PAIS on payment of dividends and profits
Tax Law department report | PAIS on payment of dividends and profits
Through Decree 385/2024, published in the Official Gazette on May 6, 2024, changes were introduced to the Tax for an Inclusive and Solidary Argentina (“PAIS Tax”), extending the tax to the purchase of foreign currency by residents in the country for the payment of obligations related to profits and dividends.
It was determined that the PAIS Tax will apply to the purchase of foreign currency for the repatriation of portfolio investments by non-residents generated from profits and dividends received from September 1, 2019, onwards. Additionally, the rate for these operations is established at 17.5%.
Furthermore, the PAIS Tax will also apply to the subscription in pesos of “Bonds for the Reconstruction of a Free Argentina” (BOPREAL) issued by the Central Bank of the Argentine Republic (BCRA), and the subscription of those bonds or securities that the BCRA issues in the future to disburse profits and dividends or repatriate portfolio investments by non-residents generated from profits and dividends received as from September 1, 2019, onwards. Additionally, the rate for these operations is established at 17.5%.
We remain at your disposal for any additional information you may require.
Sincerely.
Santiago L. Montezanti
Enrique López Rivarola