The government has already begun the mechanism that, from January 1, will force savers and investors of all sizes to pay the tax on financial income. Both Fixed Term Deposits and Investments in Bonds and Mutual Funds will be taxed at a rate of five percent on profits if they are US dollar positions or 15 if they are in local currency. The unmatched minimum for this type of earnings will be slightly over $ 66,000. This is the second tranche of tax reform.
The State Revenue Secretary, headed by Andrés Edelstein, has already sent a draft regulatory income tax bill to his website. There, accountants and professionals in the economic sciences will have room to make observations and suggest changes. The decree must be sanctioned before the end of the year, so the Federal Administration for State Revenue (AFPS) then issues resolutions to make the new provisions operational.
The first part of this fee began to apply earlier this year. This is the aliquot part that has affected the financial income of non-residents. Hurried by the opposition, the Morrisio Macri's government wanted to give a progressive image. He is progressing with the tax he was touching Lobac, who was issued with the Central Bank. The effect was the repulsion of foreign investors who came in to take advantage of the high incomes offered by the letters, coupled with a quiet dollar. Then the price of the dollar, which happened in just over a month from $ 20 to $ 42, broke out.
The tax on financial income will cause strong discomfort among investors and savers, a political price that will not be offset by the efficiency of collection. Daniel Vichyen, Commercial Director of Balanz's Common Investment Funds (FCI), estimated that this segment of the market would barely contribute about $ 200 million to the treasure. The analyst explained that "the total amount of common investment funds in the country amounts to about $ 570,000 million." As the only investments that will be released under the regulations will be the shares of Argentine companies, the FCI of local private securities will not be taxed. The problem that arises is how to determine when a fund is from local Argentine shares, as the majority combines different investments in their portfolios. The draft law establishes that they must own at least 75% of their underlying assets in Argentinean shares. This percentage may fall due to portfolios, but not more than 30 days a year. Vicien explained that out of the total managed funds, only $ 20,000 million are in local action. "This means that 550,000 million will be reached," said Balanz, who estimates that this group of FCI, whose portfolios consist of fixed income and public securities in the first 10 months of this year, earned $ 156,000 million in income. "If five percent is applied, they will pay $ 7.8 billion, a little more than $ 200 million." But the governor pointed out that since the tax is paid during the rescue, if the investor chooses to keep his money at the FCI, he does not pay taxes.
The other problem that needs to be understood is how finally Afip will determine that financial revenue is paid. Banks can act as holding agents, especially at fixed deadlines that are easier to determine. But what happens in the case of more sophisticated investors who can invest their capital in different instruments, some of which may lose in a given period and others have a positive return.
There they assume that Afip can determine that those who have reached the tax return have sworn. "How can a FCI administrator determine if his client exceeds the taxable minimum," explained Vicien. Above all, if the person had other types of investment in a bank.
Another point to consider. Adverse reactions are certificates of shares of Argentinian companies listed on the New York Stock Exchange. They will pay financial income. But it may happen that an investor would like to avoid this tax. When the company pays its dividends, some may sell the certificate to the United States and buy the relevant local stake. But that was already off. Sales of ADR and switching to local stock will also be taxed.