The Government headed by Jorge Macri in the city of Buenos Aires sent the Budget, Tax Law and Tax Code package to the Buenos Aires legislature, which would be discussed in December. This project, among many other aspects, raises changes in the way patent payments are calculated of the cars located in this district from 2025.
From the Buenos Aires executive, they justify these modifications to make the jumps between the different rates established until now more equitable: currently there are 5 rates ranging from 1.6% to 5%.
That means that a car that is worth a peso more than another suddenly rises to the top step and pays much more. To seek to eliminate these inequalities, a mixed scheme, with a fixed amount plus an aliquot on the rest.
To estimate the patents of each vehicle, the October valuation prepared by the Association of Car Dealers of the Argentine Republic (ACARA) will continue to be taken, and an aliquot will be applied to that value. This calculation will determine the annual amount to be paid, which will then be divided into six bimonthly installments.
At the same time, the Buenos Aires Government also proposes modifications in the benefits that electric or hybrid cars had until now settled in the city, who were exempt from paying taxes.
How much will the patent cost in 2025?
The new scheme for calculating patents in the city of Buenos Aires will maintain different rates depending on the valuation but will add up to a fixed amount. This value was calculated by applying the current system aliquot to the maximum of each new scale.
Thus, if the maximum of the scale is $4,909,680, the 1.6% rate is applied and the amount is defined at $78,555. This minimum is what defines what the taxpayer must pay.
The project names two specific examples of what it would be like from the new mixed scheme:
- And Fiat Grand Siena 2015valued at $5,984,400, falls into the second category. Therefore, you must pay a fixed $78,555 plus 4% of the surplus (in this case, $42,988). That is, the fee will be $121,543 annually, to be divided into six installments.
- And Renault Duster 4×4, from 2024has a tax valuation of $38,402,700. Therefore, it enters the penultimate category, the 7th. The fixed amount is $1,562,810 and the rate is 7% ($368,025). In other words, per year you will pay $1,930,835 divided into six bimonthly installments.
The project also stipulates rewards for good payers. Those who pay the entire year in advance will save 10%, as will those who pay installment by installment in term. And those who join the automatic debit will have a 50% discount on the last bimonthly installment.
Fewer benefits for hybrids and electrics
One of the compelling arguments that a Buenos Aires citizen had for buying a hybrid or electric vehicle was that this type of vehicle They were exempt from paying patentas a measure to encourage the use of this type of technology. That is something that will change if this new project is approved.
In this idea of proposing “tax equity”, the Government of the City of Buenos Aires proposes eliminating this exemption starting in 2025. New vehicles will maintain the benefit and only during the first fiscal year. The Buenos Aires Executive considers that these models are high-end and that the incentive for electromobility should be given in another way and not with tax reductions.
The changes would also bring modifications for pickups, which currently pay a reduced rate. Starting next year, it is proposed that they do so as indicated in the new valuation payment scheme.
