Those who have made a fixed term or other investments in dollars or other foreign currencies do not pay or pay less tax on financial income than those who invested in pesos. And those who saved in pesos in the beginning of 2018 and from 150,000 dollars will be subject to this tax.
This is one of strong distortions and injustices. income tax which implies "Penalty for savings in pesos" and encouraging "dollarization"According to the IARAF (Argentine Institute for Fiscal Analysis).
This tax is 5% if investments are made in pesos without an adjustment clause, and 15% in foreign currency or with an adjustment clause for increasing the value of the exchange rate. and it applies to income received in 2018 in excess of $ 66,918.
Therefore, when accounting for savings or investment in pesos at face value during high inflation times, 5% tax in pesos is much higher than 15% in dollars or any other foreign currency.
IARAF gives the following example. with initial capital of 2 million dollarsIf at the beginning of 2018, the investor chose a total fixed term in pesos at an average annual effective rate of 55%, he would have to pay a tax of $ 51,650As soon as a special deduction is calculated and an aliquot of 5% is applied.
If the same capital was invested in a regulated placement based on the cost-of-living index (which is supposed to be 45% per annum for simplicity) and an annual effective interest rate of 10%, although it will be deposited before tax in an amount identical to the first option ($ 1.1 million .) tax is determined it will be only $ 30,000,
Finally, if the capital is converted into dollars and, in turn, is placed for a fixed term at an annual rate of 1%, a tax of $ 6,160 will be received.
IARAF says that it is unfair that the tax applies to nominal and unrealistic profits and it should be possible to subtract the rate of inflation from the yield obtained and apply 15%, as in the case of placement with an adjustment clause or in foreign currency.
Taking into account the interest rates applied after the devaluation of the peso, IARAF estimates that "only $ 150,000 of seed capital will be achieved through a holding tax at the beginning of the 2018 fiscal year." And he adds that “this situation implies that a large number of subjects of the simplified regime (Monotributo), dependent workers, tenants or pensioners who were not taxed until the fiscal year 2017 or were not required to submit statements under oath, they should do it henceforth, given the magnitude of the financial return nominal registered in 2018, will include a large number of new taxpayers of tax, forced to submit comprehensive income tax affidavits (DDJJ), if it is not established simplified mode which would be highly recommended. "