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New requirements and tax benefits for renting: everything that owners and tenants need to know - Infobae
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www.infobae.com
September 07, 2024
A new AFIP resolution, while eliminating the obligation to register rental contracts, makes it possible to register them to access tax benefits. This measure seeks to simplify and reduce the administrative burden on taxpayers.
By Jose Luis Cieri
There are new rules for the registration of rental contracts with the AFIP, which are the benefits for owners and tenants (Illustrative Image Infobae)
General Resolution 5545/2024 of the Federal Public Revenue Administration (AFIP), which eliminated the obligation to register rental contracts for urban and rural properties intended for housing, aims to reduce the administrative and bureaucratic burden on taxpayers.
Although some administrative burdens were eliminated, the resolution establishes that both owners and tenants must register their lease contracts to access tax incentives.
This measure seeks to balance the reduction of bureaucratic procedures with the need to maintain adequate fiscal control. This requirement applies to physical and digital contracts and must be fulfilled through the AFIP's “Registro de Locaciones de Inmuebles – RELI – CONTRIBUYENTE” service.
"This measure contributes to the creation of a national state in favor of citizens within a framework of simplification, efficiency, effectiveness and quality in the provision of services," said AFIP.
Yanina Beade , from the accounting firm of the same name and tax expert, highlighted to Infobae that this regime includes several benefits. “If the owner is a self-employed taxpayer, the rental of properties will be considered a single operating unit, regardless of the number of properties rented,” she said.
Furthermore, in relation to the Personal Property Tax, landlords can benefit from the exemption of property intended for rental as a dwelling, provided that its valuation does not exceed the exempt minimum.
Regarding Income Tax, the AFIP allows both owners and tenants to deduct up to 10% of the annual amount of rent.
Additionally, “employees and retirees will no longer be required to attach a copy of the rental contract to the Income Tax Deduction Registration and Update System (Siradig) for Income Tax deductions,” Beade said.
However, he stressed that tenants can deduct up to 40% of the annual Non-Taxable Minimum, although they must continue to present the invoice or equivalent document.
“A taxpayer without the benefit of a rental deduction, with a gross annual salary of $24,000,000, would pay $5,227,241.25 in taxes,” explained the tax specialist.
In contrast, another person with the rental deduction benefit would pay $4,840,811.88, reflecting a tax savings of $363,429.38; this shows how the rental deduction can significantly reduce the tax burden of those who rent their homes.
“Let us suppose two taxpayers, both employees, with a gross monthly salary of $2,000,000,” Beade exemplified below:
Taxpayer A (without rental deduction benefit):
Taxpayer B (with rental deduction benefit):
Landlords and tenants who register their rentals with the AFIP have access to tax benefits
"When the properties belong to subjects residing abroad, the registration will be the responsibility of their representatives in the country," states the AFIP regulation, led by Florencia Misrahi .
This includes all contracts concluded electronically through digital platforms and/or mobile applications.
To complete the registration, taxpayers must indicate whether the real estate is urban or rural and the type of operation (permanent or temporary).
They are also required to have an active CUIT and declare and keep their address updated.
Registered contracts that have not been modified will remain valid without the need for updates.
“Those active contracts from October 2023 to August 2024, which were modified, must be registered before September 30. In dollars, the contracts will be converted to pesos using the selling exchange rate of Banco Nación Argentina on the business day prior to the contract,” Beade concluded.
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Source:
Nuevos requisitos y beneficios fiscales para alquilar: todo lo que tienen que saber propietarios e inquilinos
Una nueva resolución de la AFIP, si bien eliminó la obligación de registrar los contratos de alquiler, posibilita inscribirlos para acceder a beneficios fiscales. Esta medida busca simplificar y reducir la carga administrativa de los contribuyentes
www.infobae.com
September 07, 2024
A new AFIP resolution, while eliminating the obligation to register rental contracts, makes it possible to register them to access tax benefits. This measure seeks to simplify and reduce the administrative burden on taxpayers.
By Jose Luis Cieri
There are new rules for the registration of rental contracts with the AFIP, which are the benefits for owners and tenants (Illustrative Image Infobae)
General Resolution 5545/2024 of the Federal Public Revenue Administration (AFIP), which eliminated the obligation to register rental contracts for urban and rural properties intended for housing, aims to reduce the administrative and bureaucratic burden on taxpayers.
Although some administrative burdens were eliminated, the resolution establishes that both owners and tenants must register their lease contracts to access tax incentives.
