Paying dividends and profits abroad: FX access, taxes and timing

Key rules

1. Corporate law: when a dividend can be declared

Source of the dividend. Dividends may be approved and distributed only out of realised and liquid profits resulting from a balance sheet prepared according to the law and the bylaws and approved by the competent corporate body (Law 19.550, art. 68). For corporations (SA, SAU), art. 224 repeats the rule: distributions are lawful only if they result from realised and liquid profits in a regularly prepared and approved annual balance sheet. Dividends paid in breach of the rule are recoverable by the company, except dividends received in good faith from a corporation (arts. 68 and 225).

Interim dividends. Art. 224, second paragraph, prohibits interim, provisional or special balance sheet dividends, except in companies subject to permanent state supervision under art. 299. Directors, supervisory board members and statutory auditors are jointly and without limit liable for unlawful distributions (art. 224, third paragraph). Since Res. MJ 10/2024 (BO 8 February 2024), the capital threshold of art. 299(2) is ARS 2,000,000,000 (US$ 1,278,854). Note the FX consequence below: even where interim dividends are lawful, the FX route in point 3.4.4.1 refers to annual statements.

Prior losses. Profits cannot be distributed until losses of previous years are covered (art. 71).

Legal reserve. SRLs and corporations must allocate not less than 5% of the realised and liquid profits of the year to a legal reserve, until the reserve reaches 20% of capital. If the reserve is later reduced for any reason, no profits may be distributed until it is restored (art. 70, first and second paragraphs). Other reserves are allowed if reasonable and prudent; in corporations, reserves above capital plus legal reserves need the special majority of art. 244, last part; in SRLs, the majority required to amend the contract (art. 70, third paragraph).

Directors' fees cap. In corporations, total board pay may not exceed 25% of profits; the cap falls to 5% if no dividend is paid and rises proportionally with the distribution, unless the meeting expressly approves an excess as a separate agenda item (art. 261). This matters when planning how much of the year's profit goes to dividends.

Who approves.

• SA and SAU. The ordinary shareholders' meeting considers the balance sheet, the income statement, the distribution of profits, the directors' report (memoria) and the statutory auditor's report (art. 234(1)). It must be called to meet within four months of year end (art. 234, last paragraph). Notice: publication for five days, at least 10 and not more than 30 days before the meeting, in the official gazette, plus a major newspaper for art. 299 companies (art. 237). A unanimous meeting of all voting shares can be held without publication (art. 237, last paragraph).
• SRL. Decisions are taken as the contract provides; failing that, by written consultation answered within 10 days or by a written statement signed by all partners (art. 159, first paragraph). SRLs whose capital reaches the art. 299(2) threshold must hold a meeting on the year's financial statements, called within four months of year end and following SA rules (art. 159, second and third paragraphs). Decisions not amending the contract are taken by majority of the capital present or participating, unless the contract requires more (art. 160, last paragraph).
• Documents available to members. Copies of the balance sheet, income statement, statement of changes in equity, notes and annexes (and the directors' report and statutory auditor's report, when applicable) must be at the registered office at least 15 days before the meeting. Within 15 days of approval, SRLs at the art. 299(2) threshold file a copy with the Public Registry, and corporations file with the supervisory authority (art. 67).
• Directors' report. It must explain the reasons for proposed reserves and, in detail, why a dividend is proposed in a form other than cash (art. 66(3) and (4)). This is relevant if the company pays a dividend in BOPREAL bonds or other assets.

Audit. The Companies Law does not require an external audit for every company. The FX rules do: the profits must come from "balances cerrados y auditados" (point 3.4.1), and point 3.4.4.1 refers to "estados contables anuales regulares y auditados". In practice, a small SRL or SAS that never needed an audit must obtain one before it can pay a dividend abroad through the official market. Who may sign the audit report and the professional standards that apply are outside the sources reviewed (unconfirmed).

Branches. A foreign company's branch must keep separate accounting in Argentina and submit to the supervision applicable to its type (art. 120). Branch profits are not "dividends" under corporate law; see section 5 for tax and section 6 for FX.

2. Income tax on dividends paid abroad

Taxable income. Dividends and profits distributed by Argentine companies (SA, SAU, SAS, SRL and others listed in ITL art. 73(a)) are second category income (ITL art. 48(i)). They are taxable for the beneficiary whatever company funds are used, including old reserves, exempt income and share premium (art. 49, first paragraph). SRL distributions get the same treatment (art. 49, first paragraph, second sentence, referring to art. 73(a)(2)). Dividends in kind are valued at market value on the date they are made available (art. 49, second paragraph). Bonus shares from revaluations or capitalisation of profits are not taxable (art. 49, third paragraph). Share redemptions are dividends for the excess over computable cost (art. 49, fourth paragraph).

Deemed dividends. Art. 50 presumes a dividend when shareholders withdraw funds, use company assets (8% a year of market value for real estate, 20% for other assets), have company assets executed under guarantees given for them, trade with the company off market, receive non business expenses, or receive salaries or fees without proof of services. These presumptions also catch disguised profit extraction to foreign parents.

Rate: 7%, final. The net income from dividends tax at 7% (ITL art. 97, first paragraph; rate substituted from 13% by Law 27.630, art. 7, BO 16 June 2021, effective for fiscal years starting from 1 January 2021). When dividends are paid to foreign beneficiaries, the payer withholds 7% and pays it to ARCA as a single and final payment (art. 97, fourth paragraph). Dividends do not fall under the 35% presumed income regime of art. 102 for foreign beneficiaries; they follow art. 97 (see the withholdings page).

Transitional rules (ITL art. 193; Decree 862/2019, art. 119).

