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Argentina Introduces Incentives for ARS Denominated Investments — Orbitax Tax News & Alerts

Argentina published Law 27638 in the Official Gazette on 4 August 2021, which provides for the introduction of certain income tax and personal assets tax exemptions to support investments denominated in Argentine pesos (ARS). This includes an income tax exemption on interest derived from ARS denominated bank deposits with an adjustment clause for inflation, as well as an income tax exemption on interest or income derived from ARS denominated financial instruments to be created by the Executive to promote productive investments (pending required legislation). Law 27638 also provides an exemption from personal assets tax on qualifying ARS denominated commercial paper, financial instruments to be created by the Executive to promote productive investments, and shares in regulated mutual investment funds, the underlying assets of which include promoted securities or investments (minimum percentage to be prescribed).

Law 27638 entered into force on the date it was published, and the exemptions generally apply from the 2021 tax period.