AFIP has adjusted the tax base from which internal taxes on km 0 vehicles are paid. This update seeks to balance car values against quarterly inflation, so that lower value vehicles are not affected by the tax.
Sebastian M Dominguezof SDC Asesores Tributarios, he explained that the adjustment is essential because high inflation means that an initially exempt vehicle can become taxable if its price rises but the non-taxable minimum does not change.
The new scale of the “luxury” tax will begin to be applied from March., but since the adjustment is quarterly, there will be another adjustment in May. The readjustment of the tax provides for two price lists. Internal tax rates on cars range from 20% to 35%.
The adjustment of the tax base will be 19.16%, which is the increase in wholesale vehicle prices between October and December.
The tax base for Section I, which has a 20% rate, will increase from the current $4,116,520 at the factory to $4,905,000. Added to this value are VAT (21%) and the dealer’s margin (15%).
Thus, the models that have to pay the fee, which until now were the ones costing more than $5.8 million, will now be the ones costing more than $7 million.
Domínguez explained that since the internal tax applies to taxes, the effective rate of the first tranche is 25% and in the case of the second tranche the effective rate is 53.80%.
The second tranche of the tax – with a rate of 35% – will go from a base of 7.6 million dollars to 9 million dollars and a value to the public of 13 million dollars.
From the automakers, they said that this increase “is not a major change, because it is a quarterly adjustment that has been done for a long time and regularly.” Major brands such as Toyota or Volkswagen will only be affected in the SUV range that comes from Japan or Brazil, because the utility segment is not affected by the tax.
Source: Clarin
