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Without fines or limits: AFIP opens the registry of real estate projects to find out which ones are suitable for money laundering - La Nacion Propiedades
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www.lanacion.com.ar
August 19, 2024
The Government opens the possibility of reporting works suitable for money laundering in order to invest the regularized funds in new works or those with a degree of progress of up to 50%
By Candle Contreras
Money laundering has been enabled for those who allocate their money to real estate projects Archive
This Monday, the Federal Public Revenue Administration (AFIP) enabled a key mechanism for the real estate sector : reporting real estate projects in which cash can be laundered without any fine or limit . Through General Resolution 5549/2024 , published in the Official Gazette, it seeks to encourage the regularization of assets both inside and outside the country , offering an opportunity for those who wish to reinvest their undeclared capital.
This point arises from the possibility of legally laundering up to US$100,000 tax-free , and for a larger amount with progressive rates ranging from 5% to 15% - depending on the date on which it is entered - for higher amounts. However, if cash is regularized and left in the financial system until December 31, 2025, no fine is paid and no limit is set . Another option is to invest that cash in some of the investments authorized by the Ministry of Economy, such as the one that was enabled . In these cases, the deadline to regularize money is until September 30, 2024.
The resolution includes both new projects and those with a degree of progress of less than 50% at the time the law came into effect (July 8) . In this way, this construction incentive provides benefits to those people who have their money undeclared in the country and can invest it in a real estate project . “We think it is a good measure to promote development and investment in real estate projects. Construction is what generates work, investment, activity and deserves this privileged treatment,” says Damián Tabakman, president of the Chamber of Urban Developers (CEDU) .
he resolution includes both new projects -started after July 8, 2024- and those with a progress level of less than 50%.Shutterstock
Along these lines, it should be noted that all assets for laundering purposes , exceptionally, must be valued in US dollars . In the case of real estate, its acquisition value, its fiscal value or its minimum value (whichever is higher) must be considered. “Most properties will end up being calculated at the minimum value, because the acquisition value was converted to pesos with a low exchange rate compared to the current one,” explains tax specialist Sebastián Domínguez.
The subjects covered by the regulations are: direct investors, developers, builders, investment vehicles or contractors of construction lease contracts , who must register said projects in the REPI (Real Estate Projects Registry).
In this way, according to the regulations, the following are included in the registry :
A key point of this regulation is that those who register will not need to open a Special Regularization Account to receive the funds , they will simply have to associate and register their own bank account with the real estate project.
The measure to allocate laundered funds aims to promote development and investment in real estate projects
The expected impact on the sector is positive , as Tabakman mentions: “We hope that many of the people who are already thinking about laundering will choose to do so by buying projects in progress and that the entire sector will work in a more regular and more regularized way.”
“We see it as very positive that well projects are being considered as part of money laundering, given that it boosts a segment of the market that is key as a first home. We have had, in recent times, many inquiries about this type of venture and the payment possibilities in various projects. So, surely, they will have a great boost with this proposal ”, adds Luis Signoris, General Manager of Compañía Gerenciadora Fiduciaria (CGF).
For amounts exceeding US$100,000 , the project proposes progressive rates; the earlier you enter the regime, the lower the rate to be paid:
If a taxpayer regularizes assets in more than one stage, the stage in which the last addition was made must be considered for all purposes.
In the case of regularizing cash , it must be deposited in a Special Account for Asset Regularization, and as long as it remains there until December 31, 2025 or is used for any of the investments authorized by the Ministry of Economy, you can launder amounts without a limit and without penalty or taxes (for example, investments in real estate projects). However, funds that are not transferred to these accounts will be taxed. Cash must be regularized within the first stage, until September 30, 2024 .
You can launder money up to US$100,000 without paying any type of penalty.KonstantinChristian - Shutterstock
Domínguez explains that one case to consider is one in which the taxpayer who launders up to US$100,000 in cash and decides to transfer the amount deposited in the special account to another account in his/her ownership before the deadline for the manifestation of adhesion of Stage 1 (September 30), can only do so under sworn statement, explaining that this money will be used in duly documented onerous operations, understood as such: invoice, sales agreement, deed, among others.
To verify that the funds are allocated from the special regularization accounts to the developer of a real estate project , the AFIP opens a registry where the developer must report the type of work or project to be carried out , the approval of the work permit, its degree of progress and any other information that the agency considers necessary.
"Those who launder cash must maintain investments in real estate projects until December 31, 2025, otherwise they will have to pay the tax," says Domínguez.
www.buysellba.com
Source:
Sin multas ni topes: AFIP abre el registro de proyectos inmobiliarios para conocer cuáles son aptos para blanqueo
El Gobierno abre la posibilidad de informar las obras aptas para blanqueo para poder invertir los fondos regularizados en obras nuevas o con un grado de avance de hasta 50%
www.lanacion.com.ar
August 19, 2024
The Government opens the possibility of reporting works suitable for money laundering in order to invest the regularized funds in new works or those with a degree of progress of up to 50%
By Candle Contreras
Money laundering has been enabled for those who allocate their money to real estate projects Archive
This Monday, the Federal Public Revenue Administration (AFIP) enabled a key mechanism for the real estate sector : reporting real estate projects in which cash can be laundered without any fine or limit . Through General Resolution 5549/2024 , published in the Official Gazette, it seeks to encourage the regularization of assets both inside and outside the country , offering an opportunity for those who wish to reinvest their undeclared capital.
