Tax Incentives for Repatriation of Financial Assets - Introduction
In a strategic move to bolster economic stability, the Argentine government, through Decree No. 281/2024 published on 27 March 2024, has extended an attractive incentive for the repatriation of financial assets held abroad by its citizens. Originally set to conclude by 31 March 2024, the deadline for this initiative has now been extended to 30 April 2024, allowing taxpayers additional time to benefit from favorable Personal Assets Tax (PAT) rates.Key Highlights of the Decree
The essence of this decree lies in its provision for equalizing the PAT rates for assets located abroad with those within Argentina. To qualify for this benefit, taxpayers must repatriate at least 5% of their total financial assets held overseas before the new deadline. This move is aimed at encouraging the return of capital to the country, thereby injecting liquidity into the national economy.Conditions for Tax Parity
To enjoy the harmonized tax rates, the repatriated funds must be:- Deposited in accounts (including savings, current accounts, or time deposits) at Argentine financial institutions in the name of the account holder, remaining until 31 December of the repatriation year.
- Converted through the single and free foreign exchange market via the receiving financial entity.
- Utilized in the purchase of certificates of participation and/or debt securities from productive investment trusts established by the Banco de Inversión y Comercio Exterior, with the investment retained until 31 December of the repatriation year.
- Invested in shares of mutual funds compliant with the National Securities Commission (CNV) requirements, maintained until 31 December of the repatriation year.