Argentina Imposes New Taxes on Dividends and Stock Sales
A new Argentine law that took effect earlier this month makes significant modifications to the country’s income tax regime. Under this legislation, which compensates for the reduction in tax collections resulting from the lower income tax on workers announced in late August, income tax will now be assessed in the following situations.
Transfer and sale of stocks. The proceeds of the sale, barter or disposition of stocks, securities and bonds are taxed at a 15% rate, regardless of the recipient’s country of residence, provided that said bonds, stocks or securities are not quoted in stock exchange markets. Limited liability corporations will be exempt from this tax.
Distribution of Dividends. All dividends distributed by corporations and LLCs to their shareholders on or after Sept. 23 will be taxed at a 10% rate. This assessment will be in addition to the 35% income tax on these entities.
Please contact Leandro Gonzalez or Samanta Madsen in the Buenos Aires office of Sandler & Travis Trade Advisory Services at +54 (11) 4872-8318 for assistance in understanding and mitigating the impact of this new legislation.