Argentina is proposing to decrease its corporate income tax rate to 25% (from 35%) by 2021.
This decrease may be of particular interest to Canadian multinationals with investments in Argentina. The proposal was included in a tax reform plan that the country announced on October 31, 2017. However, the lower corporate income tax rate will only effectively apply to profits that are reinvested in Argentina. Under the proposal, an additional tax would also be levied on distributed dividends or profits, bringing the total corporate tax rate back to 35%.
Under its tax reform plan, Argentina's corporate income tax rate would be gradually reduced to 30% in 2019 and 2020, and then to 25% in 2021 and subsequent years.
The reform also proposes various measures related to value-added taxes (VAT) and individual taxpayers.
For more information, contact your KPMG adviser.
Information is current to November 14, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500