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March 4, 2019
Argentina extends deadlines to elect the tax revaluation option
On 27 February 2019, Argentina’s Federal Tax Agency issued General Resolution No. 4,429, which extends the deadlines for taxpayers to elect the tax revaluation option.
The tax reform enacted in December 2017 (Law 27,430) established a tax revaluation option, which is a one-time mechanism for Argentine-resident individuals and companies to revaluate for tax purposes their assets located in Argentina that generate taxable income. For more information, see EY Global Tax Alert, Argentina publishes new regulations on tax revaluation option and VAT on digital services, enacted as part of tax reform, dated 3 May 2018.
Taxpayers determine the new tax value of the assets by applying a “revaluation factor” to the tax value originally determined in each year or period of the asset’s acquisition or construction. For immovable or movable property qualifying as fixed assets, an independent appraiser may determine the value under certain circumstances. This mechanism requires the payment of a one-time special tax on the amount of the revaluation. The special tax rates are from 5% to 15%, depending on the type of asset.
The tax revaluation option applies to the first tax year ending after 29 December 2017 (i.e., the enactment date of Law 27,430).
The deadline to elect the tax revaluation option for companies with a tax year ending in December was 28 February 2019; for companies with a tax year ending from January to November, the deadlines ranged from 29 March 2019 to 29 November 2019, depending on the month in which the tax year ends.
General Resolution No. 4,429
The Resolution extends the deadlines for electing the tax revaluation option as follows:
For additional information with respect to this Alert, please contact the following:
Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires
Ernst & Young, LLP, Latin American Business Center, New York
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific