Argentine Government Releases First Details of Its Economic Plan
Following the announcement, the Minister of Economy made, a series of regulations were published today, detailing the measures announced.
Today's Official Gazette (December 13, 2023) included the first regulations supplementing the announcements made yesterday regarding economic, tax, and foreign exchange matters. The measures include, among others:
- Decree 28/2023. Incremental Export Program
The Export Increase Program is renewed indefinitely. The Decree states that exporters of goods and services must repatriate and sell at the official exchange rate 80% of the proceeds of their exports through the Foreign Exchange Market and must carry out purchase and sale transactions with securities acquired with settlement in foreign currency and sold with settlement in local currency (Inbound Blue-Chip Swap Transactions) for the remaining 20%. The operations this Program includes and its effects on export duties can be consulted here.
- Decree 29/2023. Tax for an Inclusive and Supportive Argentina (PAIS)
The Decree amended the tax rate of the PAIS tax applicable to the acquisition of foreign currency to pay for overall import of goods and for paying shipping, freight, and other transportation services when the codes for foreign exchange purposes are S04, S30, and S31. The new tax rate was raised from 7% to 17.5%.
- General Resolution 5463 (AFIP). Income Tax. Tax on Personal Property. Advance payment regime. General Resolution 4815 and its amendments
Through General Resolution 5463/2023 (published December 13, 2023), the Federal Tax Authority (AFIP) reduced the advanced payments on Income Tax and Personal Assets Tax when applicable, as follows:
|
Taxable event |
PAIS Tax |
A. P. |
|
purchasing foreign currency for saving purposes made by Argentinian residents |
30% |
30% |
|
paying goods or services acquired abroad, as long as the payment is made through charge, credit, or debit card |
30% |
30% |
|
paying services provided by a non-Argentinian resident, if the payment is made through charge, credit, or debit card (except for digital services) |
30% |
30% |
|
paying digital services rendered by a non-Argentinian resident, if the payment is made through charge, credit, or debit card |
8% |
30% |
|
acquiring services abroad through travel and tourism agencies in Argentina |
30% |
30% |
|
Acquiring passenger transportation services (by any means of transport) to go abroad |
30% |
30% |
|
paying imports of ‘luxury’ goods |
30% |
30% |
|
Acquiring foreign currency through the FX Market to pay services (except freight and transportation services) |
25% |
0% |
- General Resolution 5464 (AFIP). Inclusive and Supportive Argentina (PAIS). Payment on account. General Resolution 5393. Its modification
AFIP adjusted the advanced payment on the PAIS tax charged when declaring imports of non ‘luxury’ goods to be 16.625%. The import transactions subject to this advanced payment can be consulted here.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.