Sunday, October 1

“Personal Property Effect”: local investors repatriate their dollars to pay less tax

It is important to note that Liquid dollars in an account abroad are subject to an incremental rate (2.25%), while those held in the account of a local broker are considered in the country, since they are credits with the ALyC itself or with the Caja de Valores, so the tax rate is 1.25%.

The ‘cash with settlement’ (CCL) is the stock exchange method by which local assets are bought in pesos and settled in dollars abroad, with the reverse path for what they intend to bring money into the country.

The foreign exchange repatriation occurs despite economic uncertainty: slow negotiations with the IMF, high inflation, legislative rejection of the 2022 budget project and an over-issuance of funds to the Treasury, are just some of the issues that the country carries, after the defeat of the Government in the recent mid-term elections.

This “exchange summer” is used by those who benefit from the transfer of dollars abroad, to the detriment of the scarce reserves of the central bank (BCRA).