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The tax that the owners had to pay when they sold and they are not going to pay it anymore - La Nacion Propiedades
Source:
www.lanacion.com.ar
July 15, 2024
They eliminated a tax that had to be paid by those who sell a property purchased before 2018 and that was not their permanent home Hernan Zenteno - THE NATION
Last Monday, the fiscal package of the Ley Bases was published in the Official Gazette. It was approved in the Chamber of Deputies after undergoing modifications in the Senate. Among other changes, it repealed the Real Estate Transfer Tax (ITI), which required owners to pay 1.5% of the sale of a property that had been acquired before December 2017 and that was not a sole or permanent residence.
That is, until Monday, anyone who sold a property , for example, for US$100,000, bought before the beginning of 2018 and in which they did not live, had to pay US$1,500, at the official dollar rate, as an ITI. “Today we put an end to the ITI, a disastrous tax on real estate transfers, which had been in force since 1991,” declared Minister Caputo himself on his social media account X, a few minutes after publication.
https://drive.google.com/file/d/1G58xZr3_WUlsfkjELMyCkhgmLcZpykYw/view
President Javier Milei reposted a message from the Ministry of Economy's account in which he celebrated the repeal of the Real Estate Transfer Tax (ITI). Meanwhile, economist Roberto Cachanosky wrote on his X account that the elimination of this tariff made real estate transactions more expensive.
The Argentine Real Estate Chamber welcomed the announcement of the repeal of the ITI through a statement on its Facebook account. “At the Argentine Real Estate Chamber we believe in the beneficial impact of this repeal, taking into account its relationship with the Cedular Tax, introduced by Law No. 27,430, which taxed profits from the sale of real estate. In addition, it was established that there is no retroactivity of the Cedular Tax for individuals and the consultation of foreign residents is eliminated. This measure represents an important step towards a more accessible and dynamic future for the real estate sector,” it indicated.
The initiative is part of a series of changes that, as soon as Javier Milei assumed the presidency last December, he sent to Congress in an ambitious Omnibus Bill that, among its 664 articles, proposed to alleviate the tax burden on the sale of real estate. Among its measures, it sought to repeal the ITI tax, which had been in force since 1991 under Law 23,905.
The elimination of the ITI does not mean that all property owners in the country will stop paying a tax for selling their property. This is because the ITI coexisted with another burden, the Tax on Income Taxes , which taxes the difference between the purchase and sale, less the cost updated by the Consumer Price Index (CPI) and the expenses for properties that are sold and were purchased since January 2018.
But the Ley Bases does not also repeal this last tax, but only the ITI. That is to say that the repealed tax (ITI) is no longer paid on properties purchased before 2018 at the time they are sold, but the Cedular Tax continues to be paid on those that were purchased from 2018 onwards when they are sold. And that are not the permanent residence of their owner.
Julián González Mantelli, a notary and president of the Tax Law Institute of the College of Notaries of the City of Buenos Aires , told LA NACION that the ITI “was distorting and, in addition, the situation generated by the repeal of this tax means that where there used to be a tax there is now nothing, but there is a difference in timing: whoever bought before 2018 does not pay and whoever bought after, pays the difference between the purchase and the sale . One tax was repealed without repealing the other. If there had been a state tax policy, all taxes for the seller would have been repealed,” he said.
A concrete example: if a property was purchased for US$100,000 from 2018 and sold for US$130,000, the taxpayer must pay 15% of the difference for the Income Tax : in the example given, US$30,000. That is, he must pay a tax of US$4,500 -with index adjustments and expenses-.
González Mantelli also explained that if a property was purchased for US$100,000 from 2018 and sold for the same amount this year , there is no difference in dollars but the system is prepared to convert to pesos, so the US$100,000 of the purchase is not the same US$100,000 of the sale converted into pesos. “The deduction of today's price from the cost only applies to the CPI and the difference generates 15% Cedular Profits,” he said.
Regarding whether this measure could encourage investment in the real estate sector, González Mantelli denied this possibility and added that the existence or not of the ITI was not representative for the sector. “No seller has taken this tax into account and discovering that it no longer exists is not going to motivate a sale ,” he said.
