As mentioned, dividends are tax free according to the integration system of income between companies and physical persons. All income is subject to tax in companies’ top level, and is tax free when it flows to shareholders (or partners in case of S.R.L.) as dividends.
However, an equalization tax is applied when the amount of dividend paid is higher than the accumulated taxable income. Equalization tax rate is 35%.
Banco Central de la República Argentina, or Central Bank, is designated to manage foreign currency negotiation. Importers must acquire from the Central Bank the foreign currency to pay abroad, and exporters are obliged to sell – subject to certain due dates – foreign currency obtained through their exports, to obtain pesos.
Transfers of capital from other countries are obliged to constitute a time deposit for 360 days with no interest, equivalent to 30% of the currency received. This rule has some exceptions, e.g. transfer of currency to acquire participations in local companies.
Transfers out of the country must have a certain origin, permitted by the Central Bank. Otherwise, the Central Bank rejects selling foreign currency.
This document is provided by Estudio Sambuccetti y Asociados as a general overview of matters to be considered when setting up an overseas business in Argentina. It is essential to take advice on specific issues. No liability can be accepted for any action taken or not taken arising from the information provided in this publication.
If you are setting up a business in
Argentina, the members of DFK International can help you to achieve this efficiently. You will receive practical advice on business issues, tailored to meet your objectives, from experienced business advisers.