Argentina: Increase from 35% to 45% the collection regime on certain operations reached by the Tax on the Acquisition of Foreign Currency

In brief

  • On 14 July 2022, Resolution No. 5232/2022 ("Resolution") was published in the Official Gazette, by which the Federal Tax Authority (FTA) increased from 35% to 45% the collection regime applicable to the acquisition of goods or services abroad reached by the Tax on the Acquisition of Foreign Currency ("Tax"). The acquisition of foreign currency reached by the Tax for savings purposes will continue to be subject to the collection regime at the rate of 35%.
  • The Tax is applicable to Argentine tax residents at rates of 30% or 8%, depending on the transactions.
  • The collections will be computable in the annual tax return of the Income Tax (IT) or Personal Assets Tax (PAT), corresponding to the fiscal year in which the payments were made. Otherwise, they can be applied for the cancellation of other federal tax obligations or reimbursed by the FTA.
  • The Resolution will be applicable to operations carried out as of 14 July 2022.

Contents

1. General considerations

On 14 July 2022, the Resolution was published in the Official Gazette. Issued by the FTA, the Resolution increased from 35% to 45% the collection regime set forth on 16 September 2020 by means of Resolution No. 4815/2020 and applicable to the acquisition of goods or services abroad reached by the Tax.

The acquisition of foreign currency reached by the Tax for savings purposes will continue to be subject to the 35% rate.


The Tax was created by Law No. 27,541 of Social Solidarity and Productive Reactivation in the framework of Public Emergency (“Emergency Law”) back in December 2019 and is applicable to Argentine tax residents (at rates of 30% or 8%, depending on the transaction) for the following activities: 

  • Acquisition of foreign currency, including travel checks, for savings purposes or without any specific purpose related to the payment of obligations under the terms of the existing FX regulations made by Argentine residents
  • Exchange of foreign currency made by Argentine financial entities in the name of a local party, destined to pay for the acquisition of goods or services rendered abroad, canceled using a credit, purchase or debit card, or any other payment method determined by the regulations, including extractions of cash, made abroad, as well as acquisitions made using websites and any other type of operations that imply a remote acquisition of the foreign currency
  • Exchange of foreign currency made by Argentine financial entities destined to the payment, in the name of a local party, of services rendered by non-resident parties, canceled by credit, purchase or debit cards, as well as any other payment method determined by the regulations
  • Acquisition of services abroad using travel and tourism agencies of Argentina 
  • Acquisition of land, air and water passenger transportation services for destinations outside of Argentina and where it is necessary to acquire foreign currency for its payment

2. Subjects liable for collection

  • Subjects liable for collection will be individuals or legal entities, undivided successions and other responsible subjects that are Argentine tax residents and carry out any of the operations reached by the Tax.
  • If the subject is included in the Simplified Regime for Small Taxpayers and is not responsible for the IT, the collected payments will be considered as payments on account of the PAT. In all other cases, the collected payments will be considered as payments on account of the IT.

3. Collection agents

  • The subjects designated by the Emergency Law, such as financial entities, travel and tourism agencies, and transport companies in Argentina, must act as collection agents. In the event that intermediaries intervene in such payments, they must apply the corresponding collection.

4. Characteristics of the collection

  • The collected tax rate will be 45% or 35%, as it may correspond on the amounts in Argentine pesos of each operation reached by the Tax.
  • The collections will be computable in the annual tax return of the IT or the PAT corresponding to the fiscal year in which the payments were made.
  • If the collections generate a tax credit, it will be applied for the cancellation of other federal tax obligations.
  • If subjects who are not liable for the IT or the PAT paid the collections, they may request the reimbursement of the payments made once the calendar year is concluded.

5. Effective date

  • The Resolution will be applicable to operations carried out as of 14 July 2022.

 

See Spanish version here.


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