• The 7% applies "to the extent" the company's profits were subject to the corporate scale; for the three fiscal years starting from 1 January 2018, the rates were 7% (dividends) and 30% (company), whatever the year in which the dividend is paid (art. 193, first paragraph, as substituted by Law 27.630, art. 9).
• No dividend tax is due on distributions of profits generated in fiscal years in which the payer was taxed at 35% (art. 193, second paragraph). The regulation pins this to taxable profits accumulated at the close of the last fiscal year before the one starting from 1 January 2018 that were taxed at 35% (Decree 862/2019, art. 119, second paragraph).
• First in, first out. Dividends are presumed, without proof to the contrary, to come first from the oldest accumulated profits (art. 193, third paragraph). The regulation adds that the pre 2018 pool includes liquid and realised profits, profit reserves and share premiums accumulated at the close of the year before the one starting from 1 January 2018, adjusted for inflation where applicable (Decree 862/2019, art. 119, first paragraph) (unconfirmed).

Plain reading problem. Art. 193, second paragraph, read alone, could suggest that any year in which a company falls in the current 35% top bracket of art. 73 is exempt from the 7%. The regulation (art. 119) limits the exemption to profits accumulated before the first fiscal year starting on or after 1 January 2018. This page follows the regulation; a taxpayer relying on the wider reading would be contradicting it.

Equalisation tax (ITL art. 74). When a company pays dividends that exceed its taxable income (determined under the general rules) accumulated at the close of the year before the payment, it must withhold 35% of the excess as a single and final payment. Taxable income for this test is reduced by the tax paid for the period of origin and increased by dividends received from other companies (art. 74, second paragraph). The regulation applies it to dividends paid from any company funds, including reserves, exempt income and share premium (Decree 862/2019, art. 166), prorates the excess among beneficiaries (art. 168), and defines the moment of payment broadly (art. 167). Law 27.430, art. 83, says the equalisation tax does not apply to dividends attributable to profits accrued in fiscal years starting on or after 1 January 2018. So in practice art. 74 is only a risk for pre 2018 retained earnings. When pre 2018 profits are distributed, the comparison includes profits of later years (Decree 862/2019, art. 166, last paragraph). How the 7% and the 35% interact when both could apply to the same distribution is not settled in the sources reviewed (unconfirmed).

Treaties. Argentina's tax treaties cap source taxation of dividends; the caps in force are at or above 7% for ordinary dividends, so a treaty rarely reduces the 7%. Some protocols (Switzerland, Chile) state that the cap does not apply to the equalisation withholding. There is no comprehensive tax treaty with the United States. See the treaties page for rates and the RG 5855/2026 procedure for claiming treaty relief.

Corporate tax first. The 7% is on top of corporate income tax on the company's profit. For fiscal years starting in 2026, the corporate scale is 25% up to ARS 133,514,185.74 of net taxable income, 30% on the next band up to ARS 1,335,141,857.38, and 35% above that, with fixed amounts of ARS 33,378,546.43 and ARS 393,866,847.93 (ITL art. 73(a); ARCA scale 2026). Details are on the corporate income tax page.

3. How the withholding is paid (ARCA)

Rule in force in the sources. RG 739/1999 (AFIP, BO 20 December 1999, updated text) governs the deposit of final withholdings on payments to foreign beneficiaries:

• The withholding agent withholds when the payment occurs, or before ordering the transfer through an intermediary (art. 5). "Payment" follows the definition in the income tax law, which includes crediting, making available and other forms of settlement (art. 4).
• If the payer bears the tax, the base is grossed up (art. 2).
• Foreign currency amounts are converted at the rate of the actual FX transaction for the payment, or failing that, at the Banco de la Nación selling rate at the close of the previous FX business day (art. 3).
• Each withholding is deposited individually by the due date set in RG 738 for the half month (quincena) in which it arose, through the SICORE system and payment form F. 799/S (arts. 9 to 11). A withholding certificate is generated in SICORE for the foreign beneficiary (art. 12).
• Banks or other intermediaries that make the transfer must withhold if the payer did not, and must not make the transfer until funds for the tax are provided when the payer bears it (art. 6).

Open points. RG 739 art. 1 lists the articles of the 1997 text of the income tax law; it predates the 2017 dividend tax. The sources reviewed do not confirm whether ARCA applies RG 739 and SICORE to the art. 97 withholding on dividends to foreign shareholders, or a later system (unconfirmed). The treaties page records the same doubt about the SIRE system cited in RG 5855/2026.

Timing of the tax. Because "payment" includes making the dividend available, ARCA could argue that the 7% is due when the meeting approves the dividend and credits it to the shareholder's account, even if the dollars cannot be wired out for months. Whether the withholding must be deposited at approval, at crediting, or only at remittance for a dividend that is approved but trapped by FX rules is not answered in the sources (unconfirmed). Plan cash so the company can deposit the tax at the earliest of these dates.

4. Personal assets tax: the company pays for its shareholders

The personal assets tax on shares and quotas in companies governed by Law 19.550 held by Argentine or foreign individuals, undivided estates and foreign companies or entities is paid by the company at 0.50% of the proportional equity value (valor patrimonial proporcional) from the last balance sheet closed by 31 December of the year (Law 23.966, Title VI, article after art. 25, first paragraph, as substituted by Law 27.541, art. 29; art. 22(h), third paragraph). The tax is a single and final payment. Shares owned by foreign entities are conclusively presumed to belong indirectly to foreign individuals (second paragraph), which is why a foreign corporate parent cannot avoid it. The company has the right to recover the amount from the shareholder, including by withholding or executing the assets that gave rise to the payment (third paragraph), which in practice often means deducting it from the next dividend.

Some treaties allow Argentina to tax shares under a wealth tax article; the treaties page covers the Swiss example. Filing and payment dates for the substitute taxpayer return are not in the sources reviewed (unconfirmed). For SMEs, Law 27.743 art. 65 granted a 0.125 point reduction for 2023 to 2025 if they complied for 2020 to 2022 (see the personal assets page).

