According to official estimates, Argentine residents hide approximately $250 billion from the Argentine tax authority. Most of these funds are held in foreign bank accounts and assets. Beginning on 2017, Argentina will automatically exchange financial information with several OECD and G20 countries.
Today, the Minister of Finance Alfonso Prat Gay confirmed that his team is working on an amnesty bill that would be sent to Congress sometime this year. An unofficial draft of the bill has been published by the media. This draft includes:
- A payment plan for owed taxes with a reduction of interests and penalties.
- A voluntary disclosure of assets program. This program offers taxpayers a reduced rate of 8% if the funds are kept abroad; while those who elect to transfer the funds back to Argentina or invest in the country (taxpayers can choose to invest in the Real Estate market, private or public bonds or in Argentine corporations) will benefit from a range of rates from 3% to 5%.
Written by: Eduardo Augusto Aguilera, LL.M. – Senior Associate Tax at RCTZZ Abogados
Media Publications: Buenos Aires Herald