{
  "url": "https://openlegislation.uk/double-taxation-relief-taxes-on-incomeargentina-order-1997/note",
  "json_url": "https://openlegislation.uk/double-taxation-relief-taxes-on-incomeargentina-order-1997/note.json",
  "legislation": "uksi/1997/1777",
  "legislation_title": "The Double Taxation Relief (Taxes on Income)(Argentina) Order 1997",
  "legislation_url": "https://openlegislation.uk/double-taxation-relief-taxes-on-incomeargentina-order-1997",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nThe Convention with Argentina and amending Protocol are set out in the Schedule to this Order.\nThe Convention provides for business profits not arising through a permanent establishment to be taxed, in general, only in the country of the taxpayer’s residence. Profits attributable to a permanent establishment may be taxed in the country in which the permanent establishment is situated. The profits of insurance or reinsurance enterprises may also be taxed in the other country, at a rate not exceeding 2.5 per cent. of the gross amount of the premium, if the insured property is situated in that country or, as appropriate, the insured person resides there (Articles 5 and 7).\nIncome and gains from immovable property may be taxed in the country in which the property is situated (Articles 6 and 13).\nProfits and gains from international shipping and air transport are generally to be taxed only in the residence state of the operator (Articles 8 and 13).\nThe Convention includes rules for determining taxable profits when a company in one country is related to a company in the other (Article 9).\nThe rate of tax imposed in the country of source on dividends derived by a resident of the other country shall not, in general, exceed 10 per cent. of the gross amount if the recipient is a company controlling, directly or indirectly, 25 per cent. of the voting power in the company paying the dividends. In other cases, the rate of tax imposed in the country of source shall not exceed 15 per cent. of the gross amount of the dividends (Article 10).\nThe rate of tax imposed in the country of source on interest derived by a resident of the other country shall not, in general, exceed 12 per cent. of the gross amount of the interest flowing to the other country. Certain categories of interest will be exempt from tax in the source state (Article 11).\nThe rate of tax imposed in the country of source on royalties flowing to the other country shall not, in general, exceed 3 per cent. of the gross amount of royalties paid for the use of, or the right to use, news, 5 per cent. of the gross amount in respect of copyright of literary or artistic work, 10 per cent. of the gross amount in respect of patents, trade marks, industrial or scientific equipment and the rendering of technical assistance, and 15 per cent. of the gross amount in other cases (Article 12).\nEach country may generally tax capital gains in accordance with its domestic law. In the case of gains from share disposals, the rate of tax imposed in the country of source shall not exceed 10 per cent. if the recipient of the gain controls, directly or indirectly, 25 per cent. of the voting power in the company in respect of which the share disposal is made, and 15 per cent. in other cases. Gains arising from the disposal of the assets of a permanent establishment or a fixed base which the taxpayer has in the other country may be taxed in that other country (Article 13).\nThe earnings of temporary business visitors and some other individuals are, subject to certain conditions, to be taxed only in the country of the taxpayer’s residence (Articles 14 and 15). Fees received by a resident of one country in his capacity as a director of a company resident in the other country may be taxed in that other country (Article 16). Income derived from the activities of artistes and sportsmen may be taxed in the country in which those activities are performed (Article 17).\nOccupational pensions and annuities are to be taxed only in the recipient’s country of residence (Article 18) while government service remuneration is normally to be taxed only by the paying Government (Article 19). There are separate provisions for diplomatic or consular officials (Article 28). Certain payments made to visiting students and business apprentices are generally to be exempt from tax in the country visited (Article 20).\nOther income not specified in the Convention will generally be taxed only by the country of which the beneficial owner is a resident (Article 21).\nThe Capital Article (Article 22) reflects the existence of a capital tax in Argentina and provides that capital represented by immovable property may be taxed in the country in which the property is situated. Capital represented by movable property is normally to be taxed only in the country of residence.\nWhere income continues to be taxable in both countries, credit will be given in the taxpayer’s country of residence for tax imposed by the other country. The credit to be given in the United Kingdom for tax imposed in Argentina includes credit for tax spared under certain provisions of Argentinian law. In the case of dividends, the United Kingdom will give credit for the underlying tax paid in Argentina where the shareholder is a United Kingdom company which controls at least 10 per cent. of the voting power in the company paying the dividends (Article 23).\nThere are provisions whereby the United Kingdom ensures that it retains its right to tax a United Kingdom resident member of an Argentine resident partnership (Article 4), which limit the relief available in certain circumstances (Article 24), and which allow the Convention to be extended, by bilateral agreement, to territories for whose international relations the Government of the United Kingdom is responsible (Article 29).\nThere are also provisions safeguarding nationals and enterprises of one country against discriminatory taxation in the other country (Article 25), for consultation to resolve difficulties in the application or interpretation of the Convention (Article 26), and for exchanges of information between the taxation authorities of the two countries (Article 27).\nAn amending Protocol, to enter into force concurrently with the Convention, clarifies the interaction between certain of its provisions and Argentina’s domestic law. It amends Article 12 by stipulating that only the author himself or his descendants may benefit from the 5 per cent. limitation on withholding taxes on royalties paid in respect of copyright of literary or artistic work; and by allowing for the deduction of relevant expenses from the quantum of technical assistance royalties. The Protocol also stipulates that if Argentina subsequently agrees in a Convention with any member of the Organisation for Economic Co-operation and Development, other than the United Kingdom, to apply lower rates of taxes to business profits, insurance or reinsurance premiums, dividends, interest, royalties, payments for technical assistance or capital gains, or to levy those taxes on a narrower taxable base, the lower rates or narrower taxable base shall apply to this Convention.\nThe Convention will enter into force thirty days after the date on which the instruments of ratification are exchanged. It will take effect in the United Kingdom in respect of corporation tax from 1st April in the calendar year next following that in which the instruments of ratification are exchanged; and from 6th April that year for income tax and capital gains tax.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1997/1777/note",
    "retrieved_at": "2026-10-29T12:05:03.544555+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}