5. Branch profit remittances

Brief pointer confirmed: ITL art. 73(b) subjects permanent establishments (art. 22) to the corporate scale and requires them to pay an additional 7% "at the moment of remitting profits to the head office" (art. 73(b), second paragraph, as substituted by Law 27.630, art. 4). The transitional rules of art. 193 and the pre 2018 exemption of Decree 862/2019 art. 119 apply to branches as well (art. 119 refers to art. 73(b)). The equalisation tax also covers branches (art. 74 refers to art. 73(b)), again only for pre 2018 profits (Law 27.430, art. 83).

For FX purposes, point 3.4 speaks only of "utilidades y dividendos a accionistas no residentes" and of the distribution decided by the "asamblea de accionistas". A branch has no shareholders and no meeting. The consolidated text does not say whether banks may process branch remittances under point 3.4 with the head office's decision instead of a meeting, or whether they need prior approval (unconfirmed). Treat this as an open question to settle with the bank before relying on it.

6. FX market access: the dividend rule (point 3.4)

Banks may give access to the FX market to transfer profits and dividends to non resident shareholders if all the following conditions are met:

Routes under point 3.4.4:

• 3.4.4.1. 2025 onwards profits. Distributable profits obtained from realised gains in regular and audited annual financial statements of fiscal years started on or after 1 January 2025. Origin: Com. A 8226, point 6 (11 April 2025, effective 14 April 2025).
• 3.4.4.2. BOPREAL collections. Payment through a swap or arbitrage with funds in a local account that come from foreign currency principal or interest collections of BOPREAL bonds.
• 3.4.4.3. RIGI. A RIGI VPU paying profits on qualifying foreign direct investment under point 14.2.2, with proof of final capitalisation.
• 3.4.4.4. 30% of new FDI. The company registered direct investment contributions converted from 17 January 2020. Total dividend transfers through the FX market since that date, including this one, may not exceed 30% of new FDI contributions brought in and converted since then. The bank needs a certificate from the bank that converted the contribution stating that it has not certified more than 30%. Benefits used under Decree 277/2022 are deducted. Access must be at least 30 calendar days after the last contribution counted. The client must prove final capitalisation, or prove that registration of the capitalisation has started and undertake to file it within 365 calendar days.
• 3.4.4.5. Plan Gas. Profits from FDI converted from 16 November 2020 for Plan Gas projects (Decree 892/2020), at least 2 years after conversion, with proof of capitalisation.
• 3.4.4.6 and 3.4.4.7. Holders of a Decree 277/2022 certificate (oil and gas) or of a certificate of increased exports of goods for 2021 to 2023, for the equivalent amount.

Everything else needs BCRA prior approval (point 3.4, closing paragraph). As an alternative, clients may subscribe BOPREAL for up to the peso amount of dividends pending payment to non resident shareholders, if those dividends are subject to prior approval and point 4.6.1 is met (point 3.4, final paragraph).

Complementary sworn statements (point 3.16). These apply to every outflow, dividends included:

• The client is not on ARCA's list of issuers of apocryphal invoices; if it is, prior approval is needed (point 3.16.1).
• Liquid foreign assets and CEDEARs. All the client's foreign currency in Argentina is in bank accounts, and at the start of the day it held no more than USD 100,000 in CEDEARs and liquid foreign assets combined, with listed exclusions; and it will convert within 5 business days certain funds received abroad (point 3.16.2).
• Cross restriction (non individuals). On the day of access and in the 90 calendar days before, and for the 90 calendar days after, the client has not and will not, directly or indirectly: sell securities in Argentina for foreign currency settlement; swap resident issued securities for foreign assets; transfer securities to foreign depositaries; buy foreign issued securities in Argentina for pesos; buy CEDEARs; buy private debt issued under foreign law; or hand over pesos or other local assets to anyone in exchange for foreign assets, crypto assets or securities held abroad (points 3.16.3.1 and 3.16.3.2).
• Group statements (legal entities). List of direct controllers and group companies (point 3.16.3.3), and a statement that on the day of access and in the previous 90 days the company has not delivered in Argentina pesos or other liquid local assets to any person with direct control over it or to group companies, except in ordinary purchases of goods or services between residents (point 3.16.3.4).
• The bank applies enhanced checks if the client is on the BCRA list of CUITs with inconsistent operations (point 3.16.4).

Point 3.16.3.4 is the rule that makes the "pay in pesos and let the parent do CCL" approach costly: a peso dividend to a controlling shareholder is a delivery of pesos to a controller that is not a purchase of goods or services. See Example 2.

7. BOPREAL: the route for trapped dividends

BOPREAL ("Bonos para la Reconstrucción de una Argentina Libre") are BCRA notes in US dollars subscribed in pesos. Three FX rules matter for dividends:

• Subscription by the paying company (point 4.6.1, from Com. A 7999 of 30 April 2024). A company may subscribe BOPREAL for up to the peso equivalent of dividends pending payment to non resident shareholders under the meeting's distribution. The subscribing bank checks: documents proving the debt is for dividends from closed and audited balance sheets (4.6.1.1); declaration in the last survey already due (4.6.1.2); the complementary requirements of points 3.16.1 to 3.16.4 (4.6.1.3); and a sworn statement that the dividends are pending, that the mechanism has not been used for that debt, and that the company will not have access to the FX market to pay that debt except through a swap of BOPREAL collections (4.6.1.4). The bank books a sale ticket under concept code "I09. Registro de utilidades y dividendos por adjudicación de bonos BOPREAL" for the nominal value allotted.
• Subscription by a non resident who already received pesos (point 4.6.2). A non resident who collected dividends in pesos in Argentina since 1 September 2019 and never sent them abroad may subscribe BOPREAL for up to that peso amount adjusted by the latest CPI available at subscription, with similar documents and a sworn statement. The company that paid the dividend must meet points 3.16.1 to 3.16.4, and the ticket is booked in its name under code "P21".
• Using the bonds (point 4.8). BOPREAL collections (principal and interest in foreign currency) may be swapped or arbitraged to pay the eligible dividend (4.8.1.3) or to repatriate the non resident's peso dividends (4.8.1.4; also point 3.13.1.14). Sales of BOPREAL acquired in a primary subscription under 4.6, for foreign currency in Argentina or abroad, and transfers to foreign depositaries, are ignored for the 90 day statements up to the amount subscribed (4.8.2). A holder who subscribed under 4.6.1 may sell those BOPREAL against cable to a third party's account abroad (4.8.3; 4.3.2.3), for example the parent's account, provided the account is not in a FATF non compliant jurisdiction.

