On December 27, 2018, the Executive published Decree 1170/2018, which regulates financial income tax for individuals residing in Argentina. The regulation was complemented by two resolutions of the Federal Administration of Public Revenues (AFIP) January 3, 2019. The first resolution details the information that financial entities must pass to AFIP. The other provides the required documentation to calculate the net income subject to schedular tax.
Beyond the fact that the tax on residents’ financial income covers fixed terms, the purchase and sale of dollars, shares and public securities, this decree only regulates the scope of the income tax on financial investment income with a 5%-15% rate. However, in order to be covered, the profit margin must surpass 67 thousand pesos.
Meanwhile, AFIP, through general resolution 4394/2019, specified the information that financial entities must hand over to facilitate the audit of returns obtained by capital placements made. The information to be provided will depend on the operation performed by the client. Finally, through General Resolution 4395/2019, AFIP published a table outlining the documentation that taxpayers must consider in determining the net income subject to schedular tax.