Banco Macro S.A.(BMA) - 2023 Q4 - Annual Report

Market Risk - Foreign exchange market risk increased significantly in 2023, with the maximum risk rising to 32,338.5 million Pesos from 8,930.8 million Pesos in 2022, a variation of 23,407.7 million Pesos[919] - Securities market risk also saw a substantial increase, with the maximum risk reaching 12,808.2 million Pesos in 2022 compared to 3,140.2 million Pesos in 2021, a variation of 9,668.0 million Pesos[919] - The average foreign exchange market risk in 2023 was 15,815.1 million Pesos, a significant increase from 4,977.8 million Pesos in 2022[919] - The average securities market risk in 2022 was 5,005.4 million Pesos, up from 1,633.2 million Pesos in 2021[919] Tax Regulations on Dividends and Investments - Dividend distributions for profits obtained after January 1, 2018, are subject to a 7% income tax withholding for Argentine resident individuals and non-residents[931] - The Equalization Tax imposes a 35% withholding tax on dividends if distributions exceed the "net accumulated taxable income" of the previous fiscal period[931] - Dividend distributions and the sale or exchange of Class B shares or ADSs are exempt from value-added tax[936] - Projects with investments exceeding $500 million can access extended benefits, allowing up to 40$34,703,523.08 is taxed at 25%, while income over $347,035,230.79 is taxed at 35%[932] - Starting in 2018, Argentine resident individuals and undivided estates are exempt from capital gains tax on the sale of shares traded on CNV-authorized stock markets[932] - Free transmission of Class B shares or ADSs in Buenos Aires is exempt for transfers up to Ps.2,038,752, increasing to Ps.8,488,486 for transfers among parents, children, and spouses[914] Taxes on Financial Transactions - The general tax rate on debits and credits in Argentine bank accounts is 0.6%, with increased rates of 1.2% and reduced rates of 0.075%[937] - 33% of the tax paid at the general 0.6% rate can be considered as a tax credit against specific taxes, while 33% of the tax paid at the 1.2% rate can also be used as a credit[937] - The tax on debits and credits (TDC) applies until December 31, 2027, as extended by Law 27.702[937] - A 30% federal tax applies to certain transactions for the purchase of foreign currency for saving purposes or without a specific destination, effective from December 23, 2019[939] - A 30% income tax collection applies to operations subject to PAIS Tax for Argentine residents, as per General Resolution (AFIP) N° 4815/2020[939] Other Taxes and Exemptions - The Personal Assets Tax rate for holding company shares is 0.50% of the proportional net worth value as of December 31st of each year[935] - A court tax of 3.0% is imposed on claims brought before federal courts in Argentina or courts in the City of Buenos Aires[943] - Gross turnover tax rates vary by province and activity type, with exemptions for transactions involving shares and dividends in the City of Buenos Aires[940]