Personal Assets Tax on Shares: Set-Off Now Allowed

On July 25, 2025, the National Tax Directorate issued Opinion No. NO-2025-81182096-APN-SSIP#MEC, in response to a request from the Undersecretariat of Public Revenue, confirming that corporations acting as withholding agents for the Personal Assets Tax (“Impuesto sobre los Bienes Personales”) applicable to their shares may discharge such tax liability by offsetting it against their available tax credit balances.

Pursuant to Article 25.1 of the Personal Assets Tax Law No. 23,966, the tax on shares and equity interests of Argentine corporations governed by the General Corporations Law No. 19,550 must be paid by such corporations in their capacity as substitute obligors. The tax is levied at a rate of 0.5% on the proportional equity value as reflected in the company’s latest balance sheet as of December 31 of the relevant tax year.

The longstanding position of the tax authorities had been to deny the possibility for corporations obligated to remit the tax to offset such liability with their own tax credit balances. In other words, the tax authorities had consistently insisted that the substitute tax liability be settled exclusively through payment, notwithstanding the existence of available credit balances in favor of the obligated party.

Among the main grounds cited in support of allowing the set-off, the Opinion highlights: (i) the identity between creditor and debtor for purposes of the tax obligation; and (ii) that, under this special mechanism for extinguishing tax liabilities, the Federal Tax Authority’s role is limited to verifying the liquidity and enforceability of the credits being offset.

Although further clarification might be issued on the practical mechanisms to implement this offset regime, the Opinion resolves a long-standing controversy. Accordingly, its impact on outstanding unpaid tax returns, future filings, and pending litigation.