D (for dollar, that is) day is finally upon us. Deposits of any undeclared cash you may have stuffed in a mattress or buried in the garden need to see the light of day. You can deposit the cash in banks until 2:30 PM today. After extending the deadline twice, the national tax collecting agency (AFIP) finally settled on today as the deadline for opening “special accounts” to deposit assets under the tax amnesty plan being rolled out by Macri’s administration.
Years of economic highs and lows has caused many Argentines to trust putting their savings into cash, often in foreign currencies — with a great deal of money going undeclared. The amnesty or the chance to “whitewash” undeclared money sets into motion a 10 percent tax penalty on undeclared assets without inquiry into where the money has come from.
How much is expected to get introduced into the formal economy? Around US $9 billion, not exactly a small sum. However this is still a far cry from the government’s estimation of US $20 billion. On Thursday figures reached around US $6.5 billion with a confirmation that US $2.5 billion would be deposited between Friday and today.
New Years Eve (31st December) is the next deadline. This will account for undeclared assets or real estate held abroad, with the same 10 percent penalty slapped on. Failing to file by then will result in a five percent increase in the tax. These cases must be filed by the March 31st deadline in 2017.
If all goes to plan, the Argentine government could see a much needed influx of funds, as it is estimated that the Argentine public have around US $400 billion stashed outside the country. However from July until last month, only around US $150 million has entered the country according to Clarín.
What do you need to do?
“You need to have an AFIP receipt as proof and the receipt of payment for the ‘Volante Electrónico de Pago‘ (VEP): both should be signed by the person making the deposit” said AFIP in a press release.