Rental Law two opinions were issued to reform the norm

After the parliamentary agreement reached by the different blocks at the beginning of April to debate the reform of the Rent Law, for which they had set a term of 30 working days that was not fulfilled, the General Legislation and Budget and Treasury commissions of the Chamber of Deputies advanced with two opinions to modify the norm, one by a majority of the Front of All and another by a minority of Together for Change and the federal blocs.

However, an adverse result for the ruling party appears in the room, since the opposition would outnumber it to impose its text and they could even request a session to debate the issue in the first days of July. For this, it remains to define the position that the libertarian deputies will have, who asked for the repeal of the law.

According to the accompaniments in commission, the minority opinion would have 116 legislators from Together for Change, 8 from the Federal interblock and 4 from the United Provinces interblock.

After the committee sessions, which were attended by more than a hundred exhibitors from all sectors, the ruling party and the opposition were unable to reach a consensus. Although in both opinions tax benefits were included to promote the offer of properties.

majority ruling

The opinion of the Front of All maintains the duration of the contracts at three years, as well as the index for updating the rents based on a formula that combines the Consumer Price Index (CPI) and the Average Taxable Remuneration of the Stable Workers (RIPTE). And it grants more facilities for the tenants in the presentation of guarantees.

It also includes tax incentives such as: a reform in the monotributo regime to benefit monotributistas that have more than three exploitation units; incorporates to the regime of the Construction Incentive Law the properties that for 12 years are intended for rent and “provided that said lease contracts are registered”; and exempts from the tax on Personal Assets those properties whose value is equal to or less than 30 million pesoswhich is the non-taxable minimum for that category.

minority ruling

Meanwhile, the opinion of the opposition returns to two years the minimum legal term of the contracts. The rental price must “be set as a single value and for monthly periods, on which adjustments may be made with the frequency agreed by the parties, for intervals of between 3 and 12 months.”

In the adjustments, the parties “must agree on the mechanism for updating the rental price at the beginning of the rental relationship, being able to apply for such purposes the Consumer Price Index (IPC), the Wholesale Price Index (IPM) and/or the Salary Index (IS)” prepared by INDEC, “or a combination of said indices, as agreed by the parties”.

In terms of tax benefits, they are similar to those of the ruling party, A reform of the monotax regime is contemplated so that those who have three exploitation units, “in the case of real estate rental activity, through duly registered contracts” are considered as “a single exploitation unit regardless of the number of properties affected to the same”.

In this way, one of the opinions intends to keep the law fairly as it is, but including small modifications, and the other tries to return to the previous regulation, where all the power is on the side of the landlord or where they have to “agree”, which which leaves the tenant in a subordinate relationship with the landlord.

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By Geeke