Stock sale and the Income Tax Law

On July 3, 2003, the Solicitor General issued Opinion No 351. The opinion analyzes successive and recent amendments to the Income Tax Law, regarding the treatment of the results arising from the transfer of stock and other securities by Argentine-resident individuals.

Although the opinion is not absolutely clear, it seems to hold that the income derived from the transfer of stock and other securities by Argentine-resident individuals is not subject to Income Tax, starting in the taxable year 2002.

The Solicitor General is the head of an agency that depends on the Federal Executive Branch, and that is in charge of providing legal advice to the other agencies of the public administration and to represent the State in lawsuits. The conclusions of the Solicitor General’s opinions must be taken into account by the agencies of the public administration when issuing administrative decisions that could affect individual rights.