BuySellBA
Administrator
They eliminated a tax that had to be paid by those who sold a property purchased before 2018 - La Nacion Propiedades
Source:
www.lanacion.com.ar
July 10, 2024
The ITI required paying 1.5% of the sale of a property acquired before December 2017
A tax that had to be paid by those who sell a property purchased before 2018 has been eliminatedDaniel Basualdo
The National Government published in the Official Gazette the fiscal package of the Ley Bases, approved in the Chamber of Deputies after being modified in the Senate . Among the changes, the repeal of the Real Estate Transfer Tax (ITI) was proposed , 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 today, whoever 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 value, as ITI.
A few minutes after the news was published in the Official Gazette, it was the Minister of Economy, Luis Caputo, who published a message on his social account X: “Today we ended the ITI, a disastrous tax on real estate transfers, which had been in force since 1991.”
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 Javier Milei sent to Congress as soon as he assumed the presidency 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.
https://drive.google.com/file/d/1G58xZr3_WUlsfkjELMyCkhgmLcZpykYw/view
The elimination of the ITI does not mean that all property owners in the country will stop paying a tax for selling their property. Since 2018, the ITI has coexisted with another tax, 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 expenses. A concrete example, if a property was purchased for US$100,000 and sold for US$130,000, the taxpayer must pay 15% of the difference: in the example given, US$30,000. That is, they must pay a tax of US$4,500 - with the index adjustments and expenses.
But the Ley Bases does not also repeal this last tax but only the ITI . The notary González Mantelli, then, describes with an example the possible scenario that the market could face: “Assuming that a person bought a garage in the same building in 2015 and another garage in 2019 and today wants to sell them, for the one acquired in 2015 he would stop paying 1.5% of the value for the ITI but for the one bought in 2019 he would have to pay the Tax on Income Tax.”
In short, with this measure, those who sell a property purchased before 2018 (other than a sole and permanent residence) would stop paying the ITI, while those who sell one that they bought after January 1, 2018 would continue to pay the Income Tax .
www.buysellba.com
Source:
Eliminaron un impuesto que tenían que pagar quienes vendieran una propiedad comprada antes de 2018
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 10, 2024
The ITI required paying 1.5% of the sale of a property acquired before December 2017
A tax that had to be paid by those who sell a property purchased before 2018 has been eliminatedDaniel Basualdo
The National Government published in the Official Gazette the fiscal package of the Ley Bases, approved in the Chamber of Deputies after being modified in the Senate . Among the changes, the repeal of the Real Estate Transfer Tax (ITI) was proposed , 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 today, whoever 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 value, as ITI.
A few minutes after the news was published in the Official Gazette, it was the Minister of Economy, Luis Caputo, who published a message on his social account X: “Today we ended the ITI, a disastrous tax on real estate transfers, which had been in force since 1991.”
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 Javier Milei sent to Congress as soon as he assumed the presidency 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.
https://drive.google.com/file/d/1G58xZr3_WUlsfkjELMyCkhgmLcZpykYw/view
The elimination of the ITI does not mean that all property owners in the country will stop paying a tax for selling their property. Since 2018, the ITI has coexisted with another tax, 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 expenses. A concrete example, if a property was purchased for US$100,000 and sold for US$130,000, the taxpayer must pay 15% of the difference: in the example given, US$30,000. That is, they must pay a tax of US$4,500 - with the index adjustments and expenses.
But the Ley Bases does not also repeal this last tax but only the ITI . The notary González Mantelli, then, describes with an example the possible scenario that the market could face: “Assuming that a person bought a garage in the same building in 2015 and another garage in 2019 and today wants to sell them, for the one acquired in 2015 he would stop paying 1.5% of the value for the ITI but for the one bought in 2019 he would have to pay the Tax on Income Tax.”
In short, with this measure, those who sell a property purchased before 2018 (other than a sole and permanent residence) would stop paying the ITI, while those who sell one that they bought after January 1, 2018 would continue to pay the Income Tax .
www.buysellba.com
