Friday, January 6, 2023 | 9:15 a.m.
The Federal Administration of Public Revenues (AFIP) published the new values of the scales and the non-taxable minimum that must be taken into account to determine the tax on personal assets in the fiscal period 2022, which expires in June 2023.
The new values, both the general one and the one corresponding to the house or dwelling, were established according to the update procedure determined by current regulations.
Real estate used as housing will be exempt from tax when its value is less than $56,410,705.41. If this amount is exceeded, the value by which the minimum is exceeded will be computed for the determination of the tax.
When the sum of all encumbered assets located in the country is less than $11,282,141.08, the tax must not be paid, since up to this amount will be considered exempt. This amount includes the value that has corresponded to compute for the house.
However, once that value is exceeded, taxpayers must pay a certain amount, depending on the scale to which they belong.
How the tax is applied
To find out which scale it belongs to, the total valuation of the assets must be taken into account and subtract the $11,282,141.08 mentioned above from that amount. If the result of that account is equal to or less than $0, then the taxpayer is automatically exempt.
If instead -once the $11,282,141 is subtracted- the result is greater than $0, the following scale should be taken into account:
In this way, lower scale taxpayers will pay 0.5% on the excess of $0.
As can be seen in the table, those who have assets whose total value goes from $12,222,319.51 to $33,846,423.25, will have to pay a fixed amount of $77,564.72 plus 1% on the excess of $12,222,319.51 .
With higher value assets, taxpayers will jump up the scale, which will lead them to pay a higher fixed amount and a higher rate each time.
To better understand the application of the tax, it is worth analyzing a specific example. A person with assets that, after subtracting the non-taxable minimum, are valued at $15,000,000, will have to pay a total amount of $105,341.52. This number arises from the sum of the $77,564.72 that correspond to the fixed charge and the $27,776.80 that result from the application of the 1% rate.
assets abroad
The aforementioned scales apply only to goods that were acquired within the country. For goods that are abroad, the formula is different.
In that case, there are no fixed amounts. The scales determine an aliquot that is applied to the total value of the goods.
Thus, a taxpayer who has assets abroad valued at $10 million (after subtracting $11,282,141 from the non-taxable minimum), will have to pay $120,000 in Personal Assets.
What goods enter and what is their value
When calculating the payment of the Personal Property Tax, it must be taken into account that there are assets that are considered for the tax obligation and others that are not. The assets covered include land, real estate (only in urban areas), vehicles less than five years old, titles, shares, savings, loans and deposits abroad.
In some cases, such as stocks, shares, and deposits, the values are very easy to determine, but in others, a somewhat more complex calculation must be made. For real estate, for example, the acquisition value (less an amortization) or the fiscal valuation, the greater of the two, must be taken into account. If a tax valuation corresponds, it must be observed what the valuation was in December 2017 and calculate an inflation indexation from then until December 2022.
With vehicles, the valuation of the National Directorate of Automotive Property Registries (Dnrpa) must be consulted at the time of the closing of the previous fiscal period, in this case December 2022.
