The National Constitution sets forth the tax structure of the Province of Buenos Aires. In addition, the Constitution establishes the province’s tax powers as well as the Co-participation Law, which limits those powers.
Therefore, the Province of Buenos Aires’ tax powers are: a) exclusive and executed on a permanent basis (direct taxes); b) concurrent with the federal government on a permanent basis (internal indirect taxes).
In addition the tax co-participation system, pursuant to Law 23.548, restricted the application of some provincial taxes, which are regulated by the Fiscal Code of the Province of Buenos Aires and provincial Tax laws.
Real estate tax
It is an indirect tax which is levied on taxpayers’ payment capacity; it is of real nature, as it does not take into account the taxpayers’ personal conditions.
However, provincial tax policies are designed to levy proportionally higher taxes on those with greater payment capacity.
In the Province this tax is divided into urban and rural. Each of which is taxed differently and established in the annual tax law.
The Province’s Fiscal Code imposes this tax all those who are title holders, owner or holders. The Tax amount results from the each property’s tax valuation, pursuant to Law 10.707 and amendments thereof, which is multiplied by the annual update coefficients as established by the Executive Power each year.
Automobile and Sports vessel tax
The Automobile Tax is also real and direct since it is applied on the taxpayers’ payment capacity, as it does not take into account the taxpayers’ personal conditions.
The tax is levied on car owners residing in the Province. The tax is paid on an annual basis, according to the model-year, manufacturing year, kinds, categories and/or valuations, as established by the tax law. Cars are considered to be registered in the Province if their owners and/ or purchasers reside in the province.
The tax amount results from official agencies’ valuations or sources of information on the automotive market available at the time of issuing the first installment of the automobile tax.
According to the tax laws, there are two kinds of vehicles: those destined to production and those for consumption. The former, as they are similar to capital goods, are taxed with a lower rate.
The insurance value of sports vessels is taken as their market value, or, if there was no value, the value to be assigned by the issuance company.
Gross revenues tax
A tax paid according to the payment capacity as shown by a certain job, occupation or profession.
It is an indirect tax as it is taxed on the taxpayer’s payment capacity. It is real as subjective conditions are not taken into account but the habitual business activity.
This tax is imposed on individuals, companies with or without legal capacity and other entities performing usual business activities for good or valuable consideration.
The tax is determined on the gross revenues tax accrued during the fiscal period. Gross revenues is the value or total amount – in money, in kind or services – accrued for the sale of goods, payment for services or an activity performed, interest, or in general, any transaction.
Stamp tax
It is a tax on property, economic activity and wealth. It is based on an instrumental principle, acts or deeds performed in private or public instruments.
It is an indirect tax levied the taxpayers’ payment ability. It has a formal and objective nature (the taxable event is the document or instrument).
The Tax Code of the Province of Buenos Aires sets forth that payments and financial statements issued by credit card companies are subject to this tax.
All taxpayers who perform economic acts, make contracts and carry out transactions are subject to stamp tax.
If the tax acts are performed by two or more persons, the liability is joint, which means that each party is liable for the total tax.
Tax on the Gratuitous Transfer of Property
This tax is levied on all wealth increase resulting from transfer. The taxable income is determined as any wealth increase that has occurred without any consideration on the part of the beneficiary. The taxable event is, then, performed at the time of the said transfer.
It is a global and personal tax which is imposed on every good received by the beneficiary residing in the province, regardless of the place where the property is registered. In addition, similar taxes imposed by other jurisdictions may be paid on account.
This tax is also levied on goods registered in the province when the beneficiaries are domiciled in another jurisdiction in order to reduce both tax avoidance and possible tax battles with other jurisdictions.
In order to describe the progressive nature of this tax, it is structured with increasing marginal tax rates for the amount transferred. It also has a non-taxable minimum amount of ARS 200,000 in the case of parents, children and spouses.
It is also exempted on single properties, family businesses and community property.
