On October 13, 2016, the Argentine Government extended Tax Amnesty Regime benefits to saving and capitalization insurance hired abroad.
Through General Resolution No. 3944/2016, issued by the Argentine Tax Authority, and Resolution No. 40,090/2016, issued by the Argentine Superintendence of Insurance, both published in the Official Gazette on October 14, 2016, the Argentine Government extends the Tax Amnesty Regime benefits established by Law No. 27,260 to insurance with savings and capitalization taken out abroad in violation of Argentine legislation.
According to the General Resolution No. 3944/2016, taxpayers may disclose insurances with savings and capitalization that were taken out abroad before July 22, 2016 as long as they are rescinded or surrendered before Law No. 27,260's disclosure deadline.
Tax Amnesty Regime benefits will be applied to this kind of insurances, specifically regarding taxes that should have been paid, and claims or penalties that may have applied regarding Tax Procedural Law and Criminal Tax Law. We refer to the article published in Marval News # 162, June 30, 2016 which describes Tax Amnesty Regime benefits. These kind of insurances will also be exempt from penalties that may have applied as a consequence of Law No. 12,988, which establishes that Argentine insurable interests may not be covered under policies taken out with insurers not authorized to do business in Argentina by the Argentine Superintendence of Insurance (for further analysis of the scope of this regulation, we refer to the article published in Marval News # 17, May 30, 2003).
The General Resolution No. 3944/2016 states that this disclosure made according to Tax Amnesty Regime terms will be exempt from the administrative sanctions established by Law No. 12,988, i.e., fines which may amount to up to 25 times the amount of the premium.
Resolution No. 40,090/2016 issued by the Argentine Superintendence of Insurance states that credits originated in insurance policies taken out abroad and surrendered or rescinded in the terms of the Tax Amnesty Regime are included in section 37 (subsection d) Law No. 27,260 which refers to "goods in the country and abroad, including credits and all kind of right susceptible to economic value."
In order to make this disclosure effective, taxpayers must present the Argentine Tax Authority with the surrender value certificate issued by the foreign insurance company. The surrender value will be appraised from this certificate. The surrender value will be valued considering the foreign currency at the exchange rate determined by the Argentine National Bank, in force on July 22, 2016.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
