In Argentina, the obligation to register all rental contracts with the AFIP ( Tax Department ) has come into force: everything you need to know
The tax body will open a web application to make the declarations online. It will include properties for “traditional”, commercial, temporary rental and carparks.
What obligations will tenants and real estate owners have
Homeowners from all over the country will be obliged from this Monday to register their rental contracts of urban and rural real estate, temporary locations and fixed or mobile spaces or surfaces, with the Registry of Real Estate Rental Contracts (RELI) that the AFIP regulated as established now by the new rental law.
The AFIP established that contracts entered into as of July 1, 2020, and that remain in force, as well as those entered into during March 2021, will have an exceptional period for registration until April 15. The registration of the contract facilitates that the tenant can receive an invoice for the payment and can deduct from the Income Tax up to 40% of the sums paid as rent.
In addition, the owners who want to carry out future eviction lawsuits must have previously declared the rental contract.The AFIP established that the contracts signed as of July 1, 2020 and that they remain in force, as well as those concluded during March of 2021, they will enjoy an exceptional period for their registration until April 15.
The regime also provides that subjects who assume the character of tenants or tenants, may voluntarily inform a contract. Meanwhile, the resolution established sanctions for those who fail to comply and do not submit the required information within the registration regime for real estate rental contracts. “The tool will allow obtaining relevant information to verify compliance with the tax obligations of the parties involved in different operations,” said the AFIP in a statement.
The keys to the contract registry
During a meeting with representatives of the real estate sector, the head of the Department of the Services Sector, Hernan Cruells of the AFIP explained the main points of the Registry, as quoted by the news agency Telam . The official explained that landlords must register urban real estate leases, sublocations, leases on rural real estate, subleases, temporary real estate leases for tourism, rest or related purposes and the locations of fixed or mobile spaces or surfaces such as commercial premises, stands, fairs, etc .
Cruells clarified that among the excluded subjects are the public administration when in the contracts concluded the parties are exclusively the national or provincial State, the Government of CABA, the municipalities and their respective departments, centralized and decentralized entities.
Added that tenants are not required to register with RELI, but may voluntarily inform a contract if the landlord had not done so.
The tenant, he explained, “has no obligation to RELI, they simply have the facilities of the system to report certain situations, to find out, to know in which contracts in that they appear as a tenant and can accept or not that contract, and also if he has any type of difference can be reported within the service itself ”.
For its part, the deputy director of Taxpayer Services of the AFIP, Patricia Vaca Narvaja , said that “in the course of the implementation of this resolution and this registry we will see if it is going well, what are the problems or complications and we will be solving them jointly”. The RELI contemplates the possibility that intermediaries (brokers, real estate agents and notaries) register a contract on behalf of their clients.
To register the contracts (or any modification) you must access the AFIP website with tax code, at the service “Registry of Real Estate Locations – RELI – Taxpayer” The landlord, with a level 3 security tax code, must complete a series of minimum data regarding the contract and attach the contract signed in JPG or PDF format.
Once this operation is carried out, there is an acknowledgment of receipt and a verification code of the contract registration. The RELI service will be available from this Monday to declare, consult, modify, renew or cancel rental contracts located in the country.
Contract registrations and modifications that this contract may undergo (early terminations or terminations) must be registered in the system. Regarding the period established to inform the conclusion of contracts and/or their modifications, it was indicated that it is 15 consecutive days from its celebration.
In relation to the sanctions for non-registration, Cruells indicated that “it is a breach of formal duties and they are subject to the fines provided for in the tax procedure law.” In addition, he warned, there will be “a loss due to the initiation of a lawsuit for the collection of pesos, since the court is going to demand that registration of the contract before AFIP.”