Which series. The BOPREAL instrument was first announced for importers by Com. A 7918 (13 December 2023): maximum term to 31 October 2027, subscription in pesos at the Com. A 3500 reference rate, payment in US dollars, interest up to 5% a year. BOPREAL Series 4 was announced by Com. A 8233 (30 April 2025) for companies within points 4.4, 4.5 and 4.6 (dividends) and for overdue related party debts: maximum term to 31 October 2028; subscription in pesos at the Com. A 3500 reference rate of the auction date or the previous business day; payment in US dollars at maturity or through early redemption options settled in dollar linked pesos; interest of up to 3% a year on a 30/360 basis, payable quarterly or half yearly in US dollars; secondary market trading to be defined in each auction notice. The actual coupon, maturity, strips and tradability of each auction, and whether Series 4 subscriptions are still open in October 2026, are set in auction notices that are not in the sources (unconfirmed). Which series were offered for dividends under Com. A 7999 in 2024 is also not in the sources (unconfirmed).

Financial entities. Banks that distribute profits under the BCRA rules on distribution of results must offer each non resident shareholder the option to receive its dividend in a single cash instalment applied directly to a primary BOPREAL subscription; those bonds cannot be sold for dollars or moved abroad for 30 and 60 days (two thirds and one third) (Com. A 7997 of 30 April 2024; Com. A 8235 of 30 April 2025, point 7.4 of that text). This page does not cover bank dividends further.

8. The external assets and liabilities survey

Point 1.9 requires everyone covered to file the BCRA "Relevamiento de activos y pasivos externos" even if no money went through the FX market. Point 3.4.3 makes compliance with the last filing already due a condition for paying dividends. The survey was created by Com. A 6401 (26 December 2017) and is now governed, for data from the first quarter of 2026, by Com. A 8304 (19 August 2025):

(Com. A 8304, replacing points 2 and 6 of the Annex to Com. A 6401.) A declarant who stops having external liabilities must still file for the period in which they were cancelled (Com. A 8304). Banks may not charge commissions for reporting reductions of those debts without FX access (Com. A 8304, new point 2 of the Annex to Com. A 6401, last paragraph).

The survey is filed only online through the BCRA service on the ARCA portal, with tax code ("clave fiscal") level 3, by electronic forms or bulk upload (BCRA service page). Individuals report liabilities only; they are exempt from reporting external assets (BCRA service page, citing Com. A 6594). A foreign shareholder's equity in the Argentine company is an external liability of the company ("participaciones de capital en la empresa declarante", Com. A 6401, Annex, point 7). How a declared but unpaid dividend must be entered (as equity or as a debt to the shareholder) is defined in the BCRA user manual, which was not downloaded (unconfirmed).

Step by step

Cost to do it (orientation). Government fees: none found in the FX rules for dividend access or BOPREAL subscription; IGJ filing fees for the approved statements are not in the sources (unconfirmed). Professional costs: external audit (mandatory in practice for the FX route) and bank fees, both freely agreed and not in the sources (unconfirmed). Capital: the company needs pesos for the gross dividend, since the 7% is deposited with ARCA and the rest is converted. Time: from year end, typically one to four months to audited statements and the meeting (Law 19.550 art. 234 sets four months for SAs); FX access can take place on the same day as the bank checks once documents are ready, plus any 30 day FDI or 90 day cross restriction wait.

1. Check the fiscal year start date. Point 3.4.4.1 depends on when the fiscal year started, not when it closed. Calendar year companies qualify from fiscal year 2025 (started 1 January 2025). A company with a 30 June year end qualifies only from the year started 1 July 2025, which closes 30 June 2026.
2. Close the books and get the audit. Prepare annual statements under the law and bylaws (Law 19.550 art. 68) and obtain an external audit report (FX point 3.4.1). Confirm there are no prior year losses to absorb (art. 71).
3. Compute distributable profit. Year's realised and liquid profit, less the legal reserve allocation (5% until 20% of capital, art. 70), less any accumulated losses, less other reserves the members decide. For pre 2025 years, keep the profits separated by fiscal year: the FX route and the tax treatment both depend on the year of origin.
4. Run the tax checks. Classify the dividend by year of origin (oldest first, ITL art. 193). Apply 7% to post 2017 profits. For pre 2018 profits: no 7% to the extent taxed at 35% (Reg. art. 119), and test the 35% equalisation tax (ITL art. 74; Reg. arts. 166 to 168). Check any treaty (usually no reduction of the 7%). Decide whether the company will deduct the personal assets tax it paid for the shareholder (Law 23.966, art. after 25).
5. Prepare the meeting. Directors' or managers' report explaining reserves and the dividend form (art. 66); documents at the registered office 15 days before (art. 67); notice (art. 237) or unanimous meeting; for an SRL, the form of decision in its contract or art. 159.
6. Approve the dividend in pesos. The resolution must state the peso amount for each shareholder; that is the ceiling of point 3.4.2. Record the fiscal year(s) of origin. File the approved statements with the registry within 15 days if required (art. 67).
7. Withhold and deposit the 7%. Withhold when the dividend is paid or made available (ITL art. 97; RG 739 arts. 4 and 5) and deposit it by the applicable due date, issuing the withholding certificate the foreign shareholder needs for its home tax credit (unconfirmed).
8. Update the survey. Make sure the last survey filing already due includes the foreign shareholder's equity and any dividend payable (FX point 3.4.3; Com. A 8304).
9. Choose the FX route. 2025 onwards profits: point 3.4.4.1. Older profits: point 3.4.4.4 (30% of new FDI, with the converting bank's certificate), BOPREAL (point 4.6.1), BCRA prior approval (point 1.8), or a decision to pay in pesos locally (see Example 2 for the consequences).
10. Check the 90 day window. Confirm that neither the company nor, through the group statement, its controllers and group companies did any of the point 3.16.3.1 operations in the last 90 days, and that the company did not give pesos to its controller or group companies (point 3.16.3.4). Plan the following 90 days so that no group company needs to sell bonds for dollars.
11. Sign the sworn statements and instruct the bank. Dividend ceiling statement (3.4.2); liquid foreign assets statement (3.16.2); cross restriction and group statements (3.16.3); for the FDI route, the capitalisation proof and certificate (3.4.4.4). The bank checks the fake invoice database and the inconsistent CUIT list (3.16.1, 3.16.4), sells the dollars against the company's peso account and wires them to the shareholder.
12. Keep the file. Statements, audit report, minutes, withholding certificate, survey receipts, FX tickets and sworn statements. Banks must have evidence that the operation is genuine and correctly classified (point 1.2 and point 5.3, as summarised on the exchange controls page).

