In the midst of the discussion of the release of the stocks, the Government ordered to expand the COUNTRY Tax both for transfers of profits and dividends, and for those who subscribe to the BOPREALES.
In the midst of the discussion of the liberation of stocks, he Government ordered to expand the COUNTRY TAX both for the purchase of currency intended for money transfers utilities and dividends, as for those who subscribe to the Bonds for the Reconstruction of a Free Argentina (BOPREAL). The regulations incorporate a 17.5% rate to this end.
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Through decree 385/2024 published tonight in the Official Gazette, the president Javier Milei and the Minister of Economy, Luis Caputo, they arranged a expansion of the Tax “For an Inclusive and Solidarity Argentina” (COUNTRY) implemented in the management of Alberto Fernández to limit access to the exchange market.
The text indicates that given the decision of the BCRA to allow importers of goods and services to subscribe to the BOPREALES “for up to the amount of the debt pending payment for their imports (…)” it is considered appropriate “to extend the scope of the COUNTRY tax to purchases of banknotes and foreign currency in foreign currency for the distribution of profits and dividends and for the repatriation of non-resident portfolio investments generated in collections in the country of such concepts received since September 1, 2019, inclusive, as well as to BOPREAL subscriptions that are carried out for such purposes”.
The objective of the new exchange regulation is “continue to deepen national investment incentives that stimulate production and economic activities in the country, guaranteeing a sustainable fiscal path.”
The Government expanded the COUNTRY tax
Based on this, the President, together with the Minister of Economy and the Chief of Staff, Nicolás Posse, decreed incorporate a new subsection (f)) from the first to Title III of Decree No. 99 of December 27, 2019, which states that in the case of profits and dividends the rate established in the PAIS tax will be 17.5% “the provisions of subsection a) of the first paragraph of that article shall apply.”
Article 2 of the decree published tonight indicates that “article 13 is incorporated quinquies” whose legend indicates that the following operations will be covered for the COUNTRY tax:
- “a) The purchase operations of tickets and foreign exchange in foreign currency for the repatriation of non-resident portfolio investments generated in collections in the country of profits and dividends received as of September 1, 2019, inclusive, in the terms provided by the CENTRAL BANK OF THE ARGENTINE REPUBLIC (BCRA) within the framework of the regulations on access to the free exchange market.” In this case, The rate will also be 17.5%.
- “b) The subscription in pesos of “Bonds for the Reconstruction of a Free Argentina” (BOPREAL) issued by the CENTRAL BANK OF THE ARGENTINE REPUBLIC (BCRA) or those bonds or securities that that institution issues in the future for the same purpose, by those who acquire them for: (i) payment of profits and dividends, in the terms provided by the CENTRAL BANK OF THE ARGENTINE REPUBLIC (BCRA) within the framework of the regulations of access to the free exchange market and/or (ii) repatriation of non-resident portfolio investments generated in collections in the country of profits and dividends received as of September 1, 2019, inclusive, in the terms provided by the CENTRAL BANK OF THE ARGENTINE REPUBLIC (BCRA) within the framework of the regulations for access to the free exchange market.” In the same way as in the previous provisions, The rate will also be 17.5%.
