JANUARY 03, 2022

Law No. 27,667: changes in the personal assets tax affecting Argentine residents

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Tax Law Department Report | Law No. 27,667: changes in the personal assets tax affecting Argentine residents

Dear Sir or Madam,

Through Law No. 27,677 (published in the official gazette on 12/31/2021) the following amendments on the personal assets tax were introduced, applicable to Argentine residents as from fiscal period 2021:

1. Increase of the personal assets tax allowance to AR$ 6,000,000 and the allowance for dwelling, when its value does not exceed AR$ 30,000,000.

2. Two new brackets are added to the sliding scale of the tax for assets in Argentina: rates of 1.50% and 1.75% are applied to taxable bases exceeding AR$ 100,000,000 and of AR$ 300,000,000, respectively.

3. The aggravated taxation on assets located abroad is re-established with tax rates ranging from 0.70% to 2.25% (its application was originally limited up to 12/31/2020), which will not be applicable if a repatriation of financial assets located abroad takes place, as established by Decree No. 912/2021 (published in the official gazette on 12/31/2021).

Furthermore, it is established that, as from fiscal period 2022, the allowance and the scales of the tax must be adjusted on a yearly basis by application of the coefficient deriving from the annual variation of the Consumer Price Index (“IPC,” after its acronyms in Spanish) stipulated by the National Institute of Statistics and Census.

Should you require any further information on this matter, please do not hesitate to contact us.

Sincerely,

Santiago L. Montezantiv