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Argentina Imposes Temporary Tax on Exported Services

POSTED ON Feb. 13, 2019

A decree published in Argentina’s official gazette last month implemented a temporary levy on export sales of services, applicable through December 31, 2020.

Under Decree 1201/2018, the levy will be calculated at the rate of 12 percent but will be capped at ARS 4 (about $0.11) per each U.S. dollar of taxable value arising from the invoice or equivalent document. Services are deemed exported when they are performed in Argentina but are effectively used or exploited abroad. The levy, which took effect January 1, will apply to export sales of services supplied and charged from that date, even if they are contracted at an earlier date.

The levy should be declared and paid within 15 business days after the end of the month during which the exported services are charged. If exporters supplied services valued at less than $2 million during the preceding calendar year, the payment deadline will be extended by 45 calendar days.

Exports by micro- and small companies as defined under Law No. 24,467 will be subject to the export levy if the value of the exported services amounts to more than $600,000 in a calendar year.

The Federal Revenue Authority on January 23 issued General Resolution No. 4,400 detailing the procedure for paying the temporary export levy. The resolution specifies that if an invoice issued by a service exporter is denominated in a currency other than the U.S. dollar, the invoice value should be converted to dollars at the exchange rate applicable at the closing of the business day immediately preceding the day the invoice was issued. Under the procedure established by General Resolution No. 4,400, the invoice denominated in a foreign currency must first be converted into Argentine pesos at the exchange rate of the Central Bank of Argentina. The peso amount will then be converted into dollars using the Central Bank’s exchange rate.

Slim Gargouri, chartered accountant, Sfax