The Ministry of Economy announced today a modification of the PAIS Tax for the purchase of dollars destined for transfers of profits and dividends, as well as the repatriation of investments generated by non-residents.
Decree 385/2024 incorporates new operations to the “Tax for an Inclusive and Solidarity Argentina (PAIS)” and From today it covers the purchase of banknotes and currencies in foreign currency for the distribution of profits and dividends, as well as for the repatriation of investments generated by non-residents in the country since September 1, 2019.
Besides, The tax rate is reduced to 17.5%, which is an advantage for the economic agents involved in these operations.
Another relevant aspect of the modification is the inclusion of subscriptions in pesos of “Bonds for the Reconstruction of a Free Argentina” (BOPREAL)issued by the Central Bank of the Argentine Republic (BCRA), within the scope of the PAIS tax.
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These subscriptions will be subject to tax in cases of payment of profits and dividends, as well as for the repatriation of non-resident investments.
The measure bears the signature of President Javier Milei, the Chief of Staff, Nicolás Posse and the Minister of Economy, Luis Caputo.
Among the foundations of the decree, it stands out that they seek to stimulate investment and guarantee a sustainable fiscal path in the country.
COUNTRY Tax: what are the latest changes
In summary, the changes that the Government applied to the PAIS Tax are:
- Modification of the COUNTRY Tax: affects the purchase of dollars destined for transfers of profits and dividends, as well as the repatriation of investments generated by non-residents in Argentina since September 2019.
- Rate reduction: Decree 385/2024 reduces the tax rate to 17.5%, which represents an advantage for the economic agents involved in these operations.
- Inclusion of subscriptions in pesos of bonds: subscriptions in pesos of the “Bonds for the Reconstruction of a Free Argentina” are included within the scope of the COUNTRY tax. These subscriptions will be subject to tax in cases of payment of profits and dividends, as well as for the repatriation of non-resident investments.