This point arises from the possibility of legally laundering up to US$100,000 tax-free , and for a larger amount with progressive rates ranging from 5% to 15% - depending on the date on which it is entered - for higher amounts. However, if cash is regularized and left in the financial system until December 31, 2025, no fine is paid and no limit is set . Another option is to invest that cash in some of the investments authorized by the Ministry of Economy, such as the one that was enabled . In these cases, the deadline to regularize money is until September 30, 2024.
The resolution includes both new projects and those with a degree of progress of less than 50% at the time the law came into effect (July 8) . In this way, this construction incentive provides benefits to those people who have their money undeclared in the country and can invest it in a real estate project . “We think it is a good measure to promote development and investment in real estate projects. Construction is what generates work, investment, activity and deserves this privileged treatment,” says Damián Tabakman, president of the Chamber of Urban Developers (CEDU) .
he resolution includes both new projects -started after July 8, 2024- and those with a progress level of less than 50%.Shutterstock
Along these lines, it should be noted that all assets for laundering purposes , exceptionally, must be valued in US dollars . In the case of real estate, its acquisition value, its fiscal value or its minimum value (whichever is higher) must be considered. “Most properties will end up being calculated at the minimum value, because the acquisition value was converted to pesos with a low exchange rate compared to the current one,” explains tax specialist Sebastián Domínguez.
The subjects covered by the regulations are: direct investors, developers, builders, investment vehicles or contractors of construction lease contracts , who must register said projects in the REPI (Real Estate Projects Registry).
In this way, according to the regulations, the following are included in the registry :
- Real estate projects for direct or indirect investment in the construction of residential, non-residential, rural buildings, land subdivision, renovations, expansions, installations, improvements and any project that, in accordance with building codes or similar provisions, requires a report, authorization or approval from a competent authority.
- Investment vehicles or investment products for real estate projects , which include mutual funds and financial trusts used for real estate development, whose purpose is to finance, invest and/or develop real estate activity and which have the authorization of the aforementioned CNV.
- Contracts for the leasing of works on own property for industrial, productive, residential or commercial purposes .
A key point of this regulation is that those who register will not need to open a Special Regularization Account to receive the funds , they will simply have to associate and register their own bank account with the real estate project.
The measure to allocate laundered funds aims to promote development and investment in real estate projects
The expected impact on the sector is positive , as Tabakman mentions: “We hope that many of the people who are already thinking about laundering will choose to do so by buying projects in progress and that the entire sector will work in a more regular and more regularized way.”
“We see it as very positive that well projects are being considered as part of money laundering, given that it boosts a segment of the market that is key as a first home. We have had, in recent times, many inquiries about this type of venture and the payment possibilities in various projects. So, surely, they will have a great boost with this proposal ”, adds Luis Signoris, General Manager of Compañía Gerenciadora Fiduciaria (CGF).
Key points of money laundering
Those who do not have their assets declared in the country will be able to launder up to US$100,000 without paying any tax , and without any type of penalty for assets that have not been declared.For amounts exceeding US$100,000 , the project proposes progressive rates; the earlier you enter the regime, the lower the rate to be paid:
- Until September 30, 2024 : a 5% rate is paid on the surplus of US$100,000
- Until December 31, 2024 : the rate is 10%
- Until March 31, 2025 : the rate rises to 15%
If a taxpayer regularizes assets in more than one stage, the stage in which the last addition was made must be considered for all purposes.
In the case of regularizing cash , it must be deposited in a Special Account for Asset Regularization, and as long as it remains there until December 31, 2025 or is used for any of the investments authorized by the Ministry of Economy, you can launder amounts without a limit and without penalty or taxes (for example, investments in real estate projects). However, funds that are not transferred to these accounts will be taxed. Cash must be regularized within the first stage, until September 30, 2024 .
You can launder money up to US$100,000 without paying any type of penalty.KonstantinChristian - Shutterstock
Domínguez explains that one case to consider is one in which the taxpayer who launders up to US$100,000 in cash and decides to transfer the amount deposited in the special account to another account in his/her ownership before the deadline for the manifestation of adhesion of Stage 1 (September 30), can only do so under sworn statement, explaining that this money will be used in duly documented onerous operations, understood as such: invoice, sales agreement, deed, among others.
To verify that the funds are allocated from the special regularization accounts to the developer of a real estate project , the AFIP opens a registry where the developer must report the type of work or project to be carried out , the approval of the work permit, its degree of progress and any other information that the agency considers necessary.
"Those who launder cash must maintain investments in real estate projects until December 31, 2025, otherwise they will have to pay the tax," says Domínguez.
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