Tuesday, September 17, 2013
A bill was passed by Argentina's House of Representatives on September 04, 2013 that will change legislation concerning dividend withholding tax and the tax treatment of capital gains derived from the sale of shares, bonds and securities under certain circumstances.
Dividend and profit distributions made by Argentine companies, trusts and certain mutual funds would be taxed at a rate of 10 percent under the new legislation. Profit remittances made by permanent establishments and branches of nonresidents to resident individuals and individual and corporate nonresidents would also be subject to the tax. Dividend and profit distributions made to resident companies would continue to be exempt from tax.
A 15 percent tax would be imposed on capital gains from the sale of shares, bonds and other securities, abolishing the current exemption for such gains by nonresidents. However, gains from the sale of government bonds, corporate bonds with a public offering and trust securities and mutual funds would continue to enjoy tax exemption.
The bill is expected to be signed into law sometime in September and the new rules will come into effect once published in the Official Bulletin.