Taxation of Financial Income for Argentine individuals

Possibility of computing interests against acquisition cost of bonds or negotiable obligations

 

In the event of public bonds or negotiable obligations, the taxpayer may choose to attribute the income arising from fiscal period 2019 to the acquisition cost of the security that generated such income.

 

Exemptions for individuals

 

LSSPR abrogates section 95 of the ITL for fiscal periods beginning on January 1^st, 2020. Such section subject to Income Tax interest arising from:

 

a) Public securities, negotiable obligations, debt securities, shares of mutual funds not included in subsection c) below, certificates of participation of financial trusts and any other right over trusts and similar contracts, as well as any other kind of title or bond and other values, in all cases in Argentine currency without adjustment clause: 5%.

 

b) Public securities, negotiable obligations, debt securities, shares of mutual funds not included in subparagraph c) below, digital currencies, as well as any other type of bond or title and other values, in all cases in Argentine currency with a clause of adjustment or in foreign currency: 15%.

 

LSSPR establishes that interest arising from is exempted from Income Tax for Argentine individuals:

 

The interests arising from account deposits, special savings accounts, fixed-term deposits in national currency and third party deposits or other forms of fundraising public funds, made in institutions subjected to the legal regime of financial institutions (Law No. 21,526), are exempt from the Income Tax, according to the new subsection h) of Section 26 of the Income Tax. In addition, it is clarified that the exemption is not applicable to interest from deposits with an adjustment clause.

 

For the purposes of such exemption, subsection 3 and 4 of section 36 bis of Negotiable Obligations Law, subsection b) of section 25 of Common Investment Funds Law and subsection b) of section 83 of Law 24.441 are in force. Such regulations grants exemptions for interest and profits arising from those types of financial instruments.

 

Also, LSSPR exempts from Income Tax, Argentine source income arising from the sale, exchange and disposition of public bonds and negotiable obligations among other instruments if they are listed on stock exchanges or markets authorized by the National Argentine Securities Exchange Commission. The same treatment shall apply to non-Argentine residents that do not reside in non-cooperative jurisdictions or the funds invested do not come from non-cooperative jurisdictions.