July 24, 2014
Review of methodologyTuesday, January 7, 2014
Gov’t takes look at wealth tax
The national government will amend the way it calculates personal wealth tax and will use the market value of properties rather than their declared fiscal value, the head of the AFIP tax bureau Ricardo Echegaray revealed yesterday.
“We’re going for the market value,” Echegaray told reporters during a news conference at the AFIP headquarters in downtown Buenos Aires.
The tax is currently aimed at real estate properties or certain assets with more than 305,000 pesos in fiscal value, a figure ostensibly lower than market appraisals.
The current tax value was set in 2007 and real estate makes up for 44 percent of the assets reached. Ever since the instrument was created in 1991, this amount was updated only once (until then, assets worth more than 102,300 pesos were taxed).
“The personal wealth tax is paid by only 450,000 to 500,000 taxpayers and makes up for just one percent of total tax revenue,” Echegaray added.
According to Echegaray, changes to this tax as well as other fiscal changes, will become part of the so-called “Anti-Evasion Package III” which will enter the National Congress on February to be discussed during extraordinary sessions.
The official refrained from revealing further details “because we’re entering the final stage (of this process),” although he acknowledged that “special situations will be considered” by the agency he leads.
In 2013, the personal wealth tax brought 10.296 billion pesos to the tax bureau — 41.8 percent more than the previous year.
Days ago, Echegaray presented the final 2013 tax revenue figures and celebrated a 26.3 percent increase compared to 2012, in a news conference dominated by his defence from accusations over his alleged luxury holiday to Rio de Janeiro during the New Year’s holiday.
Herald with DyN