The Argentine Tax Authorities (“AFIP”) published General Resolution No 4190/2018 (“GR 4190”) on January 12, 2018 in the Official Gazette and issued it on January 11, 2018. As a result of the recent tax reform enacted through Law 27,430, a new procedure will be implemented. So, this new Resolution repeals both the previous Resolutions 4094-E/2017 and 4095-E/2017. That means it revokes the withholding system for income tax in cases where both the seller and the purchaser of holdings in local Argentine companies are not residents of Argentina.
General Resolution No. 4094-E/2017 was published on July 18, 2017, establishing the method for withholding and paying capital gains tax acquired by nonresidents. On the other hand, General Resolution No. 4095-E/2017 was published on July 20, 2017, suspending for 180 days the application of General Resolution No. 4094-E/2017. That General Resolution No. 4,094-E and its supplementary provision set forth the procedure to be applied for the determination and entry of the withholding of income tax as a single and definitive payment with respect to purchase, exchange, exchange or disposition operations of shares, quotas and social participations -including the shares of mutual funds-, securities, bonds and other securities, made with foreign beneficiaries. Lastly, on January 11, 2018, AFIP enacted GR 4190 that repeals the mentioned GR 4094.
