Rental law: what are the main points of the project agreed by the opposition

The opposition to the Deputies seeks to obtain a new political victory in Congress after the approval of the single ballot and is now putting pressure on reform the rental law, a proposal opposed by the ruling party that tries to keep the rule voted three years ago. In the last few hours Together for the change and the Federal Interlock agreed on a project which partly returns to the previous rule, with some tax benefits for the owners.

In a plenary session of the General Legislation and Budget Committees, led respectively by Cecilia Moreau and Carlos Heller, the deputies of Together for Change agreed a minority opinion with representatives of the federal Interblock and the United Provinces who hope to bring the local.

Below is a score with the 5 most important points of the project:

• Contractual period

The opposition project promotes two-year contracts, update between three and 12 months, which is defined by the two parties without limit. CurrentlyThey have a minimum duration of three years.

• The value of the rent is

In leases residential properties, the rent must be fixed in a single value and for monthly periods, on which adjustments can be made with the frequency agreed by the parties, at intervals between three and twelve months.

• Update of rental value

For the adjustments, the parties must agree on the mechanism for updating the rental price. at the beginning of the rental relationship.

The initiative provides for it as a reference for rent increases the Consumer price index (CPI), the Wholesale Price Index (IPM) and / or the Wage Index (IS) prepared by the National Statistical and Census Institute (INDEC) or a combination of these indices, as agreed by the parties.

• tax incentives

Likewise, the proposal agreed by the opposition includes tax incentives to increase the rental offer. For this it is proposed exemption from paying personal property tax for those who declare leases with a limit of $ 30 million.

It also promotes a reform of the monotax regime so that people with up to three rental properties do not have to switch to the general regime and a modification so that the payment of rents is not met by the tax on checks.

• Who declares the leases

Real estate leases must be filed by the landlord before the nation’s Federal Revenue Administration (AFIP).

vote by vote

Although the ruling party managed to reunite 40 signatures to impose its majority opinion, the opposition collected 39 adhesions thanks to the representatives of Together for Change, and of the Federal and United Provinces interlocks.

It is clear that from the opposition will try to exert pressure for the proposal to be discussed in the next few days in a specific session, since in the classroom it is assumed that it will have the necessary votes to overturn the initiative promoted by the Frente de Todos, which maintains the duration of three years in the contracts.

When it comes to updating contracts, the ruling party also supports the formula that combines monthly changes in the CPI index and the taxable average wage of permanent workers (RIPTE), which must be prepared and published monthly by the Central Bank.

What the ruling party adds is that it makes it easier for tenants to present guarantees.

The current rental law entered in force for two years. Shortly after the launch of the new initiative, various sectors have begun to ask for changes. At the end of last year, the same government recognized the need to change it and has since been looking for a project that ends up prevailing.

GRB / SN