The Argentine government has enacted a new export tax (Decree No. 793/2018) that went into effect 1 January 2019 and will be applicable until December 2020.
The 12% customs duty in this decree states that it will be enacted on services but they will be treated as exported goods as long are the services are rendered in Argentina but used abroad. This is an unprecedented tax and now companies must be aware of the specifics to remain compliant.
Specifications of the tax
The regulation states that individuals and legal entities must submit the affidavit using the service "Sistema de Cuentas Tributarias" on AFIP´s website. The affidavit is made using an electronic "E" type invoice issued every month. The affidavit must be submitted from 10-15 business days after the monthly period being reported. The tax is due for payment within 15 days after the registration with an additional 45 days granted to exporters with services calculated to be less than US $ 2,000,000 in the proceeding calendar year.
Due to the many changes in the Argentine government, this tax has been enacted in help cut the deficit and to regain the confidence of investors. The government estimates that they will be able to collect USD 700m to 1bln in 2019 using the new export tax. It is also estimated that this tax will affect over 1,000 companies across sectors like software, consulting and knowledge- based service businesses.
We can help
Businesses in Argentina will see an increase in their expenses due to this new export tax. This could cause them to transfer the costs along to their customers. Companies, especially multinationals, that provide services that are exported will need assistance in understanding this new regulation as well as filling the correct forms and paying the taxes on time. TMF Argentina has the accounting and tax professionals that understand the local laws and market. They will work with you on reporting, tax compliance and any other financial services you need for your business to succeed in Argentina.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.