Argentina's New Tax On Residents Global Wealth

[Silvie]

I lack information as to whether my Social Security payments could also be interpreted as a bien personal.

[/QUOTE]
Your social security payments are your income and get declared in Ganancias annually.
Your savings, vehicles, boats and properties are bienes personales, for which you get taxed over and over again every year. I am also from Buenos Aires and returned from NY after 37 years; I find this issue a nightmare but at least, most of what I own stays in the US.
The new tax law on global wealth, passed during the last 2 or 3 months, is mainly for extremely rich people and it doesn't affect most of us.

 

[Alby]

Latin America has had so far only one democratically elected president of native origin after six centuries (!) of occupation. Evo Morales, whatever our opinion of him, is an anomaly that confirms the fact that that overwhelming majority of native people are never politically represented in those regions.

Alejandro Toledo as well.

Separately, without going back too much over matters that have been canvassed earlier on this thread, part of the explanation for how expats manage the tax issues here is that some of us are protected by double taxation treaties which mean we only pay tax for certain items (including retirement income) in either our home country or in Argentina. Unfortunately, there is no double tax treaty between the US and Argentina. Unfortunately, too, the double tax treaties don't satisfactorily cover the bienes personales tax (and none cover the more recent millionaires tax--not that this tax is likely to affect any expat).

 

[jeff1234]

Argentina's wealth tax has collected just 2% of target to date


Argentina’s new wealth tax has netted just two percent of its target figure ahead of its original deadline, with the nation’s richest citizens evidently in no hurry to pay up.

The government collected only 6.063 billion pesos (US$66 million) from its one-off “extraordinary contribution” in the course of March, a communiqué reported on Monday night (not including advance payments of 504 million pesos).

Although Argentina’s richest individuals now have until April 16 to pay the tax – after authorities extended the original March 30 deadline – the intake thus far has been well below the projected target of 300 billion pesos when Congress approved the bill late last year.

The tax was designed to help cover some of the costs incurred by the government in meeting the health crisis triggered by the coronavirus pandemic (although other areas have since been added). Argentines owning more than 200 million pesos worth of assets must pay between 2.25 and 5.25 percent of that fortune, depending on its size and whether it is invested at home or abroad.

 

[antipodean]

Argentina's wealth tax has collected just 2% of target to date


Argentina’s new wealth tax has netted just two percent of its target figure ahead of its original deadline, with the nation’s richest citizens evidently in no hurry to pay up.

The government collected only 6.063 billion pesos (US$66 million) from its one-off “extraordinary contribution” in the course of March, a communiqué reported on Monday night (not including advance payments of 504 million pesos).

Although Argentina’s richest individuals now have until April 16 to pay the tax – after authorities extended the original March 30 deadline – the intake thus far has been well below the projected target of 300 billion pesos when Congress approved the bill late last year.

The tax was designed to help cover some of the costs incurred by the government in meeting the health crisis triggered by the coronavirus pandemic (although other areas have since been added). Argentines owning more than 200 million pesos worth of assets must pay between 2.25 and 5.25 percent of that fortune, depending on its size and whether it is invested at home or abroad.

Plan B: Respiration tax. We can pay for the pandemic based on how much we breath public air.
Plan C: IMF ¿donde estas?
Plan D: Spending and regulatory cu.... no never mind... skip straight to expropriations.

 

[toongeorges]

Yesterday I read an article where the government was boasting they had collected more than 70% of the projected revenue and it seems they are very aggressive in collecting the tax, though it seems there is also strong resistance to it:

Impuesto a la riqueza: la AFIP apunta a los patrimonios de más de $3000 millones

La AFIP ya notificó a los millonarios que tienen más de 3.000 millones de pesos en su patrimonio

www.lanacion.com.ar

 

[Churchill]

The average house in the UK is worth 32.75 million Argentine pesos (at official rate 131 GBP - 1 ARS).
So would that make an annual wealth tax payment (assuming it was your only asset) a simple case of calculating 2.25% of 32.75 million?
i.e. 736k pesos annual bill? Wow.

I am not in Argentina at the moment, I hope to never come back apart from on holiday. However, life is not simple, and for family reasons I could be coming back in the next year. This wealth tax is a real dilemma. I do sympathise with honest taxpayers like Irelander and Alby, who want to do the right thing and do not want the AFIP to one day darken their door with a horrendous bill or worse. But, I would be a non-payer. Why? Because I do not think its enforceable and I think the benefits of non payment far, far, far outweigh the risk of one day getting a bill. Who wants to be paying 10K USD a year in taxes (lets face it most on here are going to have assets north of what I used in my example) that hardly anyone else is bothering to pay? Especially, if it is not really aimed at expats. Apart from Irelander, I can't see any comments on here from anyone who sounds like they are actually paying (yeah I know, what people say on a forum and do in real life are two quite different things....).

 

[Ronnie Hotdogs]

This was a one-off levy.

 

[sts7049]

This was a one-off levy.

for now...

 

[Alby]

Not for the first time, this thread is confusing two taxes. It began life in January 2020 referring to the long-standing annual bienes personales tax, a traditional wealth tax that had at the time just been increased to potentially as high as 2.25% on overseas wealth together with alignment with the ganancias (income) tax eligibility criteria, the latter a significant change that closed a bienes personales loophole on overseas-held wealth that had previously provided an escape hatch for Argentines and expats alike seeking to legally avoid it. It is this tax that Churchill is referring to.

Subsequently, the government introduced an (allegedly) one-off Solidarity Contribution tax for the 2020 financial year of up to 3.5% on wealth in excess of US$2.5 million that was in parallel to and overlapped the bienes personales tax for that year.

The two taxes are separate. Both are being now being discussed on this thread, but it is important to distinguish them.

 

[on the brink]

This was a one-off levy.

And Santa Claus is coming down the chimney every Christmas.