Costs and timelines

Rates

Thresholds and limits

Deadlines and waiting periods

Timeline of norms

BCRA communications carry the BCRA issue date shown on each document. Their Boletín Oficial dates are not in the sources (unconfirmed).

Worked examples

All facts are hypothetical. The official FX rate on any given day is not in the sources; the examples use the 23 Oct 2026 dólar MEP rate of ARS 1,563.90 per US$ as a stand in for the official rate, which is a simplification.

Example 1. SRL owned by a US parent distributes ARS 500,000,000 from 2025 profits

Facts. Filial SRL has a calendar fiscal year. Its quotas are held 95% by US Parent Inc. and 5% by US Holdco LLC, both US residents (an SRL needs at least two partners). Capital: ARS 100,000,000 (US$ 63,943), below the art. 299(2) threshold. Legal reserve at 1 January 2025: zero. No accumulated losses. Audited annual statements for fiscal year 2025 (1 January to 31 December 2025) show a realised and liquid net profit of ARS 800,000,000 (US$ 511,542). The partners decide on 20 April 2026 to distribute ARS 500,000,000 (US$ 319,714) and to keep the rest as retained earnings. Equity at 31 December 2025 for personal assets tax: ARS 1,000,000,000 (US$ 639,427).

Step 1. Corporate law.

The dividend is within the distributable amount (Law 19.550 arts. 68, 70, 71). The decision follows the SRL contract or art. 159; because capital is below ARS 2,000,000,000, the four month meeting rule of art. 159, second paragraph, does not apply, but the partners still approve the statements (art. 69 makes that right non waivable).

Step 2. Income tax. Profits come from fiscal year 2025, so the equalisation tax does not apply (Law 27.430 art. 83). No treaty exists with the United States. Withholding at 7% (ITL art. 97):

Step 3. FX route. Fiscal year 2025 started on 1 January 2025, so point 3.4.4.1 applies; no prior approval. The ceiling of point 3.4.2 is ARS 500,000,000: the peso amount paid to non residents (ARS 465,000,000 converted plus ARS 35,000,000 of tax withheld on their behalf) equals the amount allocated. Note that point 3.4 refers to "accionistas" and the "asamblea de accionistas"; the consolidated text does not expressly mention SRL quotaholders or a partners' resolution (unconfirmed). Keep the partners' resolution in a form that mirrors a meeting minute.

Step 4. Survey. If Filial SRL's external assets and liabilities (mainly its foreign partners' equity) are below US$ 10 million at every quarter end of 2026, it is in the secondary sample and files one annual return for 2026 data within 90 days of 31 December 2026, that is by 31 March 2027 (Com. A 8304). For FX access on 30 April 2026, the bank checks the last filing already due. Under the rules for data up to Q4 2025, a company with external liabilities filed quarterly, 45 days after each quarter: the Q4 2025 return was due 14 February 2026 (31 December 2025 plus 45 days). That filing must be in order.

Step 5. Statements and access. On 30 April 2026 the managers sign the point 3.4.2 ceiling statement, the liquid foreign assets statement (point 3.16.2), the 90 day cross restriction statements and the group statement (points 3.16.3.1 to 3.16.3.4). The group must not trade securities for dollars until 29 July 2026 (30 April plus 90 days, point 3.16.3.2). The bank sells US$ 297,333.59 against ARS 465,000,000 and wires US$ 282,466.91 to US Parent Inc. and US$ 14,866.68 to US Holdco LLC.

Step 6. Personal assets tax. For 2025 the SRL pays 0.50% × ARS 1,000,000,000 = ARS 5,000,000 (US$ 3,197.14) as substitute taxpayer for both partners (Law 23.966, art. after 25; art. 22(h)). It may recover this from them (third paragraph of that article). If it deducts the amount from the dividend, the partners receive ARS 460,000,000, or US$ 294,136.45. Whether a deduction for the tax recovery changes the point 3.4.2 calculation (the gross dividend allocated is unchanged) has not been addressed by the BCRA (unconfirmed).

Bottom line. Of a ARS 500,000,000 dividend (US$ 319,714), the US partners receive US$ 297,334 (93%), or US$ 294,136 (92%) if the personal assets tax is recovered from the dividend. The 25% to 35% corporate income tax on the underlying profit was paid earlier and is not shown. Any US tax and foreign tax credit is outside this page.

