10-4-2026

Through  Law No. 27,803 (published in the Official Gazette on April 10, 2026), the Agreement entered into between the Argentine Republic and the Republic of Austria for the elimination of double taxation with respect to taxes on income and on capital, and for the prevention of tax evasion and avoidance, has been approved.

The aforementioned agreement was signed on December 6, 2019, and provides, for residents of Argentina, for the elimination of double taxation through the deduction — in the assessment of Argentine income tax (Impuesto a las Ganancias) or personal assets tax (Impuesto sobre los Bienes Personales) — of the tax paid in Austria. Such deduction may not exceed the portion of the tax (calculated prior to the deduction) attributable to the income or capital of the Argentine resident that may be subject to taxation in Austria.

In this regard, this new agreement does not provide for the exemption from the Personal Assets Tax that the previous agreement (terminated on January 1, 2009) granted with respect to holdings of Austrian bonds.

In the case of residents of Austria, the methods for eliminating double taxation are, with respect to income taxes, the credit method and the exemption method (depending on the type of income involved), and, with respect to capital taxation, the exemption method.

In the case of dividends paid by a company resident in Argentina to a company resident in Austria that holds at least 25% of its capital, such dividends shall be exempt from taxation in Austria, subject to the provisions of its domestic legislation (regardless of the minimum holding requirements established therein).

The agreement establishes limitations on withholding tax at source applicable to dividends, interest, royalties, and capital gains, and also sets forth the criteria for the allocation of taxing rights between both countries in relation to income attributable to permanent establishments, immovable property, business profits, dependent and independent personal services, directors’ fees, artists and athletes, pensions, and government service, among others.

Although the agreement has already been approved by the legislative authorities of both countries, it will enter into force once the Argentine Republic notifies the Republic of Austria — through diplomatic channels — of the completion of the approval process of the aforementioned law.

Provided that such notification takes place during the remainder of the current year, the agreement will apply to taxes withheld at source and to fiscal years beginning on or after January 1, 2027.