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ARBA: The first installment 2 bills arrive, how much will be paid and why there are doubts about how the calculation is made - La Nacion Propiedades
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ARBA: llegan las primeras boletas de la cuota 2, cuánto se pagará y por qué hay dudas sobre cómo se hace el cálculo
En abril se paga la cuota 2 del impuesto inmobiliario urbano de la provincia de Buenos Aires que se actualiza según un coeficiente determinado recientemente
www.lanacion.com.ar
March 30, 2024
In April, installment 2 of the urban real estate tax of the province of Buenos Aires is paid, which is updated according to a recently determined coefficient
By Maria Josefina Lanzi
The first bills arrive to pay installment 2 of the Urban Real Estate Tax of the Province of Buenos Aires and there are doubts about the coefficient used
The urban real estate tax receipts from the province of Buenos Aires have already begun to arrive , where you can see the updated value of the fee 2 . Specialists warn about the lack of clarity that exists in the way this coefficient is calculated; In addition, the increases and changes that occurred in the tax at the beginning of 2024 may cause its payment to become a burden for some.
Property tax installment 1 was due in February and installment 2 will be due on April 10, 2024. At the end of February, with the first installment already due and paid, there was a change in the calculation that would impact the next installment. Although there is no clarity about what variables it weights or how this new coefficient is determined to update the quota, it is possible to enter the ARBA page and calculate it “by hand.” From this it appears that the update coefficient is 1.20.
To exemplify, two cases can be observed of real updates of the real estate tax of the Province of Buenos Aires, as it would have been before and after the new coefficient:
Example of two cases of real real estate tax updates of the Province of Buenos Aires
“Although the update coefficient of 1.20 is lower than inflation since the end of 2023, the majority of taxpayers have not experienced a proportional increase in their income ,” shares Sebastián Domínguez, tax accountant, CEO of SDC Asesores Tributarios.
The update by coefficients in each installment occurs in a context in which the real estate tax has increased up to 200% at the beginning of 2024, and in which an interest rate of 8% per month is added, for late payment, which creates a difficult situation for those who cannot pay on time.
The update coefficient for installment 2 of the real estate tax in the Province of Buenos Aires is 1.20
“As for the legality of the update, it could be violating the principle of Reserve of Law, since the way of calculating the coefficient should be established in the Tax Law instead of being delegated to ARBA ,” says Domínguez and adds: “ A This is compounded by the lack of clarity about how the 1.20 coefficient applicable to the 2″ quota is determined.
For his part, the director of ARBA, Cristian Girard, spoke yesterday on Radio Miter with Eduardo Feinmann and assured that, if you look at any element of the economy a year ago, whether in clothing, food, cars, "the “Increases are large given the inflationary context we are experiencing.” However, he added that “in this context, property taxes in the province of Buenos Aires, which are patent, urban and rural real estate, increased below inflation for a large part of the owners .”
Domínguez also believes that the inflation of recent months is higher than the update that will be paid in April of this tax, but “the issue is that the income that people have often does not keep up with inflation, so it is not enough for them to pay.” cover all expenses and to continue absorbing increases.” He also adds that “many people found it very difficult to pay the February amount , since” the discount was taken for compliant taxpayers and for those who had a digital ticket, so in those cases the increase was often more than the inflation of the last year".
“ Although the 200% increase responds to the inflation that occurred in 2023, there is uncertainty about how and how much the following installments will be adjusted .” Furthermore, anyone's expenses have increased and this adds to the costs they already have,” shares Santiago Saenz Valiente, accountant, tax professional and partner at SSV & Asociados.
What changes has the real estate tax had recently?
At the end of December 2023, the Legislature of the Province of Buenos Aires sanctioned the 2024 tax law proposed by Governor Axel Kicillof, which ordered to increase the urban real estate tax up to 200% (although in some cases, where the properties exceeded a certain value, the increase was greater).
The Tax Law also established that a coefficient that will be established by ARBA , which may not exceed the interest rate of the Bank of the Province of Buenos Aires in 30-day discount operations, increased by up to 100%.
Before this resolution, the five installments of the real estate tax paid were the same. The calculation of the tax was carried out at the beginning of the year based on the tax base provided by ARBA, applying a table of progressive rates with the increase limit established by law with respect to the previous year.
The Tax Law established that a coefficient established by ARBA will be applied to the amount of the Real Estate Tax at the time of issuance of each installment.
Since 2024 began, five installments with the same value are no longer paid, but rather each of them is updated by a coefficient. At the end of February , through Normative Resolution 12/2024, the annex to Resolution 8/2024 that established the methodology that was going to be used to set the coefficient was repealed , and it was established that this will be calculated by ARBA at the time. to issue the quotas , according to the weighting of economic variables that the collecting agency carries out and up to the limit of what is established in article 137 of the tariff law. That is to say, the way in which the adjustment would be made was changed , but the new formula had not been established nor had they given details about its calculation.
In the words of the accountant Domínguez: "This last Resolution caused greater uncertainty, because it indicated that ARBA will establish the update coefficient according to the weighting of the economic variables that it carries out, up to the limit provided for in the Law."
Since Thursday, February 29, as explained before, by entering the ARBA website you can find out the updated value of installment 2 of the Urban real estate tax, from which it appears that the update coefficient is 1.20.
It is worth noting that, “ recently, ARBA eliminated the benefits for payment on time and for adhering to the electronic ticket or the automatic debit system, further increasing the value of the real estate tax for those who usually paid on time,” adds Saenz Valiente.
As of Thursday, February 29, 2024, you can now know the updated value of installment 2 of the Urban Real Estate Tax by entering the ARBA website
Who pays the real estate tax?
Those who must pay the real estate tax in the province of Buenos Aires are the owners of residential properties . In the case of rentals , according to the contracts signed under the already repealed law, the real estate tax was also borne by the owners , so those who have contracts signed under the rental law enacted in July 2020 and repealed in December 2023, but which remain in force until their end, it will be the owner who will have to assume this additional cost. Currently, with the DNU of Javier Milei that repealed the rental law , the payment of the real estate tax depends on what is established in the agreement between the parties.Domínguez details what happens if the owner has more than one property in the province of Buenos Aires : “Each property is analyzed separately and then the scale it falls on is examined according to the sum of tax bases to determine the increase that corresponds to it”.
In the city of Buenos Aires this same tax is updated based on the Consumer Price Index (CPI) of the same city. In detail, the index is applied five months back. For example, in January 2024 the CABA CPI for August 2023 is applied, in February the September one and so on.
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