Example 2. SA with legacy retained earnings: BOPREAL against CCL

Facts. Legacy SA has a calendar fiscal year and is owned 90% by Parent Inc. (United States) and 10% by Parent Sub LLC (United States). Its retained earnings at 31 December 2025 include profits of fiscal years 2016 and 2017 (before 2018) and 2022 to 2024. In November 2026 the shareholders' meeting approves a dividend of ARS 2,000,000,000 (US$ 1,278,854) out of retained earnings: by the oldest first rule, ARS 400,000,000 (US$ 255,771) comes from fiscal years 2016 and 2017, taxed at 35%, and ARS 1,600,000,000 (US$ 1,023,083) from fiscal years 2022 to 2024. Assume the pre 2018 accounting profits did not exceed the taxable income accumulated for the art. 74 test, so no equalisation tax arises. Legacy SA received no new foreign direct investment after 17 January 2020 and has no certificates under points 3.4.4.5 to 3.4.4.7.

Step 1. Tax (same for both routes).

If the pre 2018 accounting profits had exceeded accumulated taxable income, 35% of the excess would be withheld (ITL art. 74), and the order of the two withholdings would need to be settled (unconfirmed).

Step 2. Why point 3.4.4.1 is closed. All the profits come from fiscal years that started before 1 January 2025. Point 3.4.4.4 needs FDI converted since 17 January 2020, which Legacy SA does not have. Without BOPREAL, only BCRA prior approval remains (point 3.4, closing paragraph). The FX rules set no time limit or criteria for the BCRA's answer (unconfirmed).

Assumptions for the comparison (illustrative only, not market data): Com. A 3500 reference rate on the BOPREAL auction date = ARS 1,563.90; CCL rate = ARS 1,595.18 (2% above MEP); BOPREAL Series 4 secondary market price if sold at once = 95% of nominal value; coupon 3% (the maximum in Com. A 8233). None of these figures comes from a source (unconfirmed).

Route A: BOPREAL subscribed by the company (point 4.6.1).

1. The bank checks the audited statements, the survey, the point 3.16.1 to 3.16.4 statements, and the company's sworn statement that the dividend is pending and that it waives FX market access for that debt except through BOPREAL collections (4.6.1.4).
2. Subscription amount: up to the peso amount of dividends pending payment to non residents. This example uses the net ARS 1,888,000,000, since the 7% is owed to ARCA, not to the shareholders. Whether the gross dividend may be used instead is not stated (unconfirmed).
3. Nominal value: ARS 1,888,000,000 ÷ 1,563.90 = US$ 1,207,238.31 of BOPREAL, booked under concept code I09.
4. Option A1, hold to maturity. At maturity (no later than 31 October 2028), principal of US$ 1,207,238.31 is collected in a local account and transferred to the shareholders through a swap or arbitrage (points 3.4.4.2 and 4.8.1.3). Interest at up to 3% a year adds up to about US$ 72,434 over two years (US$ 1,207,238.31 × 3% × 2), before any adjustment for the actual coupon dates and day count (unconfirmed). Total up to about US$ 1,279,673, received over roughly two years, with BCRA credit risk.
5. Option A2, sell at once. The company sells the bonds against cable to the parents' accounts abroad (4.3.2.3; 4.8.3). At the assumed 95%: US$ 1,207,238.31 × 0.95 = US$ 1,146,876.40. The sale does not count for the company's 90 day statements up to the amount subscribed (4.8.2), so the company keeps its FX access for imports and debt.
6. Option A3, dividend in kind. The company could deliver the BOPREAL themselves to the shareholders as a dividend in kind. Tax: dividends in kind are valued at market value (ITL art. 49), and the company recognises the difference between market value and tax cost as taxable income (ITL art. 75). Whether the FX rules treat delivery of the bonds as the "payment" that the company undertook to make only through BOPREAL collections is not stated (unconfirmed). The directors' report must explain a non cash dividend (Law 19.550 art. 66(4)).

Route B: pay pesos in Argentina and let the parents use CCL.

1. Legacy SA credits ARS 1,888,000,000 to the parents' peso accounts in Argentina (after depositing the 7%). No FX market access by the company is involved, so point 3.4 is not used.
2. The parents buy Argentine securities with pesos and sell them for US dollars settled abroad, crediting their own foreign bank accounts (point 4.3.2.2). At the assumed CCL rate: ARS 1,888,000,000 ÷ 1,595.18 = US$ 1,183,566.97, before brokerage costs. CNV rules on minimum holding periods and on non residents' securities trades are not in the sources (unconfirmed).
3. Cost to the company. The company delivered pesos to persons with direct control over it. For the next 90 days, it cannot truthfully sign the point 3.16.3.4 statement, so any outflow through the FX market (imports, services, debt service) needs BCRA prior approval. If the payment is made on 16 November 2026, the window closes on 14 February 2027. The parents' securities trades may also be attributed to the group under points 3.16.3.1 and 3.16.3.3, which extends the problem to sister companies (unconfirmed).
4. Later repatriation. Peso dividends collected in Argentina since 1 September 2019 can also be turned into BOPREAL by the non resident itself, CPI adjusted (point 4.6.2), and repatriated only through BOPREAL collections (point 3.13.1.14). Funds from peso dividends do not qualify for the general portfolio repatriation route, which requires funds converted in the FX market from 21 April 2025 (point 3.13.1.13).

Comparison.

With these assumptions, CCL yields about US$ 36,690 more than an immediate BOPREAL sale but about US$ 23,671 less than the official rate, and it freezes the company's FX access for 90 days. If the company needs to pay imports or debt in that window, the BOPREAL route is safer. If BOPREAL trades closer to par, Route A2 can beat Route B. The figures move with the BOPREAL price, the CCL spread and the A 3500 rate, so rerun them on the day.

