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Rentals: AFIP took a measure that will benefit owners and tenants - Infobae
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Alquileres: la AFIP tomó una medida que beneficiará a propietarios e inquilinos
El organismo fiscal reglamentó nuevas prórrogas y deducciones que impactarán en el mercado inmobiliario. Qué debe conocerse para evitar inconvenientes
www.infobae.com
July 18, 2024
The tax authority regulated new extensions and deductions that will impact the real estate market. What you should know to avoid inconveniences
By Jose Luis Cieri
A 10% deduction will be applied to the annual amount of Income Tax for owners and tenants of properties rented as a home.
The Federal Public Revenue Administration (AFIP) has established new deductions and extensions that will impact the real estate market, benefiting both owners and tenants.
According to General Resolution 5521/2024, published in the Official Gazette, a 10% Income Tax deduction of the total annual amount will be applied to owners and tenants who own properties rented as homes.
"This benefit is added to other existing benefits, such as the 40% deduction for the tenant up to an amount equivalent to the non-taxable minimum," the national government reported.
The deduction was also incorporated into Article 85 of the Income Tax Law as an incentive for the leasing of real estate, stipulated in Law No. 27,737.
Word of an expert
Yanina Beade , head of the accounting firm of the same name and tax specialist, explained to Infobae that “for tenants, the resolution allows them to deduct 10% of the amount of annual rent paid, with an established maximum limit. This new deduction is added to the already known one where tenants can access a 40% deduction on the amount of annual rent paid, as long as they do not exceed the amount of the non-taxable minimum.”As an example, if a tenant pays $400,000 per month in rent, it will represent $4,800,000 per year and could be deducted:
- 40% of $4,800,000 will be $1,920,000.
- An additional 10%, resulting in a total of $480,000.
“Now, from your taxable income tax base and only when you present the rental contract and the corresponding payment vouchers, you can deduct up to the sum of $451,683.19 for the 2023 fiscal period (expiring in 2024) and $1,089,368.57 for the year 2024 (expiring in 2025),” Beade clarified.
Source: Yanina Beade Accounting and Tax Study
For owners, the 10% deduction is applied to the gross income obtained from renting the property. Following the example above, the owner receives $4,800,000 annually for renting his property, and can only deduct $451,683.19 in 2023 and $480,000 in 2024 from his gross income before calculating the Income Tax, provided that the rental contract is duly registered with the AFIP.
This tax incentive aims to improve access to rental housing and increase the supply of properties for formal rental, thus contributing to the stability of the real estate market and the economic well-being of taxpayers.
On tax deductions at the AFIP
To obtain this benefit, applicants must report the amount of rent for the 2023 fiscal period using the sworn declaration form F. 572, available in the “Income Tax Deduction Registration and Update System (SIRADIG) - WORKER”.It is essential that the amount of rent paid, stipulated in the lease agreement, is supported by an invoice or document issued by the landlord.
In addition, a copy in PDF format must be submitted to the AFIP for each update of the contract.
Date to file the affidavit
The AFIP also extended the deadline to file the informative sworn declaration and access the tax deduction. The deadline will be until September 30, 2024.Previously, applicants were unable to report the amounts to their employers using the web form, which meant that they were not taken into account for withholding settlements. With the new regulations, the possibility of reporting them in the annual Affidavit was enabled and, starting in 2024, doing so on a monthly basis.
For self-employed workers
Owners registered with Monotributo may also compute the deduction for Income from rentals. The amount of rent paid must be supported by an invoice or equivalent document issued by the landlord, as stipulated in the rental contract.
Doing the math correctly and submitting documentation on time helps to avoid financial and tax problems in the future (Illustrative Image Infobae)
In addition, in the first fiscal period in which the deduction is applied and with each renewal of the contract, the employee 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”.
Tax experts advise workers to take advantage of this deduction, since “in the current economic context, every peso counts,” and this discount “can make a significant difference in the economy of employees” who must pay income tax.
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