This measure seeks to balance the reduction of bureaucratic procedures with the need to maintain adequate fiscal control. This requirement applies to physical and digital contracts and must be fulfilled through the AFIP's “Registro de Locaciones de Inmuebles – RELI – CONTRIBUYENTE” service.
"This measure contributes to the creation of a national state in favor of citizens within a framework of simplification, efficiency, effectiveness and quality in the provision of services," said AFIP.
Yanina Beade , from the accounting firm of the same name and tax expert, highlighted to Infobae that this regime includes several benefits. “If the owner is a self-employed taxpayer, the rental of properties will be considered a single operating unit, regardless of the number of properties rented,” she said.
Furthermore, in relation to the Personal Property Tax, landlords can benefit from the exemption of property intended for rental as a dwelling, provided that its valuation does not exceed the exempt minimum.
Regarding Income Tax, the AFIP allows both owners and tenants to deduct up to 10% of the annual amount of rent.
Additionally, “employees and retirees will no longer be required to attach a copy of the rental contract to the Income Tax Deduction Registration and Update System (Siradig) for Income Tax deductions,” Beade said.
However, he stressed that tenants can deduct up to 40% of the annual Non-Taxable Minimum, although they must continue to present the invoice or equivalent document.
Examples
To illustrate the fiscal impact, there are two scenarios for taxpayers in the Income Tax.“A taxpayer without the benefit of a rental deduction, with a gross annual salary of $24,000,000, would pay $5,227,241.25 in taxes,” explained the tax specialist.
In contrast, another person with the rental deduction benefit would pay $4,840,811.88, reflecting a tax savings of $363,429.38; this shows how the rental deduction can significantly reduce the tax burden of those who rent their homes.
“Let us suppose two taxpayers, both employees, with a gross monthly salary of $2,000,000,” Beade exemplified below:
Taxpayer A (without rental deduction benefit):
- Annual Gross Salary: $24,000,000.
- Non-taxable minimum: $3,091,035 (these amounts are applicable to remuneration received from January 1, 2024, to August 31, 2024, and to final settlements accrued from July 1, 2024, and received until August 31, 2024.)
- Tax base: $20,908,965 ($24,000,000-$3,091,035).
- Effective tax rate: 25% (used as an example, to make the calculation easier for the reader)
- Annual Income Tax: $5,227,241.25 ($20,908,965 x 25%)
Taxpayer B (with rental deduction benefit):
- Annual Gross Salary: $24,000,000.
- Non-taxable minimum: $3,091,035
- Deduction for rent: $1,236,414 (40% of the annual non-taxable minimum, which in this case is $3,091,035 x 40%) plus 10% of the non-taxable minimum for being a tenant).
- Taxable base after deduction: $19,363,247.50 ($24,000,000 - $3,091,035 - $1,236,614 - $309,103.50)
- Effective tax rate: 25%.
- Annual Income Tax: $4,840,811.88 ($19,363,247.50 x 25%).
Landlords and tenants who register their rentals with the AFIP have access to tax benefits
Impact comparison
“We see that taxpayer A (without deduction) pays $5,227,241.25 in Income Tax; while taxpayer B (with deduction for rent) pays $4,4840,811.88 in Income Tax. This generates a tax saving for taxpayer B: $363,429.38; at the same time, the deduction for rent can significantly reduce the tax burden of a taxpayer who rents his home, allowing him to pay less in Income Tax,” Beade explained.Other relevant aspects
Additionally, General Resolution 5547/2024 indicates that people who wish to benefit from taxes must declare their rental contracts in the “Registro de Locaciones de Inmuebles – RELI” service on the agency's website."When the properties belong to subjects residing abroad, the registration will be the responsibility of their representatives in the country," states the AFIP regulation, led by Florencia Misrahi .
This includes all contracts concluded electronically through digital platforms and/or mobile applications.
To complete the registration, taxpayers must indicate whether the real estate is urban or rural and the type of operation (permanent or temporary).
They are also required to have an active CUIT and declare and keep their address updated.
Temporary, too
The AFIP also eliminated the obligation to register contracts for rural and urban properties intended for temporary rental.Registered contracts that have not been modified will remain valid without the need for updates.
“Those active contracts from October 2023 to August 2024, which were modified, must be registered before September 30. In dollars, the contracts will be converted to pesos using the selling exchange rate of Banco Nación Argentina on the business day prior to the contract,” Beade concluded.
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