Agreements to Avoid Double Taxation and to Prevent Tax Evasion entered into by Argentina

Agreement with Luxembourg

On April 13, 2019, in Washington, United States, within the framework of the IMF and World Bank Spring Meetings, the Minister of Treasury, Nicolás Dujovne, and the Minister of Finance of Luxembourg, pierre Gramegna, signed an agreement to avoid double taxation. The agreement includes provisions on income and property tax and on the prevention of tax evasion and avoidance.

The execution of the agreement constitutes a milestone in the relationship between both countries and increases legal certainty.

This agreement includes anti-abuse provisions in accordance with the latest international recommendations. It has been signed by the Ministers, but it still needs the internal approval of each country for its entry into force.

Agreement between Chile and Argentina

Argentina and Chile have acknowledged the activation of the “most-favored nation clause” set forth in Article 12 of the Protocol to the Agreement to avoid double taxation.

As a result, the maximum percentage on the payment of the interest rate applied within the framework of the agreement has been reduced from 15% to 12% for payments as from January 1, 2019.

Agreement between Argentina and France

Both countries have agreed that the tax treatment set forth in Article 11, Section (b) of the Agreement is applicable to the interest rate paid regarding a loan granted, guaranteed or covered by the French governmental body Bpifrance Assurance Export.

Tax agreements entered into during the G20 Leaders Summit in Argentina

Within the framework of the last G20 Leaders Summit in Buenos Aires, the Agreement between Argentina and Turkey and the Agreement between Argentina and China were entered into.

Both agreements comply with the negotiation policy for tax agreements in Argentina and with the relevant international standards.