Variant: with new FDI. Had Parent Inc. contributed new capital of US$ 1,000,000 converted through the FX market after 17 January 2020, Legacy SA could transfer up to 30% of that amount, US$ 300,000 (ARS 469,170,000), of the legacy dividend without prior approval, at least 30 days after the last contribution, with the converting bank's certificate and proof of capitalisation (point 3.4.4.4). The rest would still need Route A, B or prior approval.

Practical traps

• Start date, not close date. Point 3.4.4.1 covers fiscal years started from 1 January 2025. Non calendar year ends shift the first eligible year into 2026.
• Annual statements only. Point 3.4.4.1 requires "estados contables anuales regulares y auditados". Interim dividends on special statements (lawful only for art. 299 companies, Law 19.550 art. 224) do not fit its wording (unconfirmed).
• Mixed years in one dividend. Tax law presumes the oldest profits are distributed first (ITL art. 193). The FX rule asks whether the distributable profits come from 2025 onwards statements. If the meeting does not say which year's profits it is distributing, the bank may treat the dividend as coming from legacy profits. State the year of origin in the resolution and make sure it is consistent with the tax ordering (unconfirmed).
• Legal reserve first. Unless the legal reserve is topped up, no profits can be distributed (art. 70, second paragraph). Losses absorbed against the reserve must be restored before the next dividend.
• The ceiling is in pesos. The approved peso amount caps all transfers (point 3.4.2). If the dividend is paid late, there is no inflation or FX adjustment of the ceiling for point 3.4 payments. The only CPI adjustment in the rules is for non residents' BOPREAL subscriptions under point 4.6.2.
• Peso payments to the parent poison FX access. Any delivery of pesos to a direct controller or group company (other than ordinary purchases of goods and services) blocks the company's FX access for 90 days (point 3.16.3.4). That includes paying a dividend in pesos locally and some intercompany peso loans.
• Group contamination. The 90 day statements cover direct and indirect operations, and the group statement lists controllers and group companies (points 3.16.3.1 to 3.16.3.4). One group company selling bonds for dollars can block the dividend of another.
• BOPREAL closes the door. Once a company subscribes BOPREAL under 4.6.1, it cannot later pay the same dividend through the FX market except with BOPREAL collections (4.6.1.4.iii).
• Withholding before the dollars. The 7% may be due when the dividend is made available, even if the remittance waits for BOPREAL maturity or prior approval (unconfirmed). Budget the pesos for it.
• Personal assets tax keeps running. The company pays 0.50% a year on the shareholders' equity value whether or not it pays dividends. Retaining profits increases the base.
• Capitalising trapped profits does not create FDI. The FDI repatriation and dividend routes count contributions "ingresados y liquidados" through the FX market (points 3.4.4.4 and 3.13.1.7). Capitalising retained earnings is not a conversion.
• Survey compliance. A missed survey filing blocks dividends (point 3.4.3) and BOPREAL subscriptions (point 4.6.1.2). The 2026 rules move small declarants to a single annual return due 90 days after year end (Com. A 8304).
• Deemed dividends. Management fees, loans or asset use by the foreign parent without business reasons can be taxed as dividends (ITL art. 50) and, if paid in pesos locally, can also trigger point 3.16.3.4.
• SRLs and branches. The FX text speaks of shareholders and shareholders' meetings. Confirm with the bank how it documents SRL partners' resolutions and branch remittances before the payment date (unconfirmed).

Recent changes

• 30 April 2024 (Com. A 7999). BOPREAL subscriptions for pending dividends (company) and for peso dividends already received by non residents since 1 September 2019 (non resident, CPI adjusted). Sales of those BOPREAL excluded from the 90 day statements.
• 10 February 2025 (Com. A 8191). Amendments to point 4.6 (per the correlation table of the consolidated text).
• 11 April 2025 (Com. A 8226, effective 14 April 2025). New route for dividends from fiscal years started on or after 1 January 2025, without prior approval.
• 30 April 2025 (Com. A 8233). BOPREAL Series 4, open to dividend debtors, maximum term 31 October 2028, interest up to 3%.
• 30 April 2025 (Com. A 8234 and A 8235). BOPREAL for overdue related party debts; banks' non resident shareholders may take dividends into BOPREAL.
• 19 June 2025 (Com. A 8261, effective 23 June 2025). Former point 3.16.1 (advance reporting of FX operations) removed.
• 19 August 2025 (Com. A 8304). New survey thresholds and deadlines from Q1 2026 data: US$ 10 million main sample threshold; 90 day annual return for the secondary sample.
• 25 August 2025 and 14 September 2026 (Com. A 8307 and A 8481). Updated consolidated texts. No CAMEX communication was found between A 8482 (16 September 2026) and A 8497 (22 October 2026).

Pending changes

• Legacy dividends. No BCRA rule in the sources schedules the release of pre 2025 profits from prior approval. BOPREAL and the 30% FDI route remain the tools.
• BOPREAL availability. Whether new BOPREAL auctions for dividends are being held in October 2026, and on what terms (unconfirmed).
• Branches and SRLs under point 3.4 (unconfirmed).
• Withholding system and timing for the 7% (RG 739 or a later ARCA rule; moment of payment for trapped dividends) (unconfirmed).
• Companies' foreign asset purchases still need prior approval (point 3.10, see the exchange controls page). This affects whether a company can hold dollars abroad before paying a dividend; the dividend route itself does not need it.
• Income tax extension. Questions about the overall life of the income tax law are covered on the corporate income tax page.

FAQ

1. Can our Argentine subsidiary pay its 2025 profits to us without BCRA approval? Yes, if the fiscal year started on or after 1 January 2025, the annual statements are audited, the meeting approved the peso amount, the survey is up to date, and the company signs the point 3.16 statements (points 3.4.1 to 3.4.4.1). Calendar year 2025 profits qualify from the 2026 meeting onwards.

