Gross Income Tax: Online Platforms in San Juan

Resolution 1148 of the General Revenue Department was published in the Official Gazette of the Province of San Juan on September 6, 2024. This Resolution establishes the entry into force of the gross income tax as of November 1, 2024, for the commercialization of services provided by individuals domiciled, located, or established abroad when such services are economically used in the province.

The Resolution considers activities to be subject to the tax when the service is provided to individuals and legal persons residing, domiciled, or located within the province or when the use of the services is verified by individuals residing, domiciled, or located in the Province.

The services subject to the tax include:

• Online subscription services, including all types of audiovisual entertainment (movies, series, music, games, videos, online television broadcasts, or similar content) transmitted from the internet to televisions, computers, mobile devices, and other devices.
• Intermediation in the provision of services and gambling activities conducted and/or exploited through any means, device, platform, or technological application, including: online roulette, blackjack, baccarat, punto banco, sports betting, among many others, regardless of where the games are organized, the location of servers and/or digital platform and/or the mobile network, or where such gambling activities are offered.

To pay the tax, the amounts paid for the provision of these services will be subject to withholding as a single and final payment. Thus, the actions of withholding agents will be subject to certain indicators, such as the billing address of the customer, holder, and/or user of the credit, debit, or payment card; the IP address of the electronic devices used by the user or consumer of such services; or the code identifying the mobile phone’s SIM card where the entertainment is reproduced and/or retransmitted.

The regulation also considers taxable the commercialization of goods or services through means or technology that allow remote transactions when the purchaser’s domicile is in the Province of San Juan (taking into account the place of delivery of the goods or provision of services).