Argentina: Tax reform submitted to Congress
On 27 August 2013, the Argentine government submitted to Congress a Bill introducing amendments to the income tax system under which capital gains derived from the alienation of securities, dividends, profit distributions and remittances would be subject to income tax.
This is further to our Taxflash LT13068, dated 29 August 2013.
The main aspects of the Bill, which would become effective from the date of publication of the law in the Official Gazette, are as follows.
Capital gains
- Gains derived by resident individuals from the alienation of shares, bonds and any other securities (other than those listed on stock exchanges) would be subject to income tax at the rate of 15% on the net amount of the gains.
- Gains derived by non-residents (entities or individuals) from the alienation of shares, bonds and any other securities would be subject to income tax at the rate of 17.5% on the gross amount or at the rate of 35% on the net amount of the gains, at the choice of the seller.
Dividends, profit distributions and remittances
- Dividends, profit distributions by other entities and remittances by permanent establishments would be subject to a withholding tax at the rate of 10% on the gross amount.
At this stage, further conditions and requirements of the tax reform have not been released.
We continue to monitor Argentine government resolutions and will provide further information as it becomes available.
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