Changes in Exemption for Debits and Credits on Mutual Investment Funds and Financial Trusts’ Bank Accounts

Scope of the exemption before the amendment introduced by Decree No. 117/2019

Scope of the exemption according to Decree No. 117/2019

The scope of the exemption is maintained for Open-end Mutual  Investment Funds

Accounts used exclusively in the development of their specific activity by Mutual Investment Funds included in the first paragraph of Section 1 of Law No. 24,083 as amended (Open-end Mutual Investment Funds).

Accounts used exclusively in the development of their specific activity by Mutual Investment Funds included in the first paragraph of Section 1 of Law No. 24,083 as amended (Open-end Mutual Investment Funds).

A new exemption is incorporated for Closed Mutual Investment Funds investing in financing of Micro, Small and Medium Sized Enterprises.

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Accounts used exclusively in the development of their specific activity by Mutual Investment Funds included in the second paragraph of Section 1 of Law No. 24,083 as amended (Closed Mutual Investment Funds), insofar its investment is focused in financing of Micro, Small and Medium Sized Enterprises.

The requirements to apply to the exemption in the case of Financial Trusts and Closed Mutual Investment Funds with public offer are mitigated.

Accounts used exclusively in the development of their specific activity by Mutual Investment Funds included in the second paragraph of Section 1 of Law No. 24,083 as amended and Financial Trusts included in Sections 19 and 20 of Law No. 24441, as long as they meet all the requirements set forth in Section 70.2 of the Regulatory Decree of the Income Tax Law:

a) They are established for the sole purpose of securitizing homogeneous assets consisting of public or private securities or credit rights arising from financing operations evidenced in public or private instruments, verified as such in their classification and value by the control bodies, provided that the constitution of such trusts and the public offering of certificates of participation and titles representative of debt were carried out in accordance with the rules of the Argentine Securities Commission.

b) The homogeneous assets originally trustee are not replaced by others after their realization or cancellation, except for transitory financial placements made by the trustee with the proceeds of such realization or cancellation in order to manage the amounts to be distributed or apply to the payment of the obligations of the respective trust, or in the cases of replacement of an asset by another by delay or breach.

c) That the term of the trust, only in the case of representative credit instruments, is related to the term of the definitive cancellation of the trust assets.

d) That the total gross benefit of the trust is integrated only with the revenue generated by the trust assets or by those that constitute them; and with the revenue derived from their realization and from the transitory financial investments referred to in point (b), admitting that a proportion not higher than 10% of such revenue comes from other transactions carried out to maintain the value of said assets.

Accounts used exclusively in the development of their specific activity by Mutual Investment Funds included in the second paragraph of Section 1 of Law No. 24,083 as amended and Financial Trusts incorporated in Argentina in accordance with the provisions of the Argentine Civil and Commercial Code, as long as:

a) their investment portfolios or trust assets are constituted with homogeneous assets consisting of public or private securities or credit rights arising from financing operations evidenced in public or private instruments, verified as such in their classification and value by the control bodies.

b) all their quotas or fiduciary securities have public offering, in accordance with applicable regulations.