2022-01-12-KPMG_Global-Argentina_–_Wealth_Tax_Changes_to_Non_Taxable_Minimum,_Tax_Rates_4页_337kb

Argentina's Wealth Tax Law (Law 27.667) has been amended by General Resolution 912/2021, effective for the 2021 fiscal year and thereafter. Key changes include a higher non-taxable minimum of ARS 6,000,000, an exemption for residential real estate valued at or below ARS 30,000,000 (if owned and occupied by the taxpayer), and revised tax rates.

The new tax rates for assets held in Argentina are as follows:

• From ARS 3,000,000 to 6,500,000, a rate of 0.75% applies, resulting in a tax of ARS 15,000.
• For assets between ARS 6,500,000 and 18,000,000, the levy is ARS 41,250 at a rate of 1.00%.
• Above ARS 18,000,000 up to ARS 100,000,000, the tax is ARS 156,250 at 1.25%.
• Assets exceeding ARS 100,000,000 have a rate of 1.50% (for amounts above that, an additional 0.25% applies), and assets over ARS 300,000,000 are taxed at 1.75%.

For worldwide assets, a separate rate structure applies: no tax on fiscal years before 2021; from 2021 onward, worldwide assets are taxed based on value exceeding the non-taxable minimum, with a top rate of 2.25% for assets above ARS 18,000,000.

These changes provide relief for those with total asset values near the non-taxable minimum, potentially reducing tax liability. However, they may increase the burden for high-net-worth individuals with significant assets in Argentina or abroad. KPMG recommends updating tax equalization policies and advising affected assignees.

Implications and Next Steps:

• Increased non-taxable minimum from previous thresholds.
• Residential real estate exemptions provide specific relief.
• Taxpayers must review their asset positions due to revised slabs.

These modifications may encourage asset relocation but could impact tax compliance for residents.