The decree provides further guidance on the application of the tax on financial transactions on payments made through electronic platforms, cryptocurrencies and similar instruments.

On November 17, 2021, the Argentine Government published, in the Official Gazette, Decree 796/2021, which modifies the tax on financial transactions enacted by Law No. 25,413.

Background

The tax on financial transactions applies to credits to, and debits from, bank accounts and other movements of funds. The general tax rate is 0.6% on the amounts credited to or debited from the taxpayer's bank account. For movements of funds, the general tax rate doubles to 1.2%.

Decree 796

Exemptions

The decree exempts from the tax on financial transactions movements of funds collected or paid on behalf of third parties by payment services providers (PSPs) and entities that collect taxes or payments for public services or other services.

Cryptocurrencies and similar instruments

The decree clarifies that the exemptions from the tax on financial transactions in Decree 380/2001 and other regulations do not apply to cases in which the movement of funds is linked to the purchase, sale, exchange, brokerage or any other operation involving crypto assets, cryptocurrencies, digital currencies, or similar instruments. The tax on financial transactions will apply in accordance with the rules to be issued by the Argentine federal tax authorities.

Tax collection

If entities that do not qualify as micro or small companies under the terms of Section 2 of Law No. 24,467 move cash through intermediaries, the decree establishes that the intermediaries must inform the financial institutions that the entities moving the cash are not micro or small companies. The financial institutions must then collect the tax on financial transactions.

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