You are here://MONEY LAUNDERING: THE 15 KEY POINTS OF THE LAW OF FISCAL SINCERITY

MONEY LAUNDERING: THE 15 KEY POINTS OF THE LAW OF FISCAL SINCERITY

The Senate of Argentina, on June 29, 2016, has given final approval to the bill referred to money laundering (Law of Fiscal Sincerity).
The key points of this law, which will run until the end of the first quarter of 2017, are as follows:

1. Who can adhere?

Individuals and societies, registered or not before the AFIP.

2. What are the goods that can externalize?

All domestic or foreign currency and real estate, other assets in the country and abroad, including equities, equity interests in companies, rights. Also movable and immovable property, actions, exchange realty, loans and capital contributions, and other property, such as art objects, liabilities unidentified and undeclared goods.

3. What are the goods that cannot be externalized?

Currency and / or securities deposited in overseas jurisdictions or high risk countries or not Cooperators, (North Korea and Iran).

4. Is it mandatory to report all existing assets?

Yes. If the AFIP detects the externalization of goods that were hidden assets, not only all the benefits of the standard will be lost, but the taxpayer will be penalized paying all the fines from the origin of the tenure.

5. What debts can be included?

Taxpayers may include debts, tax, customs and social security, due as of 31st May 2016. It also may declare autonomous contributions not paid without interest. Also, retention and perception agents could incorporate retained / collected amounts not paid, and tax obligations for operations not met. On the other hand, may incorporate debt facilities plans outdated and reformulate those which are currently in force. Also, they enable the reporting of debts that are in administrative and judicial discussion.

6. How works the tax moratorium?

There will be stops of interest applied to tax debts, according to the amounts and periods specified by law. The cancellation of debts may be made in cash, with a rebate of 15% of the capital; or by a down payment ranging from 10% (micro and small enterprises) to 15% (medium and large) and the balance on a plan to facilitate payment of up to 90 monthly installments (for small businesses).

7. What is the cost to pay for the externalization of capital?

For real estate located in the country or abroad: 5% of its sales value.
Assets (including property) which together do not exceed $ 305,000: nothing. In the event that this total is between $ 305,000 and $ 800,000 a 5% must be paid.
If the assets exceed $ 800,000 and are not real, if declared in 2016: the rate will be 10%. If the goods are declared until 31 March 2017, the rate increases to 15%.

8. Do I have to bring all externalized goods to Argentina?

No. Individuals are not required to enter their goods to the country. They can declare and leave them outside. Money and securities held abroad will be kept deposited without entering them into the country for a period determined by the regulations. Other goods that are externalized must be identified by an affidavit.

9. Should we put all goods on behalf of the taxpayer?

No, because the voluntary declaration shall be valid even if the assets are in the name of the spouse, parents, children or others residing in the country. In case you declare a property on behalf of a different person who is the owner, there will be time until the affidavit of income tax for the fiscal period 2017 for the externalizing assets to be in the name of that person who was identified as the owner.

10. What is the cost to pay for the externalization of capital?

For real estate located in the country or abroad: 5% of its sales value. Assets (including property) which together do not exceed $ 305,000 will pay nothing. For assets valued between $ 305,000 and $ 800,000, a 5%. For assets exceeding $ 800,000, other than buildings, if declared in 2016: the rate will be 10%. If the goods are declared until 31 March 2017, the rate increases to 15%. In this case, whether or Global Bonar 2017 titles are delivered, the rate is reduced to a 10 percent.

11. How can externalize buying government bonds?

An alternative included in the law is that through the purchase of government bonds or participation in mutual funds by a third of the externalized capital, the taxes will be excepted: not only the amount involved in the purchase of securities, but the total funds declared. There is a possibility of acquiring an original bond issued by the national government, which is non-transferable and non-negotiable. Until September 30th may externalize funds without interest with the purchase of a three-year bond, which means in practice that the money will be immobilized during that period. Also, until December 31st, 2016 there is an option of purchasing a bond to 7 years, which will be non-transferable and non-negotiable during the first four years, but may be settled in the secondary market. In this case, an interest rate of 1 percent will be paid. The bond purchase tax exempts an amount equal to three times subscribed.

12. If do you have a society that appeared in Panama Papers or in lists evaders and received intimations of AFIP, etc., you can enter the externalization of capital regime?

Yes. If none of these events have given rise to legal action under which it had issued an indictment against taxpayer, nothing prevents the tax amnesty.

13. How is the tax value determined to pay for the externalization?

The tax is determined by considering the price of the foreign currency buying rate, according to the National Bank of Argentina, which governed the date of the pre-existence of property.

14. What are the benefits?

In case there are no penalties of Law 11,683 and Criminal Tax Law there is an exemption from national taxes that have accrued on the bleached goods. Benefits for taxpayers who have fulfilled their tax obligations are approved: shall be exempted from payment of tax on personal assets for the periods from 2016 to 2018. This benefit also extends to those responsible substitutes, acting for persons established in the outside who own properties in the country and the tax equity interests.

15. What has to do a taxpayer having assets abroad if he decides not to adhere to the Law of Fiscal Sincerity?

You must complete an affidavit, ensuring that all possessions are included in the presentations made by 2015.

2017-09-18T16:24:17+00:00 29/09/2016|Latest news|