Argentina extends tax incentives on undeclared savings to spur construction
4:30 pm Monday, August 22nd, 2022
BUENOS AIRES (Reuters) – Argentina’s new Economy Minister Sergio Massa on Monday announced the extension of a plan offering tax incentives to Argentines who use undeclared savings to invest in construction projects, as part of a government effort to boost industry and employment.
The law extends one passed last year and sets tax rates of between 5% and 20% for newly declared funds invested in construction, with the rate depending on how soon the funds are declared.
“The first objective is to transform dormant savings, which are often not declared before the treasury, into investment and work,” Massa said at a ceremony in Buenos Aires, calling construction the “mother of industries.”
The plan also offers state benefits to workers who become formally employed in construction.
Massa, who was sworn in at the beginning of the month, said he hopes the plan will bring the number of Argentines employed in construction from 430,000 to 450,000 during its year-long mandate.
The government of President Alberto Fernandez is seeking to revive Latin America’s third-largest economy, which is suffering from growing poverty and an inflation rate that could end the year around 90%.
Argentina’s economy is slated to grow 3.4% in 2022, according to analysts consulted by the central bank, after recovering 10.3% in 2021.
The Federal Administration of Public Revenues (AFIP) and the ministry will provide details in the coming days on the conditions of the plan.
(Reporting by Eliana Raszewski; Editing by Mark Porter)