2. What tax do we pay on the dividend? The company withholds 7% as a final tax (ITL art. 97). No treaty with the United States exists; other treaties usually cap dividends at 10% or 15%, so they rarely lower the 7%. The 35% equalisation tax only concerns profits from years started before 1 January 2018 (ITL art. 74; Law 27.430 art. 83).

3. Are dividends from very old profits taxed? Profits accumulated before the first fiscal year starting from 1 January 2018 that were taxed at 35% bear no 7% (ITL art. 193; Decree 862/2019 art. 119), but they may face the 35% equalisation tax if accounting profit exceeded taxable income. Distributions are presumed to come from the oldest profits first.

4. How do we get 2024 profits out? Options: up to 30% of new FDI converted since 17 January 2020 (point 3.4.4.4); BOPREAL subscribed for the pending dividend (point 4.6.1); BCRA prior approval; or a peso payment in Argentina with the consequences described in Example 2.

5. Is "contado con liquidación" legal? The FX rules regulate how non individuals settle securities trades in foreign currency (point 4.3.2) and impose the 90 day cross restriction on anyone who accesses the FX market (point 3.16.3). A non resident shareholder that receives pesos and sells securities for dollars abroad is not accessing the FX market. The cost falls on the paying company, which cannot access the FX market for 90 days after giving pesos to its controller (point 3.16.3.4). CNV trading rules also apply (unconfirmed).

6. Does a BOPREAL subscription settle the dividend? It gives the company a US dollar bond for the peso amount of the pending dividend. The company then pays the shareholder with the bond's dollar collections (point 4.8.1.3), or sells the bonds against cable to the shareholder's account (point 4.3.2.3). It cannot use the official FX market for that dividend any more (point 4.6.1.4.iii).

7. Who pays personal assets tax on our shares? The Argentine company, at 0.50% of the equity value of the shares at 31 December, as a final payment; it may recover the amount from the shareholder (Law 23.966, article after art. 25).

8. Does an SRL need an audit to pay a dividend abroad? The Companies Law does not always require one, but the FX rule does: profits must come from audited statements (points 3.4.1 and 3.4.4.1).

9. Can a branch remit profits to its head office? For tax, yes, with a 7% additional tax on remittance (ITL art. 73(b)). For FX, point 3.4 refers to shareholders and meetings and does not mention branches; check with the bank or seek BCRA guidance (unconfirmed).

10. What happens if we miss a survey filing? The bank cannot give access for the dividend until the last filing already due is in order (point 3.4.3). From 2026 data, smaller declarants file one annual return within 90 days of year end; larger ones file quarterly within 45 days (Com. A 8304).

11. Can we pay an interim dividend from 2026 profits? Only companies under permanent state supervision (art. 299) may pay interim dividends (Law 19.550 art. 224). Even then, the FX route of point 3.4.4.1 refers to annual audited statements, so a remittance of an interim dividend through the official market is uncertain (unconfirmed).

12. When must the company sign the 90 day statements, and what do they cover? On each FX access. They look back 90 days and forward 90 days for securities trades, CEDEARs, transfers of securities abroad and peso for foreign asset swaps, and back 90 days for peso transfers to controllers and group companies (points 3.16.3.1 to 3.16.3.4).

Primary sources

• BCRA, consolidated text "Exterior y Cambios" at 14 September 2026, last communication A 8481, points 1.2, 1.3, 1.8, 1.9, 3.4, 3.13.1.13, 3.13.1.14, 3.16, 4.3, 4.6, 4.8 and correlat
• Com. A 6401 (26 Dec 2017), survey
• Com. A 6795, survey (amended Com. A 6401)
• Com. A 7918 (13 Dec 2023), BOPREAL
• Com. A 7925 (22 Dec 2023)
• Com. A 7997 (30 Apr 2024)
• Com. A 7999 (30 Apr 2024), BOPREAL for dividends
• Com. A 8191 (10 Feb 2025)
• Com. A 8226 (11 Apr 2025), point 6
• Com. A 8233 (30 Apr 2025), BOPREAL Series 4
• Com. A 8234 and A 8235 (30 Apr 2025)
• Com. A 8261 (19 Jun 2025)
• Com. A 8304 (19 Aug 2025), survey from 2026
• Com. A 8307 (25 Aug 2025)
• BCRA service page "Informar activos y pasivos externos"
• Income Tax Law, t.o. 2019, Decree 824/2019, BO 6 Dec 2019, updated text, arts. 48, 49, 50, 73, 74, 75, 97, 193
• Decree 862/2019, ITL regulation, BO 9 Dec 2019, updated text, arts. 119, 166, 167, 168
• Law 27.430, BO 29 Dec 2017, updated text, arts. 69, 83, 86
• RG 739/1999 (AFIP), BO 20 Dec 1999, updated text, arts. 1 to 12
• Law 23.966, Title VI (Personal Assets Tax), updated text, art. 22(h) and article after art. 25
• Law 19.550, t.o. Decree 841/1984, updated text, arts. 66 to 71, 118, 120, 159, 160, 224, 225, 234, 235, 237, 261, 299 (with note on Res. MJ 10/2024)

Related pages

• FX and capital controls: current rules
• Exchange controls: access to the official FX market, dividends and capital repatriation
• BOPREAL: the BCRA bonds for importers and dividend arrears
• Export proceeds: repatriation and settlement rules for Argentine exporters
• Foreign debt registration and access to the FX market for loans
• Argentina's exchange rate regimes from Convertibility to 2026
• Paying for imports and foreign services under Argentina's FX rules
• Dólar MEP and CCL: legal bond swap exchange in Argentina
• Live dólar hoy: MEP, CCL, blue and the brecha