There are multiple combinations of financial instruments, both Argentine and foreign sources. Some pay by dividends and others by sale. There are also those reached by the Personal Property Tax.
Determining how much taxes are levied on a financial investment can be complicated. You could say that For each instrument there is a particular treatment. Some are taxed on the dividends they generate, and others on the income they produce when sold.
There are very few cases where financial instruments are exempt. They are those that have to do with state bonds, shares and negotiable obligations of Argentine companies and traditional fixed-term deposits from banks.
The possible combinations are many, so here is a guide to understand the tax treatment of investments:
- Personal Property Tax: Investments in public securities, fixed-term deposits and savings accounts (both in national and foreign currency) are exempt. If the money is deposited in savings accounts as of December 31, that investment is not covered by the Personal Property Tax.
- Earnings: Everything that has to do with exchange differences that are generated are also exempt for human beings.
- Financial Income: The shares pay Financial Income tax on the purchase and sale. In general the rate is 15%. The Common Funds will be taxed according to the underlying asset and only at the time of redemption of the funds. If invested in public securities, it is considered exempt. If the FCI is made up of shares, that income would be taxed.
- Trusts: A trust is a contract and is taxed in the same way that a human person would be taxed as long as the trustor (contributor) and the beneficiary are the same person. And as a company, in the case in which the trustor and the beneficiary are different or, being equal, they choose to be taxed as a company. In this case, according to the balance sheet theory, all the profits obtained by the trust will be taxed and all expenses will be deductible.
Some examples of investments that don’t pay:
- Fixed-term deposits in common pesos, bonds in dollars of the national state, Argentine securities in pesos, negotiable obligations of Argentine companies both in pesos and dollars, Treasury bills also be in pesos or dollars. Common Investment Funds closed in pesos or dollars.
Some examples of instruments that pay:
- Argentine listed shares (CNV) with dividends taxed at 7%; listed Argentine shares (not traded on CNV), taxed dividend, 7% and pays 15% in case of obtaining income from its sale. In another case, CEDEAR dividends are taxed by scale but are exempt for their disposal.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
