News about the financing bill (Tax reform)

Wealth Tax Proposal

On October 31, the government announced the financing law with which it expects to raise about 14 billion pesos. Among the proposed changes is a new wealth tax with the following characteristics:

• The tax would have a duration of 2 years, 2019 and 2020.
• It seeks to tax taxpayers of income tax (natural person) with a net equity exceeding $ 3,000 million. Foreign persons and entities would be taxed by their assets owned in the country.
• The taxable base would be the net equity as of January 1, 2019 and by 2020 it could increase or decrease up to 25 per cent of the inflation of the previous year.

The Government proposes the application of the following differential rate: