Argentine taxpayers that are evaluating whether to elect the one-time optional tax revaluation mechanism have one additional month to request such option.

On February 27, 2019, Argentina's Federal Tax Agency issued General Resolution No. 4,429, which extends the deadlines for taxpayers to elect the tax revaluation option.

Background

The tax reform enacted in December 2017 (Law 27,430) established a tax revaluation option, which is a one-time mechanism for Argentine-resident individuals and companies to revaluate for tax purposes their assets located in Argentina that generate taxable income. (For more information, see Tax Alert 2018-0932).

Taxpayers determine the new tax value of the assets by applying a "revaluation factor" to the tax value originally determined in each year or period of the asset's acquisition or construction. For immovable or movable property qualifying as fixed assets, an independent appraiser may determine the value under certain circumstances. This mechanism requires the payment of a one-time special tax on the amount of the revaluation. The special tax rates are from 5% to 15%, depending on the type of asset.

The tax revaluation option applies to the first tax year ending after December 29, 2017 (i.e., the enactment date of Law 27,430).

The deadline to elect the tax revaluation option for companies with a tax year ending in December was February 28, 2019; for companies with a tax year ending from January to November, the deadlines ranged from March 29, 2019 to November 29, 2019, depending on the month in which the tax year ends.

General Resolution No. 4,429

The Resolution extends the deadlines for electing the tax revaluation option as follows:

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