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October 31 deadline to deposit previously undeclared cash in Argentinian banks

Tuesday, 4 October, 2016

Argentina's tax authority (AFIP) has reminded those with undeclared cash (either Argentinian or foreign) of the final deadline of October 31 to declare it.

AFIP highlights the three steps required to do so: 1) creating a special bank account in any bank; 2) registering the cash to be declared; and 3) depositing the cash at the bank.

The declared monies can then be used immediately to purchase registerable goods (such as a building or vehicles, for example) but if the taxpayer decides not to use it, it must stay in the account for at least six months.

As part of the drive to encourage the declaration of previously undisclosed assets (of any type), AFIP has created a system to enable taxpayers to calculate the tax due on different types of undeclared assets, including cash – the Asset Declaration Simulator (Sp: Simulador de Declaración Patrimonial).

The applicable tax can be paid until December 31 at a rate of 10 percent or at a higher rate of 15 percent until March 31, 2017.

According to iProfesional, the financial system has committed to increasing communication and helping those clients who already have bank accounts with their institutions to declare those assets but they will not help "unknown" persons or companies with undeclared assets.