Argentinean Government announced that the country declared $97.842 billion in assets by the completion of a second phase of a broad tax amnesty programme that ended on December 31, 2016. Companies and individuals can still declare their assets until March 31, 2017.
The government launched the amnesty in order to bring billions of dollars of offshore wealth and unregistered funds into the country’s formal economy (estimated $400bn total). It encourages individuals and companies to bring overseas assets into Argentina to stimulate the local economy. Individuals and companies will have three ways to declare their assets:
Earlier in 2016, Finance Minister Alfonso Prat-Gay announced that the first stage of the amnesty 2016-2017 brought nearly $7bn back into the country. Now, Argentina declared $97.842 billion in assets of which the vast majority, $84.13 billion, were assets held abroad.
Companies and individuals can still declare their assets until March 31, though the penalty for non-real estate assets will rise to a maximum, 15 percent. Billions more are expected to be declared, particularly in properties that are charged with 5% penalty.
‘With 46 percent of undeclared assets abroad held in the United States, the amnesty programme is likely benefiting from a tax information agreement with the U.S., signed on December 23’, Reuters reported.
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