A delay in the approval of Argentina's capital markets reform bill, which would cut red tape for companies to issue debt in the country while reducing the tax burden on certain closed-end funds known as FCIs, has made the funds less attractive to taxpayers looking to take advantage of a tax amnesty on foreign income repatriated before Dec. 31, El Cronista reported Dec. 19.

The bill, which was submitted to Congress by the government in November, is not likely to be passed before the end of 2016, as debate about possible income tax reform has taken priority, the report said, citing various local fund managers.

Fund managers had expected the bill, which would make closed-end funds that invest in real estate and infrastructure projects exempt from income tax, would promote investment in such funds before Dec. 31, which is the deadline for taxpayers to repatriate funds without paying a 10% penalty.

However, with just days to go until the end of the year, fund managers do not expect the capital markets bill will be approved in time to take advantage of the deadline, the report said. As a result, taxpayers still planning to repatriate funds before the end of the year will have to choose another investment option, the fund managers said.