Dividend and Investment Tax in Argentina

Argentina taxes investment income under a two-layer framework introduced by Ley 27.430 (December 2017) and administered by ARCA (Agencia de Recaudacion y Control Aduanero), the federal tax authority formerly known as AFIP. The system pairs a flat corporate-level Impuesto a las Ganancias (25-35% progressive) with a shareholder-level 7% withholding on distributed profits, while a separate cedular regime applies flat rates to most financial income earned by resident individuals. Inflation -- Argentina has experienced annual CPI growth well above 100% in recent years -- shapes both the design and practical effect of every rate cited here.

What dividend withholding tax applies to shareholders?

Argentine companies must withhold 7% on every dividend distribution made from profits generated in fiscal years beginning on or after 1 January 2018 [1]. The rate applies equally to resident individuals, resident companies (though inter-company dividends between Argentine entities are excluded from further income tax at the recipient level), and non-resident beneficiaries. For the pre-2018 accumulated earnings pool, the old equalization tax at 35% continues to apply to the extent distributions exceed tax-basis retained earnings at that year-end. ARCA confirmed the 7% rate extension in General Resolution 5060/2021. The combined corporate-plus-shareholder effective rate on new profits sits at roughly 30-38% depending on the corporate bracket, making Argentina's integrated dividend burden moderate by regional standards.

How does the cedular tax work for peso and foreign-currency income?

Ley 27.430 inserted a schedular (cedular) chapter into the Income Tax Law covering interest, returns, and gains realized by natural persons and undivided successions on financial instruments [2][3]. Two flat rates apply:

• 5% on income from ARS-denominated instruments without an inflation-adjustment clause (for example, traditional fixed-rate peso bank bonds, plain-vanilla peso corporate notes)
• 15% on income from instruments denominated in foreign currency (USD, EUR, etc.) or ARS instruments with an adjustment clause -- including UVA-indexed deposits and CER-linked bonds

The rate differential reflects the tax system's attempt to treat inflation-hedged instruments more heavily. These rates are final; cedular income is not aggregated into the progressive Impuesto a las Ganancias scale for individual filers. A simplified filing procedure is available where total cedular income does not exceed ARS 200,000 in the period.

Are capital gains on Argentine listed shares taxable?

No -- for resident individuals. Capital gains from selling shares and other securities traded on CNV-authorized stock exchanges (principally BYMA -- Bolsas y Mercados Argentinos) are exempt from Impuesto a las Ganancias, provided the transaction takes place through a regulated market [2]. This exemption also covers CEDEARs (Certificados de Deposito Argentinos), the local depositary receipts that track foreign equities including US stocks. Non-resident investors receive the exemption only if they do not reside in, and the funds do not originate from, a non-cooperative or low-tax jurisdiction [3]. Unlisted share sales by residents and all share sales by corporate investors do not benefit from the exemption and are subject to the 15% cedular rate.

How is bank deposit interest treated?

Interest on peso-denominated savings accounts (caja de ahorro) held at Argentine banks has traditionally been exempt from income tax for resident individuals [2]. Peso-denominated fixed-term deposits (plazo fijo) without an adjustment clause are similarly exempt in practice under the same logic, though financial institutions do apply cedular withholding to deposits with adjustment clauses at the 15% rate. A 2025 reform (effective for fiscal years beginning 1 January 2026) extended the deposit exemption to foreign-currency term deposits as well, replacing the prior "local currency" limitation -- meaning USD-denominated plazo fijo interest will also qualify for exemption from FY2026 onward [4].

How are non-residents taxed, and does a double tax treaty change anything?

Non-residents are subject to Argentine income tax only on Argentine-source income; worldwide income is not in scope [3]. The 7% dividend WHT applies regardless of residency. Interest paid to non-residents faces a higher effective withholding that typically ranges from 15.05% to 35% depending on the lender's nature and whether the interest rate is at arm's length. Argentina maintains 23 bilateral double tax treaties (DTTs) in force -- including agreements with Germany, France, Spain, the UK, Italy, Canada, Australia, Brazil, Chile, Mexico, and China (the China treaty entered into force on 26 November 2024, effective 1 January 2025) [5]. Treaties may reduce the applicable WHT rate on dividends, interest, and royalties; the specific reduced rate depends on each treaty. Argentina also participates in the OECD Common Reporting Standard for automatic exchange of financial account information, and has ratified the OECD Multilateral Instrument.

For cross-border investment structures, consult Argentina country overview for treaty partner details or speak with a qualified tax professional familiar with Argentine and home-country rules.

All rates and thresholds described here reflect ARCA guidance and published law as of the 2025-2026 fiscal period. Tax rules change, and this page is a general informational resource -- not a substitute for the judgment of a qualified tax professional with current Argentine credentials.