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For landlords and tenants: 10% deduction of rent in Income Tax has been enabled - La Nacion Propiedades
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Para propietarios e inquilinos: se habilitó la deducción del 10% del alquiler en Ganancias
La medida busca que aquellos contribuyentes que destinan ingresos al pago de un alquiler puedan aliviar su carga impositiva y también aquellos que ofrecen su propiedad y reciben el pago
www.lanacion.com.ar
July 2, 2024
The measure seeks to alleviate the tax burden of taxpayers who allocate income to rent payments, as well as those who offer their property and receive payment.
By Candle Contreras
Rentals: AFIP made changes for owners and tenants in the Income Tax with holding regime
Eight months after the sanction of Law 27,737, the Federal Public Revenue Administration (AFIP) made changes to the Income Tax withholding regime , establishing new deductions and extensions for informative sworn statements regarding the real estate market: the deduction of 10% of the total annual amount of rentals of properties for residential purposes was regulated , which can be computed by the tenant and the landlord.
The measure was published this Monday in the Official Gazette through General Resolution 5521/2024 , which establishes that tax incentives applicable to the leasing of real estate were established, among which article 85 of the Income Tax Law was incorporated
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The other news is the extension of the date on which employees must report the deduction for 2023 rents, since they have until July 15, 2024 , so that their employers can consider it in the 2023 annual settlement. After that deadline, they will no longer be able to do so. “In the current economic context, where every peso counts, taking advantage of this deduction can make a significant difference in the economy of employees,” says Sebastián Domínguez, CEO of SDC Tax Advisors.
Since the law came into force, the problem was that employees could not report it to their employers on Form F. 572 Web , so they did not take it into account for the settlement of withholdings. Now the possibility has been enabled to report it so that it can be considered in the annual Affidavit, and, from 2024 onwards, it will be possible to report it monthly.
But, in addition, it is a relevant deduction for the owner as well , because "if there is a landlord who is a self-employed taxpayer, but also has other types of income for which he has to pay Income Tax, such as investments abroad, he can take this 10% deduction," says the tax specialist.
Tenants have until July 15 to report the rental deduction to their employers
10% deduction on rent: key facts to keep in mind
According to what was published in the Official Gazette:- “The settlements referred to in the preceding article will be prepared in accordance with the “Income Tax Settlement - 4th Category Dependency Relationship” whose model will be published on the “Income and Personal Property” microsite of the institutional website
- The “model published on the “Earnings and Personal Property” microsite available on the website will be used
In addition, it is necessary that the amount of rent paid is supported by an invoice or equivalent document issued by the landlord , as stipulated in the rental contract.
For their part, the employee, in the first fiscal period in which the deduction is applied and with each renewal of the contract, must send a copy of the rental contract in .pdf format to the AFIP through the service: “Income Tax Deduction Registration and Update System (SiRADIG) - WORKER”.
It is critical that employees report the amount of their 2023 rents using Form F. 572 Web by July 15, 2024. Failure to do so will result in losing the opportunity for their employers to consider this deduction when filing their 2023 annual tax return . When doing so, the amount corresponding to the rent deduction must be included by employers in the “Other Deductions” item on Form F. 1357.
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