The Government of Argentina prepares a project to regularize undeclared capital

The Argentine Government will send a bill to Congress so that financial assets, properties, holdings in foreign currency and other assets that are in the country or abroad are regularized before the treasury.

The measure establishes a simplified regime for holdings of local or foreign currency.

The project is called Externalization of Argentine savings to support compliance and cancellation of the debt with the International Monetary Fund, according to the draft accessed by Sputnik.

The Executive of Alberto Fernández plans to allocate 20% of the funds collected to pay the International Monetary Fund (IMF) part of the credit of US$44 billion that the multilateral organization granted to the previous administration between 2018 and 2019.

The norm will establish three dates to repatriate regularized assets, with a preferential rate for each case: March 31, June 30 and September 30.

The measure establishes a simplified regime for holdings of local or foreign currency that become official and whose amount does not exceed 35% of the average annual income of the last three fiscal periods, with a maximum of up to US$50,000.

The measure, which will be sent to Parliament before the end of the year, excludes taxpayers who paid the extraordinary solidarity contribution, intended for residents of the country who have declared more than ARG$200 million (US$1.86 million to the official exchange rate) to cover the economic expenses of the COVID-19 pandemic.

In addition to allocating 20% of the proceeds to cancel the debt with the IMF, the Government also plans to allocate the same percentage to subsidies for small and medium-sized companies and to Progresar scholarships, aimed at young people to finish their studies.

Another 40% of the proceeds will be directed to programs and projects of the Ministry of Energy dedicated to the exploration, development and construction of infrastructure for the transportation of natural gas.

With information from Sputnik