Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 9/23/2013

Argentina - Non-resident capital gains tax effective immediately 

September 23: An amendment to Argentina’s income tax law was today published in the official gazette that affects capital gains tax, as well as tax on dividends and profit distributions. The provisions of the new law are effective immediately.

Background

The tax reform bill was submitted in late August, and may have a potential impact on multinational corporations with Argentine subsidiaries. Read TaxNewsFlash-Americas: Argentina - Non-resident capital gains tax; limited time to act

Tax on capital gains

  • Capital gains derived by resident individuals from the alienation of unlisted shares, quotas, bonds or any other securities are subject to income tax at the rate of 15% on the net amount of the gains.
  • Capital gains derived by non-residents from the alienation of shares, quotas, bonds and any other securities are subject to income tax at the rate of 13.5% on the gross amount or at the rate of 15% on the net amount of the gains at the choice of the seller.

KPMG observation

It is worth emphasizing that the amendment states that, if the sale of shares is executed between non-residents, the payment of the above mentioned tax will have to be responsibility of the buyer.

Tax on dividends and profit distributions

Dividends, profit distributions by other entities, and remittances by permanent establishments are subject to a withholding tax at the rate of 10% on the gross amount.


The aforementioned withholding tax will be levied in addition to the existing Argentinean 35% "equalization" tax, which applies when the distribution is made from earnings that have not been previously subject to Argentinean corporate income tax (i.e. so that the distributed profits are in fact taxed in Argentina).


For more information, contact a KPMG tax professional in Argentina:


Rodolfo Canese

+54 11 4316 5869


Violeta Lagos

+54 11 4891 5619


Mariel E. Vazquez

+54 11 4316 5700




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