BUENOS AIRES – President Mauricio Macri announced on Friday that he will send to Congress a tax amnesty bill intended to encourage people to repatriate money stashed abroad.
The proceeds of the measure will be used to pay pension arrears to some 2.5 million retirees who have been shortchanged for the last 20 years and to finance the creation of a universal minimum pension for people 65 and older, he said.
Argentines have taken billions of dollars abroad “because they didn’t trust the state,” Macri said.
The proposed legislation would offer three options for Argentines with undeclared foreign accounts: pay a one-time special tax; buy bonds; or make long-term investments in Argentina.
Sums less than 305,000 pesos ($21,500) will not be subject to any tax, while amounts of up to 800,000 pesos ($56,000) will face a 5 percent levy.
For everything above the level, the tax will be assessed at 10 percent, rising to 15 percent after Jan. 1, 2017.
The top marginal rate of income tax in Argentina is 35 percent.