Law No. 27.638 (the “Law”), which has not yet been published in the Official Gazette, introduced amendments to the Income Tax Law and the Personal Property Tax Law.
One of the great problems of the Argentine economy is inflation, which generates a strong devaluation of the local currency, loss of purchasing power, among other consequences.
Due to the loss of confidence in the local legal tender, the average citizen decides to seek an alternative form of savings such as the dollar, bitcoin or simply invest in securities.
This is how the national government seeks to generate relief for taxpayers in relation to income tax and tax on assets, strengthening confidence in the local currency, seeking to encourage savings for the purpose of investing in local production.
The Law seeks to alleviate the tax burden in relation to taxpayers and their savings.
Tax on Assets
In relation to the tax on assets, the regulation seeks to incorporate three new exemptions:
- Negotiable obligations (ON): They are those ON that comply with the requirements of article 36 of law 23.576, the ON that are offered in public offering and have the authorization of the Local financial markets authority (CNV).
- Common Investment Fund (FCI): within the exemptions provided, the shares of the FCI included in article 1 of Law 24.083 are contemplated, together with the certificates of participation and securities representing the fiduciary debt of financial trusts that have been placed by public offering of shares authorized by the CNV and whose main underlying asset is made up of at least a percentage to be determined by the regulations for the deposits or assets determined in paragraphs g), h), i) and j) of the article 21 of the tribute.
- National government financial Instruments: Are those instruments issued in national currency intended to promote productive investment established by the national government.
In income tax, the rule establishes the exemption of interest and income:
a) That are originated in the placement of deposits with adjustment clauses.
b) That are originated in the placement of fixed terms or savings bank.
c) That they originate from the placement of capital in instruments issued in national currency intended to promote productive investment established by the national government.