Law N° 5,616, published in the City of Buenos Aires Official Gazette on September 8, 2016, adheres to the National Tax Amnesty Program and regulates a Payment Plan.
Hereinafter we include the main aspects of the aforementioned law.
- Tax Amnesty Program
The City of Buenos Aires adhered to the Tax Amnesty Program regulated by National Law N° 27,260. In this context, the assets declared under such program will not trigger any tax in the City of Buenos Aires, notwithstanding the rights of the Buenos Aires Tax Authority ("AGIP") of verification and/or control regulated in the Tax Code.
Deposits of domestic or foreign currency in Argentine banks are not subject to withholdings in the City of Buenos Aires.
The operations made in order to declare the assets as property of the declarant will not trigger any tax.
- Payment Plan
1.1. Who can access to such benefit?
The tax payers and the entities or natural persons responsible for the payment of taxes triggered in the City of Buenos Aires, for those tax obligations due by May 31, 2016 or for the infractions related with such tax obligations.
1.2. When can be requested the benefit?
The benefit can be requested as from the day the AGIP stipulates in the regulation of the Plan and up to December 31, 2016.
1.3. Which are the requirements to access the benefits?
- Withdrawal of all actions and rights, including the right to request a recovery action, and acceptance of judicial fees.
- Payment of the tax, fines and interest through one of the following payment plans:
- Total payment with a 15% reduction of the interest;
- Payment through one of the payments plans regulated by the AGIP, which will have the following characteristics:
- For those taxpayer not included in the especial control system: one down payment representing 5% of the debt and the outstanding balance in 90 monthly installments -at most- with a monthly interest of 1,5%.
- For those taxpayers considered "Major Taxpayers": one down payment representing 15% of the debt and the outstanding balance in 90 monthly installments -at most- with a monthly interest of 1,8%. The taxpayer may opt to cancel the whole payment plan in advanced.
- For withholding agents, for those withholdings not made or not deposited with the AGIP: one down payment representing 15% of the debt and the outstanding balance in 36 monthly installments -at most- with a monthly interest of 1,8%.
1.4. Which are the benefits?
- Suspension of criminal proceedings and interruption of criminal statute of limitations, provided that there is not final judgment.
- The whole payment or the subscription of a payment plan will result in the extinction of criminal action, provided that there is not final judgment.
- Release and/or forgiveness of:
- Fines and other sanctions as long as there is not final judgment.
- Interest, in the portion that exceeds:
- 10% of the tax debt for those obligations corresponding to fiscal year 2015 and monthly obligations due by May 31, 2016.
- 25% of the tax debt for those obligations corresponding to fiscal years 2013 and 2014.
- 50% of the tax debt for those obligations corresponding to fiscal years 2011 and 2012.
- 75% of the tax debt for those obligations corresponding to fiscal years 2010 and the previous periods.
1.5. Which are the consequences of not fulfilling the Plan´s requirements?
- The criminal action will be reinitiated or the criminal complain will be filed;
- The criminal statue of limitation will resume; and
- The payment of the remaining debt should be made in cash.