Argentina's New Tax On Residents Global Wealth

[Bajo_cero2]

Thank you also for providing some concrete information and insight into the numbers (117 billion PESOS I assume) and how AFIP will go about this. That is reassuring.

They were not pesos, it was 117 billion usd that were declared at Macri [self] money laundrey amnesty.

Money laundry amnesty: 1) you declare you have x amount of money abroad. 2) you declare it is not drug’s income. 3) you got the amnesty and you pay in future whealth tax (it is a generalization). 4) at the website of afip it says you declared x and you have to pay Y. Simple.
Helloooooooooo. This is all about.
If you read the law, they offer advantages if you bring back 5% and you keep it deposited at the bank for almost 1 year.
It means that they are after 5.85 billion usd from the money laundry amnesty.
Total argentine assets abroad were about 241 billion usd before the amnesty, it means that total are about 358 billion usd. It means they want to collect 17,9 billion usd, not pesos.
Here you have to add that during the last 4 years they took 56 billion usd loans that were used for capital flight. It means that argentine’s assets abroad are about 414 billion usd, so, the total target are 20.7 billion usd, not pesos.
The law says it is a solidary law because they ask help to the richest because if they bring back the 5% of their whealth, they save money in tax for them and in interest for the country.

 

[toongeorges]

The law says it is a solidary law because they ask help to the richest because if they bring back the 5% of their whealth, they save money in tax for them and in interest for the country.

The idea is brilliant. Argentines do not trust Argentine politicians, therefore send their money out of the country. So the politicians come up with the idea to punish these naughty Argentines by increasing the wealth tax. This will certainly restore trust and solve the capital flight.

 

[gracielle]

30 January 2020

Bienes Personales: punto por punto cómo se amplía el beneficio para quienes repatrien fondos

El Gobierno da más beneficios para aquellos que traigan fondos desde el exterior antes del 31 de marzo. De qué se trata.

www.cronista.com

 

[Irelander]

A question for Bajo Cero: regarding Bienes Personales. In an earlier post, you stated that:

When the law refers to assets abroad, it means assets that were transferred from Argentina, not wealth you created abroad before coming to Argentina.

... this is exactly my case: I have permanent residency, but had a house in my home country before coming here. I'll be going home in 3 years time and the assets in my home country are basically my pension. So it's not a case of "repatriación" ... I can demonstrate that I had the assets before coming here.

Before I take the matter up with my contador, can you direct me to where it in the legislation it says this?

 

[Zxwy]

very similar reason i only spend 180 days in Medellin, i am looking for a country to split my time, that is why i am looking at Argentina or Ecuador

 

[Alby]

Just move to Argentina and don't worry about it. The consensus amongst the risk takers on this site is that if you are a resident here with overseas assets and spend more than 180 days in the country in any given year the tax collection agency will never go after you to charge you the wealth tax for that the year.

The core argument, apparently, is that the "vibe" of the changes to the wealth tax in Argentina is not intended to target foreigners, even though to date nobody has pointed to anything specific in the law that demonstrates this vibe. If that argument proves one day to be overly optimistic, those in this position would not want to be defending their assets with this lawyer:

 

[Irelander]

Whatever about the 'vibe', this is what my contador says about the new law:

el incremento de la tasa del impuesto alcanza a todos los residentes en el país, por los bienes situados en el exterior, nada dice la ley ni el DR respecto a si los fondos salieron del país, o son anteriores a la incorporación como residente en Argentina.

... and that's from a very reputable, top drawer tax consultant in microcentro. So be quite clear everybody: if you are resident in Argentina, you have to pay 2.25% annually on all your assets outside Argentina.

Doing anything less means you're committing tax evasion and liable to prosecution.

 

[sts7049]

the second they actually try to tax me on what i have outside i'm packing my bags and leaving.

i'm sure your accountant is correct, and if you want to pay that 2.25% i'm sure they will be happy to receive it. but i'm staying on the side of this is not intended to apply to us.

 

[dsp27]

Whatever about the 'vibe', this is what my contador says about the new law:

el incremento de la tasa del impuesto alcanza a todos los residentes en el país, por los bienes situados en el exterior, nada dice la ley ni el DR respecto a si los fondos salieron del país, o son anteriores a la incorporación como residente en Argentina.

... and that's from a very reputable, top drawer tax consultant in microcentro. So be quite clear everybody: if you are resident in Argentina, you have to pay 2.25% annually on all your assets outside Argentina.

Doing anything less means you're committing tax evasion and liable to prosecution.

I am sorry but I disagree with your contador. Sure, the law is vague because it was prepared very quickly and approved in a hasty manner. The executive and the AFIP will have to interpret the law and act on it. There is no indication that they will be going after non-citizens or those with no economic activity in the country or their assets abroad. This law is meant to "penalize" argentines who had moved funds outside the country.

I would get a second opinion by another consultant. I think this one just wants to charge their fee for preparing your 2.25% tax return.
You bought your house with funds that were NOT the result of economic activity in Argentina or Argentine residents, probably way before you even became a resident here. It's a non-starter.

 

[Alby]

There seems little doubt that the "vibe" is exactly as you say: to "penalize" argentines who had moved funds outside the country.

But where is the evidence that the executive and the AFIP will so helpfully interpret it now (and in the future) in accordance with the vibe?

It's a genuine question. Any evidence from AFIP's past behaviour (or any equivalent agency elsewhere in Latin America--my own personal experience has been in Peru, where vibes have not been helpful in dealing with the tax authority; someone commenting above also has given the impression that in Colombia one ought to take notice of what the legislation says rather than its vibe) would be very welcome and helpful at this point of the debate.