The Decree 279/2018 was published on April 9, 2018 in the Official Gazette. The provisions of this decree effects from April 10, 2018. This Decree regulates the scope of the Income Tax of the financial income in order to achieve a correct application of the provisions approved by Title I of the Income Tax Law (Law 27,430), which established that foreigners who acquire financial assets in the country are subject to the tax as local investors.

The Law No. 27,430 or comprehensive tax reform was published on December 29, 2017 in the Official Gazette and it generally applies from January 1, 2018. This Law introduced various amendments to the Income Tax Law. Some main provisions are:

• The 35% tax provided for in article 91 of the Income Tax Law, shall be applied to the profit obtained by a beneficiary from abroad residing in jurisdictions not Cooperatives or funds come from non-cooperating jurisdictions.
• In the case when the beneficiary from abroad does not have a legal representative domiciled in the country, the tax must be paid directly by the beneficiary himself.
• The interest or income and the results from the purchase, exchange, exchange or disposal of certain securities obtained by the beneficiaries abroad are exempt from the tax, treatment that does not apply when dealing with letters of the central bank of the Argentine Republic.
• A list of non-cooperating jurisdictions was made with the help of the provisions of Decree 589/2013, and can be found on the tax authority’s website.
• A mutual fund shall be considered to be composed of a principal underlying asset when the same class of assets represents, at least 75% of the total investments of the fund. In the case of investors “beneficiaries from abroad”, when a mutual fund included in the first paragraph of article 1 of Law No. 24,083 is composed of a principal underlying asset, the distribution of profits will receive the corresponding treatment of that underlying asset.