Tax on Personal Assets (Wealth Tax)
Information on the tax due on assets located in Argentina...
This tax is imposed upon all assets owned at the end of the calendar year. Individuals domiciled in Argentina are taxed on assets located in Argentina and abroad exceeding AR$305,000. Individuals domiciled outside Argentina, including non-residents in Argentina on a permanent basis, are taxed only on assets located in Argentina; e.g. expatriates residing in Argentina on work assignments for a period that does not exceed five years are considered to be domiciled abroad. Thus, they are taxed only on their personal assets located in Argentina.
The tax rate is 0.5 percent for the excess over AR$305,000, increasing to 1,25 percent for the amount exceeding AR$5,000,000. A tax credit is allowed for similar taxes paid abroad, limited to the Argentine tax on assets located abroad.
Deposits in Argentine institutions are exempted from the tax base.
In addition, the personal asset tax exemption now applies with respect to:
- Securities, bonds, and other negotiable instruments issued by the National, Provincial and Municipal Governments and the City of Buenos Aires, irrespective of the date of acquisition
- Certificates of deposits previously subject to the freeze on bank accounts and currently rescheduled and replaced by "CEDROS" bonds
The tax to be levied on shares or interests in the capital stock of companies incorporated under Law 19550 and most local trusts, which are held by individuals and/or undivided estates located in the country or abroad, should be calculated and paid by the referred companies. The applicable rate is 0.50 percent on the equity of the local company.
Foreign individuals and foreign companies that do not have a permanent establishment in Argentina are subject to withholding tax on income received from Argentine sources. A 35 percent withholding tax is applied to presumed net income, which is a fixed percentage of the gross amount received. The percentage varies depending on the type of income, and therefore the effective withholding rates vary.
Data and information given to the tax authorities must be kept secret. The AFIP (Public revenue Agency) may, however, share information with ANA (Customs), the Comisión Nacional de Valores (Argentine equivalent of the SEC) and the Argentine Central Bank. Also, a judge may request the AFIP to disclose information to a court. The AFIP has, however, on one occasion, published the amount of tax on private property paid by individual taxpayers and it has sometimes published the names of taxpayers that, according to the records of the DGI, have missed a tax deadline.
Statute of Limitations
The statutory period for assessment is normally five years. There are, however, circumstances that might be examined in each case. It is important to note that Law 26.476 (2009 Tax amnesty) states that the statute of limitation period has been suspended for one year.
For social security taxes, the statute of limitations extends to ten years.