From 2019, earnings from capital markets income in Argentina may be taxed. The proposal was included in the tax reform bill passed by Law 27.430 in December 2017; however it has yet to be implemented. The regulatory decree will probably be published in the next few days. At the same time, the Federal Administration of Public Revenues (AFIP) is expected to issue a resolution during the first fortnight of January 2019.
The tax reform taxes profits derived from Argentinian sources obtained from the placement of capital in securities or from interest drawn from term deposits. Investments in pesos will be taxed at 5%, while those in dollars, or in the national currency with an adjustment clause, will be taxed at 15%. The differentiation according to the origin of the funds would apply to all types of investments with the exception of common investment funds. In this last case, the regulatory decree could equal the tax burden.
In some cases, banks could act as withholding agents, but the mechanisms to tax the most sophisticated investors have yet to be defined.