On January 30, 2020, Decree No. 116/2020 ("Decree") was published in the Official Gazette, amending Decree No. 99/19 regarding Personal Assets Tax ("PAT") benefits applicable to the repatriation of assets.
It should be noted that under the terms of Decree No. 99/19, rates applicable to foreign assets will be the same as those applicable to assets located in Argentina if taxpayers repatriate before March 31 at least 5% of the total value of the assets located abroad. In that case, and as long as the funds remain deposited until December 31 of the repatriation year, the rates applicable to assets located in Argentina will apply.
The Decree establishes that the PAT aggravated rates scale will not be applicable when:
- The repatriated funds remain deposited in a bank account (savings account, checking account, fixed term deposit, etc.) opened in an Argentine financial entity until December 31 of the repatriation year.
- The funds are converted into Argentine pesos, using the Argentine financial entity that received the funds from abroad.
- The participation certificates and/or debt titles of productive investment trusts created by the Banco de Inversión y Comercio Exterior are acquired, provided that the investments remain under the ownership of the taxpayer until December 31 of the repatriation year.
- The subscription or acquisition of investment funds quotas meet the requirements of the Argentine Securities and Exchange Commission ("CNV"), provided that the quotas remain under the ownership of the taxpayer until December 31 of the repatriation year.
In case the repatriated funds were partially affected by any of these purposes, the non-affected balance will have to remain deposited in an Argentine financial entity until December 31 of the repatriation year.
The Decree establishes that the Federal Tax Authority will issue the necessary rules to regulate the repatriation of funds.