Changes in income and personal property taxes

August 12, 2021

Yanina Beade provides her comments on Law No. 27,638, providing for tax incentives to promote savings in pesos. Regarding the same, it is noted that the proposal of the legislators to alleviate the tax burden on some financial assets, applies to the current fiscal year but cannot be applied to the Affidavits for the 2020 period that begins to expire on August 10 and the balance to be paid one day later.

1. Tax benefits

The published regulation exempts from profit tax, the interest generated by the placement of pesos in Acquisitive Value Unit fixed terms, other bank deposits containing adjustment clauses, and the instruments destined to promote productive investment determined by the National Executive Power.

On the other hand, regarding the relationship applicable to Personal Property Tax, this will no longer be taxed:

  • Negotiable obligations in pesos, placed in a public offering and authorized by the CNV (Comisión Nacional de Valores – National Securities Commission);
  • Instruments intended to promote productive investment determined by the Executive Branch.
  • Mutual Investment Funds and Financial Trusts investing mainly in:
    1. Securities, bonds, and other securities issued by the Nation, provinces, municipalities, and the Autonomous City of Buenos Aires.
    2. Time deposits in Argentine and foreign currency made in Argentina in fixed-term.
    3. Savings bank placements.

2. August Tax Calendar

The established schedule eliminates the term, whether continuous or discontinuous, of at least thirty days in a year or the equivalent to the proportion of days considering the moment of entry to the equity of the shares. In this sense, the tax schedule for August will be defined as follows:

UTIC terminationDate of presentationDate of payment
0, 1, 2 y 308/10/2021, inclusive08/11/2021, inclusive
4, 5 y 608/11/2021, inclusive08/12/2021, inclusive
7, 8 y 908/12/2021, inclusive08/13/2021, inclusive
Source:  Infobae 10/08/21