As of 23 December 2024, the tax referred to as "Impuesto PAIS" and imposed on certain purchases of foreign currency to pay for certain goods and services abroad has been eliminated, after being in force for five years.

The Impuesto PAIS was created as an emergency tax for five years and applied on certain purchases of foreign currency at the official exchange rate to make payments abroad. The rates varied over the years, with the latest applicable rates being:

• 7.5% on the acquisition abroad of freight services and other transportation services for import or export operations of goods, or their acquisition in the country when provided by nonresidents
• 7.5% on the import of goods, except luxury goods
• 25% on the import of services

For background, see EY Global Alert, Argentina reduces Impuesto PAIS tax rate, dated 03 September 2024.

Although the Impuesto PAIS was eliminated, an Income Tax and Tax on Personal Assets reverse withholding regime continues to exist at a rate of 30% on certain cross-border transactions that involve the purchase of foreign currency, including:

• Purchases of foreign currency without a specific destination
• Purchases of goods or services from abroad through credit, debit or purchase cards, including purchases made online through portals or virtual websites in foreign currency
• Purchases of services rendered by nonresidents in the country through credit, debit or purchase cards
• Purchases of services rendered abroad through Argentine travel agencies
• Purchases of ground, air and water passenger services with destinations outside Argentina

For companies operating in Argentina, this reverse withholding should be creditable against Corporate Income Tax.