The registration of the contract makes it easier for the tenant to receive an invoice for the payment and to deduct from the Income Tax
As of March 1, the owners of rented garages They must also register the contracts in the Registry of Real Estate Locations, after the regulation of this mechanism that is foreseen in the new Rent Law, in what is anticipated will be a tool to avoid the informality of relations with tenants.
Now experts warn that, if renting a garage is already a modest, low-profit business, now the gain would happen to be null.
In General Resolution 4933 of the Federal Administration of Public Revenues (AFIP), the registration provided for by the Rent Law sanctioned last year was regulated.
Likewise, it was established that contracts entered into as of July 1, 2020 and that remain in force, as well as those entered into during March 2021, will have an exceptional period for registration until April 15.
Measure It reaches the locations of urban real estate, leases on rural real estate, temporary real estate locations for tourism, rest or similar purposes. Also the spaces or fixed or mobile surfaces delimited within real estate such as commercial premises and / or stands.
Garages: accounts do not close
Owners who have rented properties must pay a tax rate of 1.5% of Gross Income on the rental value in the City of Buenos Aires and 3.5% in the province of Buenos Aires.
According to the consensus of experts in the sector, the annual rent of a garage, on average, excluding taxes, today is just 1.5%. A key fact: individual garages, in the event that the rental price exceeds 1,500 pesos, must pay VAT.
What does this imply? That when the contract is registered and face taxes, the owner would keep a zero profitability.
To this is added that, since there are no more “word contracts”, the owners must hire lawyers who write the documents. This will generate an extra expense and also a tax cost that, experts agree, would erode any profit.
The consequence, then, would be an increase in values. The problem is that, in certain areas, such as Microcentro, there are a large number of guaracoches spaces that are idle due to the implementation of the home office.
1) Who is required to register?
Who They are obliged to register are the landlords, lessors, sublocators and sublords. If there are intermediaries (brokers, real estate agents, notaries) who represent them, they may register a contract on behalf of their clients but it is not an obligation. And tenants will be able to inform the contract voluntarily.
Who they are not required so far they are the entities or agencies of the national State, the provinces, the Government of the Autonomous City of Buenos Aires and the municipalities that act as owners of the property.
2) Until when can you register?
While this measure will take effect as of March 1 and the contracts reached are those that were carried out as of July 1, 2020, an exceptional period for registration was established until April 15 of this year for those contracts that were made between July 2020 and March 2021.
3) How is the procedure done?
It can be done digitally through the AFIP page by entering with the Fiscal key in the section on “Registry of Real Estate Locations-RELI-TAXPAYER” and must be done within 15 days after signing the contract.
4) What information must be submitted?
In order to register the contract, the data related to your role as landlord, the identification of the property and the rest of the parties in the contract must be submitted. Information on your location (postal code, provincial jurisdiction, town or CABA, street, number, floor, department, functional unit), the start and end date of the agreement, the amount paid and frequency of payment, and supporting evidence of payments made. In addition, the signed contract must be attached in a “.pdf” or “.jpg” file.
The owner must present his Unique Tax Identification Code (CUIT), Unique Labor Identification Code (CUIL) or Identification Code (CDI) of each of the holders and percentage of ownership.
The regulations establish sanctions for those who fail to comply and do not submit the required information
5) What contracts have been reached?
– Locations of urban real estate.
– Leases on rural real estate.
– Temporary locations of real estate -urban or rural- for tourist, rest or similar purposes.
– Locations of fixed or mobile spaces or surfaces -exclusive or not- delimited within real estate such as commercial premises and / or “stands” in supermarkets, hypermarkets, shopping malls, centers, promenades or shopping galleries, etc.
6) What happens if the registration is not done?
The normative establishes sanctions for those who violate and they do not submit the information required within the real estate rental contract registration regime. The scope of the sanctions has not yet been reported.
7) What is the purpose of this measure?
As stated in the AFIP, it will allow obtaining relevant information to verify compliance with the tax obligations of the parties involved in different operations.