Buenos Aires province seeks to apply a 9% Gross Income Tax (IIBB) to financial entities that conduct operations with bonds or other debt instruments issued by the national government. It will do so by amending the Buenos Aires Tax Code, removing the exemption that was in effect for these types of operations. The initiative was presented to the Buenos Aires Legislature for debate. Article 207, subsection c) of the Tax Code established the exemption from IIBB for "any operation on titles, letters, bonds, obligations and other papers issued" by the Nation, the provinces, the Autonomous City of Buenos Aires and the municipalities, as well as the income generated by them. The project now adds a clause stating that "financial entities are also not exempt from the exemption" in operations with titles "issued and/or to be issued in the future by the Nation, its income and/or stabilization or monetary adjustment corrections". The exemption remains for the debt issuances of the province of Buenos Aires itself or of any other sub-sovereign jurisdiction, such as other provinces, CABA or municipalities, since these were "omitted" from the amendment aimed at the Nation. The proposed amendment affects financial entities, but the tax exemption does not extend to stockbrokers and intermediaries.
