Netherlands - Argentina Treaty Development - Signed

On 27 December 1996, Argentina and the Netherlands signed a comprehensive double taxation treaty and protocol, covering taxes on income and capital.

Under the treaty, the maximum withholding on dividends is 15% in general, but reduced to 10% if the recipient is a company which holds directly at least 25% of the capital of the paying company. In practice, these rates apply only to Netherlands-source dividends because Argentine-source dividends paid to nonresidents are exempt from tax under Argentine domestic law.

The maximum withholding tax on interest is 12%, but an exemption applies to interest paid or received by the central or local government or the central bank of either state (or agencies thereof) and to interest paid on certain loans guaranteed or secured by a state or a government agency (including financial institutions) or sales on credit of industrial, commercial or scientific equipment. In practice, this rate applies only to Argentine-source interest because the