The AFIP has recently announced an amendment to Law 27,737, which allows tenants to lower their taxable income by up to 10% of the total rent they paid for their primary residence in 2023 and subsequent years. This deduction was introduced under Article 11 of Law 27,737, approved during the previous administration, and is intended to encourage tenants and landlords to register their rental contracts with the AFIP.
The deduction is available to both tenants and landlords, in addition to other existing ones as explained by tax expert Marcelo Rodríguez. For example, if a tenant pays $350,000 in monthly rent, they can deduct a total of $420,000 annually. This deduction can result in tax savings ranging from $63,000 to $147,000 for the year depending on the applicable tax rate. The deduction has no limit, meaning those with higher rents stand to benefit more.
It is important to note that employees who are eligible for the deduction have until July 15, 2024 to report it so that it can be considered in their annual tax settlement for 2023. After this deadline, they will no longer be eligible as clarified by tax expert Sebastián Domínguez. Additionally, retired individuals and self-employed workers can also benefit from this deduction.
To qualify for this deduction, the tenant must not own any other properties and the rental contract must be registered with the AFIP. Further insight into the deduction and its requirements can be provided by tax experts Fernando López Chiesa and Florencia Iaciancio.
