Argentina Clarifies Income Tax Provisions


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Argentina has, during the recent past, published amendments to income tax provisions. Certain clarifications have been recently issued relating to these amendments

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Argentina Clarifies Income Tax Provisions

  1. 1. Argentina Clarifies Income Tax Provisions (Bristol, UK) - Argentina has, during the recent past, published amendments to income tax provisions. Certain clarifications have been recently issued relating to these amendments. These clarifications concern levy of tax on transactions related to securities, specifically share transfers and dividend distribution, reports Nair & Co.’sInternational Tax Services Team. Following are highlights of a few amendments that have come into force since September 2013:  Introduction of 15% income tax on the net gains from sale, exchange, barter of securities including but not limited to shares, titles and bonds.  A tax rate of 13.5% on the gross sales price of the securities transferred by foreign beneficiaries.  A 10% withholding tax on dividends distributed by local entities to both residents and foreign shareholders.  Equalization tax of 35% shall also be imposed in addition to withholding tax in certain cases. Features of the recently published clarifications related to the above amendments include:  Certain exemptions from the above 15% or 13.5% tax on the sale, exchange or barter of securities.  Clarification on the method of calculating the gains from securities, in certain circumstances.  Concerning the calculation of the 10% dividend withholding tax, the equalization tax should be applied first and then the resulting amount of the distribution would be subject to the withholding tax.  Clarification on the applicability of the 10% dividend withholding tax:  If dividends are distributed in kind.  In certain complex scenarios like capital redemption.
  2. 2. These clarifications are applicable for the above transactions taking place on or after 23 September 2013. Nair & Co.’s international tax team advises companies operating in Argentina to carefully analyse these amendments to assess possible impact. For more information about international taxation laws or to learn more about ourInternational Expansion Services team please contact us. Subscribe to regular global tax compliance alerts from Nair & Co. Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts. About Nair & Co. Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-point-of-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more at Media Contacts: For media enquiries or to learn to more about Nair & Co., please email us at or call Yvonne Smith at +1.408.501.8867