Argentina: Introduction of Capital Gains Tax II

Following Taxflash T18015, Clearstream Banking provides customers with clarification on the impacts of the new Resolution 4227/2018 (in Spanish only) that came into effect on 25 April 2018 for securities held in Clearstream Banking.

Clearstream Banking is not subject to taxation in the Argentine market and therefore no capital gains taxes will be directly withheld on transactions effected in Clearstream Banking.

Please note that unlisted securities, unlisted corporate bonds and Lebacs are not eligible in Clearstream Banking and are subject to capital gains tax.

Type of securities eligible in Clearstream Banking	Capital gains tax applicable Yes/No	Conditions
Listed equities	No	Must be listed and traded on an authorised market; or The initial public offer/exchange/ other corporate actions are authorised by the regulator.
Government bonds, notes & bills	No	n/a
Listed corporate bonds	No	n/a
Cash dividends (listed & unlisted equities)	Yes	13% for distributions on profits accrued for fiscal years starting from 1 January 2020 and onward, and withheld at source.
For stock dividends, exchanges and any other corporate action events where stock is received	No	n/a
Investment funds^a	No	Argentine investors must include in their annual tax declaration.

Withholding agent responsibility

Settlement transactions in equities where the final beneficiary is not a member of a cooperating country

Transactions with a local counterparty:

When the seller is an Argentine beneficiary, the local agent is subject to act as the withholding agent and collect the relevant capital gains tax.
When the seller is a non-Argentine beneficiary, the final beneficiary is responsible for paying the capital gains tax:
- If the final beneficiary has a legal representative in Argentina, the representative must act as the withholding agent and pay the tax according to the provisions of bullet a of Art. 9 in the
  General Resolution Nº 4227.
- If the final beneficiary does not have a legal representative in Argentina, they must pay the tax directly according to the provisions of bullet b from article 9 of General Resolution Nº 4227.

Transactions between two Clearstream Banking customers or with a Euroclear Bank participant via the Bridge:

The delivering party, which is the final beneficiary, is responsible for paying the capital gains tax:

If the final beneficiary has a legal representative in Argentina, the representative must act as the withholding agent and pay the tax according to the provisions of bullet a of Art. 9 in the General Resolution Nº 4227.
If the final beneficiary does not have a legal representative in Argentina, they must pay the tax directly according to the provisions of bullet b from article 9 of General Resolution Nº 4227.

Impact on customers

Customers must take the necessary actions to comply with the changes introduced by the Resolution that came into effect 25 April 2018. Clearstream Banking does not assist customers in this regard. Please contact your tax advisor for further information.

This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A. its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.