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Changes in the Provincial real estate tax: The fees to be paid will be updated by a coefficient that is not yet known - La Nacion Propiedades
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Cambios en el impuesto inmobiliario de Provincia: las cuotas a pagar se actualizarán por un coeficiente que aún no se conoce
A partir de la cuota 2 del impuesto inmobiliario se actualizarán por un coeficiente a lo largo del año que aún no se conoce
www.lanacion.com.ar
February 28, 2024
Starting with installment 2 of the real estate tax, they will be updated by a coefficient throughout the year that is not yet known.
By Maria Josefina Lanzi
The real estate tax rates will be adjusted according to different coefficients starting from number 2
The annex that established the coefficients that would be used to calculate the update for real estate tax installments was repealed . In this way, it is not yet known how the quotas will be updated during 2024 , quotas that until recently were fixed throughout the year.
Given the repeal of the Single Annex of the RN (ARBA) No. 8/2024, which had approved the calculation of the update coefficients of installments 2 and subsequent of the Real Estate and Automotive Taxes, César Litvin, public accountant at the Lisicki Litvin studio and Associates, explains that the resolution states that: “This measure seeks to provide greater flexibility to ARBA in the context of current economic fluctuation.” For his part, he believes that “greater flexibility represents more discretion to collect more taxes .”
“The objective of these quota updating coefficients would be to maintain the value, a similar value due to the effect that inflation has,” says tax accountant Sebastián Domínguez. “If the coefficient is reasonable, it would maintain the tax in real terms. The problem is with people whose income is not updated due to inflation, so they have to pay the real estate tax adjusted by the coefficient similar to inflation, but their income did not increase at that rate,” adds Domínguez.
For his part, Santiago Saenz Valiente, accountant, tax professional and partner at SSV & Asociados, believes that “it is in line with all the collection increases that Governor Axel Kiciloff is making in the Province, and flexibility is an excuse to produce a increase even greater than reasonable.”
Fee 2 of the real estate tax will be adjusted with the calculation of the update coefficients that are not yet known
What is real estate tax?
This is the tax on real estate property applied by all Argentine provinces and the city of Buenos Aires. In the case of the Province of Buenos Aires, it is collected by the Collection Agency of the Province of Buenos Aires (ARBA). The “basic” tax corresponds individually to a property and the “complementary” tax is charged in the case of owning a group of properties within the same floor. It is paid in five installments throughout the year.Before the recent 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.
From now on, there will no longer be five installments with the same value, but rather each installment will be updated by a coefficient. In any case, these coefficients cannot yet be calculated, since, as Sebastián Domínguez states: “What the rule that was published today establishes is that, before the time comes to pay the second installment of this year, will make the calculation available. Perhaps it will be during March or in the first days of April, the month in which this fee must be paid.”
This year's tariff law introduced something that was not there until now: ARBA would apply a coefficient that would be established to update those fees. This coefficient was regulated in a regulation that at the time of issuance of installments 2 and later of the real estate and automobile tax, was going to be calculated according to a methodology that is in the annex to that resolution. Before it is carried out, that article of the resolution that referred to the annex is now replaced. What it does is establish that the coefficient will be calculated by ARBA at the time of issuing the fees, 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.
In other words, Domínguez clarifies that "in short, the annex is no longer there, the calculation will be based on an analysis that ARBA will carry out, which is not yet known what it is, and when the expiration of each installment arrives, it will “It will establish that coefficient and it will generate the amounts with that updated coefficient ,” explains the accountant.
The real estate tax is a tax on real estate that is applied by all Argentine provinces and the city of Buenos Aires.
Who pays the real estate tax?
In all properties, the payment of real estate tax corresponds to the owner . In the case of rentals, according to the contracts signed under the already repealed law, the real estate tax was borne by the owners, so those who have current contracts signed under the rental law enacted in July 2020 and repealed in December 2023 but that remain in force until their end, it will be the owner who will have to assume this additional cost.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.
For the specialist, the General Paz dividing line defines how abrupt the impact of the increase is. “ In the city there is an update but it is not as abrupt as what is intended in the Province ”, He says.
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