Global Tax Alert (News from Americas Tax Center) | 19 December 2013

Argentina publishes law approving Argentina-Spain Tax Treaty

  • Share

On 18 December 2013, Argentine Law 26,918 was published in the Official Gazette, approving the Tax Treaty for the Avoidance of Double Taxation and Prevention of Fiscal Evasion signed between Argentina and Spain on 11 March 2013.

Article 28 of the Treaty indicates that once the ratification instruments are exchanged between the countries, the entry into force would take place from 1 January 2013.

In this regard, it is necessary for the countries to formally notify each other of the completion of all the necessary steps in their jurisdiction for the Treaty to enter into force. Through Law 26,918, the Argentine Congress has approved the Treaty. As previously reported, the Spanish Congress has already approved the Treaty.

It should be remembered that Argentina and Spain have signed this new Tax Treaty, which replaces the previous Treaty in force until the end of 2012.

In summary, the new Tax Treaty includes – among other changes in relation to the previous Treaty – the elimination of the exemption for Spanish shareholders from the Argentine tax on personal assets, modifications to the exchange of information clause, and the elimination of the most-favored nation clause, which established the automatic application of lower withholding rates if Argentina agreed to lower withholding rates in other treaties with OECD countries.1

Endnote

1. For more information on the Treaty, see EY Global Tax Alerts: New Tax Treaty signed between Argentina and Spain dated 14 March 2013 and Argentina updates on new tax treaty developments dated 12 November 2013.

For additional information with respect to this Alert, please contact the following:

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires
  • Carlos Casanovas
    +54 11 4318 1737
    carlos.casanovas@ar.ey.com
  • Gustavo Scravaglieri
    +54 11 4510 2224
    gustavo.scravaglieri@ar.ey.com
  • Ariel Becher
    +54 11 4318 1686
    ariel.becher@ar.ey.com
  • Pablo Baroffio
    +54 11 4510 2271
    pablo.baroffio@ar.ey.com
Ernst & Young LLP, Latin American Business Center, New York
  • Alfredo Alvarez
    +1 212 773 5936
    alfredo.alvarez@ey.com
  • Pablo Wejcman
    +1 212 773 5129
    pablo.wejcman@ey.com

EYG no. CM4047