On 25 July 2017, AFIP Resolution No. 4096 (GR) issued by the Federal Public Revenue Agency – AFIP was published in the Official Gazette. This GR establishes the creation of the Tax Information Registry of Exploited Rural Properties (the Registry). This Registry will provide AFIP with a broader knowledge on the production of grains and on whether the production comes from properties exploited by their owners or by third parties. Moreover, it will prevent tax payers from having to make personal diligences given that the Registry will function on line. The main items addressed by this GR are the following:
- The requirements, procedures and conditions that the persons who perform exploitation operations of rural lands on their own account as well as on behalf of third parties must comply with in order to be included in the Registry.
- The obligation of both legal entities and individuals to register. If the owner of the land resides abroad, his or her representative in the country is obliged to make the registration. Regarding legal entities, undivided estates, enterprises, trusts, co-ownerships, associations or any type of entities that are organized in the country, as well as establishments organized as stable entities that are owned by individuals or legal entities from abroad, they will all have to comply with the registration requirement as long as they grow grains and seeds -cereals and oilseeds- and dry legumes –beans, peas and lentils.
- The compliance with the two types of registrations, one regarding the domicile of the exploitation and the other one regarding the activity that is performed (the crops).
- Pursuant the income tax regime established by General Resolution 830/2000 (AFIP), the obligation of the withholding agents to verify the evidences of registration from the beneficiaries of the corresponding payments in the Registry for the exploited rural lands. Lack of registration implies paying a higher amount for the Income Tax withholding, among other consequences.
- The cancellation of what was established in GR 2820 regarding rural properties that regulate the purchase, sale and lease operations of properties and the Registry of Real Estate Operations.