globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

22 September 2020

Argentina establishes new reverse withholding regime applicable to certain purchases of foreign currency, and goods and services from abroad

The Argentine Federal Tax Authorities (AFIP) have issued General Resolution No. 4815/2020 (published in the Official Gazette on 16 September 2020), which imposes a 35% reverse withholding tax on purchases of foreign currency without a specific purpose and certain goods and services outside of Argentina by Argentine residents.

General Resolution

The tax applies to the following transactions performed since 16 September 2020:

  • Purchases of foreign currency (i.e., “constitution of foreign assets”) without a specific purpose by Argentine residents under the limitations imposed by the Central Bank
  • Purchases of goods or services from abroad, including purchases by Argentine residents when they are abroad, through credit, debit or purchase, including cash withdrawals made outside Argentina
  • Purchases made online through portals or virtual websites in foreign currency
  • Purchases of services rendered abroad through Argentine travel agencies, including purchases paid in cash for which access to the foreign exchange market to buy foreign currency is needed to pay the foreign service provider
  • Purchases of ground, air and water passenger services with destinations outside Argentina (except for ground passenger services to neighboring countries), including purchases of those services paid in cash for which access to the foreign exchange market to buy foreign currency is needed to pay the foreign service provider

Both Argentine individuals and entities are subject to the reverse withholding tax. The 35% rate applies to taxable purchases, except purchases of health benefits, medicines, books, learning platforms and software for educational purposes, among others.

Argentine financial institutions, credit card issuers, travel agencies and transport companies will act as collection agents of the reverse withholding tax, which will be withheld at the time of payment for the purchases.

The tax will be considered, depending on the tax status of the Argentine resident, as a credit against the income tax and personal assets tax in the tax year in which the reverse withholding tax is collected.

_____________________________________________________________________________________________________________

For additional information with respect to this Alert, please contact the following:

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young Abogados, Latin American Business Center, Madrid
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Tokyo

ATTACHMENT

Document ID: 2020-6240

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more