July 26, 2023
Argentina applies tax on purchases of foreign currency in new transactions, provides preferential foreign-exchange rate to certain exported goods
On 24 July 2023, the Argentine National Executive Branch ("PEN" in Spanish) published in the Official Gazette Decrees 377 and 378, which establish certain tax and foreign exchange measures.
On 23 December 2019, the Argentine Government enacted Law 27,541. Among the changes implemented, this tax reform law established a new tax on certain purchases of foreign currency ("Impuesto PAIS" in Spanish), including (i) purchases of foreign currency without a specific purpose by Argentine residents, (ii) purchases of goods or services from abroad or purchases by Argentine residents abroad through credit or debit cards, and (iii) purchases made online through portals or virtual websites in foreign currency.
Under those rules, both Argentine individuals and entities performing taxable purchases were subject to the tax at a 30% rate, except for the purchase of digital services, which were taxed at an 8% rate.
Decree No. 377
Decree No. 377 extends the application of Impuesto PAIS to the acquisition of foreign currency in accordance with the following rules:
The acquirer is responsible for paying the tax, but entities authorized by the Central Bank of the Argentine Republic (BCRA) to operate in the foreign exchange market shall act as collection and liquidation agents.
Decree No. 378
Decree No. 378 instructs the BCRA to establish a mechanism through which Argentine exporters that, in adhering to the Export Increase Program for Regional Economies ("Programa de Incremento exportador para Economias Regionales") established by Decree No. 194/2023 (the Program), liquidate foreign currency corresponding to certain regional economies' goods by 31 August 2023 settle those funds at 340 Argentine pesos (ARS 340) per US dollar. (The current foreign-exchange rate is approximately ARS 270 per US dollar.)
Goods included in the Program will be the following:
Decree No. 378 also establishes that the BCRA will implement the necessary mechanisms so that the Argentine pesos arising from the foreign currency liquidation under the Program will be, at the exporter's option:
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 LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor