Income tax return: Balances held in checking and savings accounts

Individuals who for the taxable year 2018 are obliged to file the income tax return and supplementary return must report in this return the net worth value of the different assets and liabilities under their charge, whether they are held in the country or abroad.

The expression “net worth value” refers to the amount for which the assets and liabilities of individuals or unliquidated successions, whether or not they are obliged to keep accounting records, must be fiscally reported in the income tax return, emphasizing that fiscally only the assets and rights that can be appreciated in money must be reported.

According to Article 267 of the Tax Statute -ET-, as a general rule, the net worth value of the assets or rights appreciable in money will be determined by their fiscal cost.

Equity value of deposits in checking and savings accounts

Among the assets that both individuals obliged and not obliged to keep accounting records must report in the income tax return are the balances held in checking and savings accounts. Article 268 of the ET establishes that individuals and unliquidated successions must declare as tax value the balance appearing in the statement as of December 31 of the respective taxable year.

The foregoing, regardless of the fact that for the person obliged to keep accounting there are valid reconciling items between the balance in books and the balance in the statement (for example, unidentified bank deposits, or checks drawn and not cashed).

Source: Actualize