RSM Global

Argentina: Taxation of gains from the transfer of shares and dividends

Significant amendments have been introduced to Income Tax regulations, extending the tax scope to include certain financial gains, that were exempt from income tax and establishing an additional tax rate on dividend distributions and companies profits.

Law 26.893 provides that as from 23 September 2013:

  • Gains from the sales of shares, capital quotas or equity holdings or any other unlisted securities by natural persons residing in the country or foreign subjects will be taxed. This means that regardless of whether the seller is a resident of Argentina or not, a natural or a legal person, gains from the sale or transfer of Argentine companies shares (unlisted) will be taxed in the country.
  • In this case, individuals residing in Argentina will pay 15% on such gains, whereas non-resident subjects may opt to pay 13.5% or apply a 15% rate on the net income.
  • If the buyer of the shares is a resident of Argentina, the buyer will have the obligation to pay the tax. If both parties, buyer and seller,are foreign subjects, the buyer will have the obligation to pay the tax.
  • An additional 10% tax will be applicable to dividend distribution and other profits.
  • In general, in Treaties to Avoid Double Taxation, Argentina has reserved the right to tax dividends or profits obtained within its territory. Maximum withholding rates, in general, are 10% when the stake is greater than 25% and 15% in all other cases.

 

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