUnder this regime, different tax rates apply to assets held in Argentina compared to those held abroad. ÌýThe minimum nontaxable amount for fiscal year 2023 is ARS 27,377,408.28.
Wealth Tax Rates on Assets in Argentina (for fiscal year 2023)
FY 2023 Asset Range (ARS) | |
FROM - TO | Tax Rate |
0 to 13,688,704.14 | 0.50% |
13,688,704.14 to 29,658,858.98 | 0.75% |
29,658,858.98 to 82,132,224.86 | 1.00% |
82,132,224.86 to 456,290,138.07 | 1.25% |
456,290,138.07 to 1,368,870,414.25 | 1.50% |
1,368,870,414.25 and above | 1.75% |
Source: ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in Argentina
Wealth Tax Rates on Foreign Assets (for fiscal year 2023)
FY 2023 Asset Range (ARS) | |
FROM - TO | Tax Rate |
ÌýÌýÌýÌýÌýÌýÌýÌý Ìý0 to 13,688,704.14ÌýÌýÌý | 0.70% |
ÌýÌýÌýÌýÌýÌýÌýÌý 13,688,704.14 to 29,658,858.98 | 1.20% |
ÌýÌýÌýÌýÌýÌýÌýÌý 29,658,858.98 to 82,132,224.86 | 1.80% |
ÌýÌýÌýÌýÌýÌýÌýÌý 82,132,224.86 and above | 2.25% |
Source: ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in Argentina
This increased percentage can be avoided if 5 percent of the assets abroad are converted into cash and repatriated before March 31 inclusive (deadline extended for this year to April 30).Ìý The repatriated funds need to be deposited in certain financial institutions maintained in the country until December 31 of the year of repatriation.ÌýÌý
ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø INSIGHTS
Companies with globally-mobile employees â€� especially Argentine citizens living abroad â€� with assets (whether inside or outside Argentina) subject to the wealth tax under Argentine law, should consult with their tax service professionals about completing and filing their tax returns and paying their taxes.Ìý
There could be benefits for repatriating some part of the taxpayer’s foreign currency holdings abroad.Ìý Questions about the rules, who they apply to, and what next steps are advisable should be addressed to a qualified tax professional or a member of the GMS team with ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in Argentina (see the Contacts section).
Contacts
Footnotes
1 See Decree DR 281/2024:ÌýBoletÃn Oficial de la República Argentina, Decreto 281/2024Ìý²¹³Ù:ÌýÌý.
Also see, Law 27.667 (Wealth Tax Regulations):ÌýBoletÃn Oficial de la República Argentina, Ley 27667Ìý²¹³Ù:ÌýÌý.
*ÌýÌýÌýÌý *ÌýÌýÌýÌý *ÌýÌýÌýÌý *
Ìý
ARS 1 = EUR 0.001
ARS 1 = USD 0.0011
ARS 1 = GBP 0.0092
ARS 1 = BRL 0.006
ARS 1 = CAD 0.00157Ìý
Source: www.xe.comÌýÌý
Related resoruce
For related coverage, see the following issues of GMS Flash Alert:
GMS Flash Alert 2021-027, "Argentina � Taxpayers� Wealth Will Be Subject to Mandatory and Extraordinary Contribution" (January 15, 2021) at: https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2021/01/fa21-027.pdf.
GMS Flash Alert 2022-006, "Argentina � Wealth Tax Changes to Non Taxable Minimum, Tax Rates" (January 12, 2022) at: https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2022/01/fa22-006.pdf.
GMS Flash Alert 2022-195, "Argentina â€� Taking Steps to Tax Foreign Currency Purchases Made Abroad"ÌýÌý (October 27, 2022) at: /xx/en/home/insights/2022/10/flash-alert-2022-195.html.
GMS Flash Alert 2023-087, "Argentina � Update on Parameter Regarding 2022 Informative Tax Return Filings" (April 25, 2023) at: /xx/en/home/insights/2023/04/flash-alert-2023-087.html.
Disclaimer
The information contained in this newsletter was submitted by the ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International member firm in Argentina.
GMS Flash AlertÌýis a Global Mobility Services publication of the ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø LLP Washington National Tax practice. The ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø name and logo are trademarks used under license by the independent member firms of the ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø global organization. ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International or any other member firm vis-à -vis third parties, nor does ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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