May 5, 2021
Argentine federal tax authorities issue procedure for registering real estate projects for the promotional regime for construction and access to housing
The resolution establishes the rules eligible companies and individuals applying for the promotional regime for construction must follow to register real estate projects and access the voluntary disclosure program for local and foreign currency that will be invested in real estate projects and was previously undeclared.
On April 27, 2021, the Argentine federal tax authorities (AFIP) published, in the Official Gazette, Resolution 4976/2021 (Resolution 4976), which sets forth the procedure individuals and companies must follow to register real estate projects for the promotional regime for construction. It also establishes the procedure for declaring local and foreign currency under the voluntary disclosure program. For more information on this regime, see Tax Alert 2021-0612.
On March 12, 2021, Argentina enacted Law 27,613, which established a promotional regime for construction with two different incentives: tax incentives for construction and a voluntary disclosure program for local and foreign currency to be invested in real estate projects in Argentina. Decree 244, issued on April 18, 2021, established that the AFIP will be in charge of implementing the registry for investors to report the details of real estate projects eligible for the promotional regime.
Resolution 4976 establishes the procedure for the registration of real estate projects included in the promotional regime and for declaring local and foreign currency to be invested in construction projects.
Registration of real estate projects
Eligible individuals and companies must register real estate projects that began on or after March 12, 2021, or were less than 50% completed as of that date. Individuals and companies must register the projects through the "Real Estate Projects Registry" (REPI) service on the AFIP's website. Before the projects can be registered, investors must report the project's address in the "Registry System" service under the "Works Under Construction" section.
If the real estate project is begun before March 12, 2021, taxpayers must prove that the project is less than 50% completed by submitting an opinion of a licensed professional competent in the matter, with the signature certified by the competent professional authority. For projects initiated on March 12, 2021 and thereafter, investors must attach the same information they submitted to the competent real estate authorities or an opinion of a licensed professional with the signature certified by the competent professional authority.
Real estate projects that have been accepted will be granted a "Real Estate Project Registration Code" (COPI) and a "Proof of Project Registration."
Voluntary disclosure program for local and foreign currency to be invested in construction projects
Resolution 4976 requires eligible companies that participate in the voluntary disclosure program for local and foreign currency to comply with the "Voluntary Disclosure Program to Reactivate Construction." In addition, the resolution establishes the due dates for filing Form 1130 and paying the special tax due on the declared funds credited to the Special Deposit and Cancellation Account for Argentine Construction (CECON.Ar):
Individuals and companies complying with the voluntary disclosure program must report the COPI and the amount of the investment made by March 31, 2023 or within six months of investing all the declared funds in real estate projects, whichever is earlier.