A Decree 1,206/2016 was published in the Official Gazette of 30th November 2016 and effective from 1st December 2016. This decree amends and clarifies certain aspects of the tax amnesty regime implemented by Decree 895/2016. The main requirements are summarized below:
- Decree 1,206/2016 launches the taxable base of participations in companies, trusts and other legal entities on which the special tax applies. In the case of entities earning active income, the value of the participation is assessed on the net worth of the entity. On the other hand, the entities earning passive income, the value of the participation is calculated on the value of the assets, i.e. without permitting the deduction of liabilities. The definition of “passive” entities must be the one in the Income Tax Law. The Personal Assets Tax Law gives details on how to calculate the taxable base of “active” entities.
- In accordance with Law 27,260 and Decree 895/2016, individuals may have the right to claim ownership and regularize assets that are not formally in their name (i.e. in the name of nominees). In accordance with Decree 12, 06/2016, such transfers are tax-exempt.
