Tax Pardon (Law 27.260)
Law No. 27,260, published in the Official Gazette on July 22, 2016, provides tax amnesty benefits under certain conditions, regulated in the said Law, the Regulatory Decree 865/2016, and the General Resolution 3919/2016.
The amnesty regime provides for a full tax, interests and tax fines or penalties, associated with assets that were held in property on July 22, 2016, that are exteriorized under the Law terms before March 31st, 2016.
The amnesty is available only to tax residents of Argentina, individual or corporate.
Any kind of good or asset is up to be included in the amnesty. In case the regime in used to exteriorize currency in cash, there is an obligation to deposit the amount in a special account, for up to 180 days, without prejudice to certain exceptions to the said rule. The said deposit has to be made up to October 31st, 2016. After that date, no cash will be allowed to be exteriorized.
In case of bank accounts of financial assets held abroad, there is no obligation to bring them to the country and deposit them in domestic institutions. The can still remain abroad after having been exteriorized.
When exteriorizing assets valued more than AR$305.000, the amnesty bears a cost which is (i) 5% if the value of the assets exteriorized does not exceed AR$ 800.000 and exceeding the said amount (ii) 10% of the market value of the assets (other than real estate) exteriorized before December 31, 2016, and (iii) 15% of the said value if the exteriorization takes place after the said date. When exteriorizing real estate, the cost of the amnesty is 5% of the market value.
Also, the regime offers the purchase of public debt or investment in development trusts, as an alternative to avoid the payment of the said cost. Investments made for the said purpose have to be kept in property by he who uses the regime, for a certain amount of years, depending on the alternative chosen.