The Central Bank of Argentina published updated information submitted by the Argentine Banks Association (ADEBA) on how Argentina’s provinces apply the Gross Receipts Tax (Ingresos Brutos, IIBB) to financial institutions, including differences in tax rates and the tax base used across jurisdictions. The ADEBA report sets out province-by-province variations based on parameters such as the applicable rate and the taxable base. It notes that, up to 2003, all provinces calculated the base using a “spread” approach based on the difference between income statement credits and passive interest and indexation items, adjusted for their enforceability in the relevant fiscal period. In 2004, the Autonomous City of Buenos Aires shifted to a broader base defined as total income statement credits without deductions, which ADEBA says implied a very significant increase in the burden and was later adopted by most provinces, with San Luis and Santiago del Estero identified as the only provinces still using the spread base. The report also highlights higher headline rates versus 2004, citing examples including the Autonomous City of Buenos Aires rising from 5% to 8%, the Province of Buenos Aires from 6% to 9%, Córdoba from 3.5% to 9%, and Mendoza from 4% to 7%, and it identifies which provinces include government securities and mortgage loans in the taxable base, which ADEBA argues increases the cost of public credit and home lending.
Central Bank of Argentina 2025-07-03
Central Bank of Argentina releases ADEBA update on provincial Gross Receipts Tax treatment for financial institutions
The Central Bank of Argentina released data from the Argentine Banks Association on the Gross Receipts Tax for financial institutions, highlighting provincial variations in rates and bases. Since 2004, most provinces have broadened the tax base, increasing the tax burden, except San Luis and Santiago del Estero, which maintain the previous "spread" base. The report also notes increased rates and the inclusion of government securities and mortgage loans in the taxable base, raising concerns about public credit and home lending costs.