In depth
1. General considerations
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 transactions) for the following activities:
- Acquisition of foreign currency — including travel checks — for saving 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, 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 (Acquisitions made using websites and any other type of operations that imply a remote acquisition of foreign currency are also included).
- Exchange of foreign currency made by Argentine financial entities for payment, in the name of a local party, of services rendered by nonresident 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 in Argentina.
- Acquisition of land, air, and water passenger transportation services in which it is necessary to acquire foreign currency for payment for destinations outside of Argentina.
2. Subjects liable for the collection regime at a rate of 30%
Taxpayers liable for the collection regime at a rate of 30% are individuals or legal entities, undivided estates, and other taxpayers who are residents in the country and who (i) carry out transactions covered by the Tax mentioned in item 1. a), b), c), d) and e) for any amount, or (ii) import "sumptuous" goods listed in Section 13 bis of Decree 99/2019.
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.
If intermediaries intervene in such payments, they must apply the corresponding collection.
4. Characteristics of the collection
The collected tax rate will be 30% on the amounts in Argentine currency (ARS) of each operation reached by the Tax.
The collection will be computable in the annual tax return of the income tax (IT) when collected for taxpayers subject to IT, corresponding to the fiscal year in which the collection is made. The collection will be computable in the annual tax return of the personal assets tax (PAT) when collected for taxpayers not subject to IT, corresponding to the fiscal year in which the collection is made.
If the collections generate a tax credit, it will be applied for the cancellation of other federal tax obligations, or reimbursement may be requested.
If subjects who are not taxpayers of the IT or PAT paid the collection, they may request reimbursement of the collection.
5. Effective date
The Resolution will be applicable to operations carried out as of 13 December 2023.
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