Taxand Argentina looks at the procedure to pay income tax related to the disposal of shares, quotes, equity participations, securities, bonds and others securities.
On 18 July 2017 the General Resolution 4094-E/2016 of the Federal Tax Authority was published in the Official Gazette, which provided the procedure to determine and pay the respective withholding of income tax applicable to the transfer, exchange, swap or disposal of shares, quotes, equity participations, securities, bonds and other securities (hereinafter Securities).
Please find below a summary of the most relevant aspects of the General Resolution 4094-E/2016:
- It establishes that if the purchaser of the Securities is an Argentine resident, (i) the clearing and settlement agent that participates in the transaction performed through markets or stock exchange authorised by the Argentine Security Exchange Commission or (ii) the purchaser of Securities not acquired through such markets or stock exchange, must act as withholding agents
- If the rate of 15% over the net income is applied, the seller will have to inform such decision to the withholding agent and provide specific documentation
- Certain procedures to pay the withholding income tax are regulated, which vary depending on (i) if the transactions are performed through stock exchange or markets authorised by the Argentine Security Exchange Commission or if the purchaser of the Securities is an Argentine resident, or (ii) if the purchaser of such Securities is a foreign resident
- A reporting regime is regulated by which the persons in charge of the registration before the corporate registry of the transfer of shares, quotes or equity participations contemplated in General Resolution 4094-E, will have to inform the Argentine Federal Tax Authority certain information related to the transaction
- This procedure will be applicable for transactions which cancellation have occurred or will occur since 23 September 2013, inclusive
- Regarding the transactions that would have being performed since 23 September 2013 but before 18 July 2017 the withholding tax would be considered pay in due time if it is made until 29 September 2017, not being applicable any interest or penalties