Tax law: extraordinary contribution on the capital of cooperatives and mutual associations.
CIRCULAR
Tax Department report: extraordinary contribution on the capital of cooperatives and mutual associations.
Dear Sir or Madam,
We inform you that on January 8th, 2019, Law No. 27.486 was published in the Official Gazette (hereinafter the “Law”), through which the “Extraordinary Contribution on the capital of Cooperatives and Mutual Associations concerning Savings, Credits, Financial, Insurance or Reinsurance” was created. This extraordinary contribution will only apply for the first four fiscal periods beginning after January 1st, 2018.
The Law allows the entities subject to the extraordinary contribution a deduction of $50,000,000 on the taxable capital, which will operate in practice as a non-taxable minimum. This amount will be adjusted as from the period 2020, using the variation of the Consumer Price Index (CPI) provided by the INDEC.
Furthermore, the rate of the extraordinary contribution will be 3% on the taxable capital up to $100,000,000 and 4% on the taxable capital that exceeds $100,000,000. Those amounts will also be adjusted as from the period 2020, using the variation of the Consumer Price Index (CPI) provided by the INDEC. Additionally, the Law established that the contribution cannot exceed, in any case, 25% of the accounting surpluses of the entities, after the deduction of certain amounts established in article 13 of the Law.
Should you require any further information on this matter, please do not hesitate to contact us.
Sincerely.
Santiago L. Montezanti