Argentina: Withholding tax changes introduced by Law 27.541
Clearstream Banking1 informs customers that the "Social Solidarity and Productive Reactivation Law", (Law 27.541 -Ley de Solidaridad Social y Reactivación Productiva en el marco de la Emergencia Pública) published in the Official Bulletin of the Republic of Argentina, became effective on 23 December 2019.
This Law aims to generate a recovery in the Argentinian economy, the changes introduced include a change to the applicable withholding tax rates.
Effective
1 January 2020
the following withholding tax rates apply
Equities – Personal asset tax
- The rate is increased from 0.25% to 0.50%.
Equities - Withholding tax on dividends
- For profits accrued during 2019 and 2020 fiscal years: 7%
- For profits accrued from 2021 onward: 13%
Unlisted corporate debt securities - Withholding tax on interest payments
- The withholding tax rate of 15.05% applies if the issuer or the recipient of the funds is a banking institution (otherwise the rate is 35%). This change has been effective since 1 January 2020.
The interest payments on government, provincial and municipal bonds and listed corporate bonds remain exempt from withholding and capital gains tax.
Impact on customers
Clearstream Banking offer no tax service on Argentinian dividend and interest distributions.
The tax will be levied at source by the issuers with no possibility of relief at source nor refund through Clearstream Banking.
Customers are recommended to seek the advice of their own tax advisors for further details on this taxation.
Further information
For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.