The notary described with another example the possible scenario that the market will face: “Assuming that a person bought a garage in the same building in 2015 and another in 2019 and today wants to sell them, for the one acquired in 2015 he will stop paying the 1.5% of the value of the ITI now repealed but for the one bought in 2019 he will have to pay the Income Tax when he completes his sale transaction.”
www.buysellba.com
Source:
El impuesto que tenían que pagar los propietarios cuando vendían y ya no lo van a pagar más
El ITI obligaba a pagar el 1,5% de la venta de una propiedad adquirida antes de diciembre de 2017
www.lanacion.com.ar
July 15, 2024
They eliminated a tax that had to be paid by those who sell a property purchased before 2018 and that was not their permanent home Hernan Zenteno - THE NATION
Last Monday, the fiscal package of the Ley Bases was published in the Official Gazette. It was approved in the Chamber of Deputies after undergoing modifications in the Senate. Among other changes, it repealed the Real Estate Transfer Tax (ITI), which required owners to pay 1.5% of the sale of a property that had been acquired before December 2017 and that was not a sole or permanent residence.
That is, until Monday, anyone who sold a property , for example, for US$100,000, bought before the beginning of 2018 and in which they did not live, had to pay US$1,500, at the official dollar rate, as an ITI. “Today we put an end to the ITI, a disastrous tax on real estate transfers, which had been in force since 1991,” declared Minister Caputo himself on his social media account X, a few minutes after publication.
https://drive.google.com/file/d/1G58xZr3_WUlsfkjELMyCkhgmLcZpykYw/view
President Javier Milei reposted a message from the Ministry of Economy's account in which he celebrated the repeal of the Real Estate Transfer Tax (ITI). Meanwhile, economist Roberto Cachanosky wrote on his X account that the elimination of this tariff made real estate transactions more expensive.
The Argentine Real Estate Chamber welcomed the announcement of the repeal of the ITI through a statement on its Facebook account. “At the Argentine Real Estate Chamber we believe in the beneficial impact of this repeal, taking into account its relationship with the Cedular Tax, introduced by Law No. 27,430, which taxed profits from the sale of real estate. In addition, it was established that there is no retroactivity of the Cedular Tax for individuals and the consultation of foreign residents is eliminated. This measure represents an important step towards a more accessible and dynamic future for the real estate sector,” it indicated.
The one that is repealed and the one that continues
The fiscal package enacted by the Executive also includes the declaration of a public administrative, economic, financial and energy emergency for one year and the privatization of some companies.The initiative is part of a series of changes that, as soon as Javier Milei assumed the presidency last December, he sent to Congress in an ambitious Omnibus Bill that, among its 664 articles, proposed to alleviate the tax burden on the sale of real estate. Among its measures, it sought to repeal the ITI tax, which had been in force since 1991 under Law 23,905.
The elimination of the ITI does not mean that all property owners in the country will stop paying a tax for selling their property. This is because the ITI coexisted with another burden, the Tax on Income Taxes , which taxes the difference between the purchase and sale, less the cost updated by the Consumer Price Index (CPI) and the expenses for properties that are sold and were purchased since January 2018.
But the Ley Bases does not also repeal this last tax, but only the ITI. That is to say that the repealed tax (ITI) is no longer paid on properties purchased before 2018 at the time they are sold, but the Cedular Tax continues to be paid on those that were purchased from 2018 onwards when they are sold. And that are not the permanent residence of their owner.
Julián González Mantelli, a notary and president of the Tax Law Institute of the College of Notaries of the City of Buenos Aires , told LA NACION that the ITI “was distorting and, in addition, the situation generated by the repeal of this tax means that where there used to be a tax there is now nothing, but there is a difference in timing: whoever bought before 2018 does not pay and whoever bought after, pays the difference between the purchase and the sale . One tax was repealed without repealing the other. If there had been a state tax policy, all taxes for the seller would have been repealed,” he said.
A concrete example: if a property was purchased for US$100,000 from 2018 and sold for US$130,000, the taxpayer must pay 15% of the difference for the Income Tax : in the example given, US$30,000. That is, he must pay a tax of US$4,500 -with index adjustments and expenses-.
González Mantelli also explained that if a property was purchased for US$100,000 from 2018 and sold for the same amount this year , there is no difference in dollars but the system is prepared to convert to pesos, so the US$100,000 of the purchase is not the same US$100,000 of the sale converted into pesos. “The deduction of today's price from the cost only applies to the CPI and the difference generates 15% Cedular Profits,” he said.
Regarding whether this measure could encourage investment in the real estate sector, González Mantelli denied this possibility and added that the existence or not of the ITI was not representative for the sector. “No seller has taken this tax into account and discovering that it no longer exists is not going to motivate a sale ,” he said.
The notary described with another example the possible scenario that the market will face: “Assuming that a person bought a garage in the same building in 2015 and another in 2019 and today wants to sell them, for the one acquired in 2015 he will stop paying the 1.5% of the value of the ITI now repealed but for the one bought in 2019 he will have to pay the Income Tax when he completes his sale transaction.”
www.buysellba.com
