Argentina alters taxes on capital gains and dividends (Sunnyvale, CA) - Argentina has recently amended income tax provisions, affecting taxes on capital gains as well as dividends and profit distributions, says Nair & Co.’s International Tax Services Team. Following are the key highlights:
On both dividends and profit distributions a new tax will be levied at a rate of 10%. This is in addition to the "equalization" tax of 35%, which is applied in Argentina if the distribution of dividends and profits is from the earning on which corporate income tax has not been levied in the country. Income tax at the rate of 15% must be levied on the net amount of the capital gains by resident individuals from the sale of unlisted shares, bonds, quotas and any other securities. However, in case of non-residents making capital gains from the alienation of shares, quotas, bonds and any other securities, income tax should be levied at rate of either 13.5% on the gross amount or 15% on the net amount of the gains. The non resident seller can choose between the options.
The above can increase tax bills for foreign investors in Argentina. Multinationals having operations in Argentina or those who are planning to establish presence in the country must carefully analyse these amendments to assess possible impacts. For more information about international taxation laws or our International Expansion Services team please contact us. Subscribe to regular global tax compliance alerts from Nair & Co. International Business Guide (IBG) is our online platform for companies wishing to optimize their multinational operations and would like to have specific business information for doing business in a particular country - Click Here. 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. provides you with your one touch outsourced finance, HR, legal and global tax compliance department for your international operations. If you are expanding abroad for the first time or increasing your global footprint, our turnkey solutions help you do so with minimal risk, stress and cost. We support 1000+ client operations in over 56 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at www.nair-co.com Read more on: International best practices in business
Published on Sep 27, 2013
Published on Sep 27, 2013
Argentina has recently amended income tax provisions, affecting taxes on capital gains as well as dividends and profit distributions, says N...