Classification
Repo transactions in Treasury securities give rise to capital income calculated as the difference between the sale price agreed with the financial institution and the purchase price.
Taxation and withholdings
If the repo-acquired sucirities are Letras del Tesoro, the income raised receives the same tax treatment as Letras del Tesoro.
If the repo involves Bonos del Estado or Obligaciones del Estado, the income raised from the repo will be taxed as per the rules governing transfer or redemption of Bonos del estado and Obligaciones del Estado.