On 23 January 2019, Argentina’s Tax Authority issued General Resolution No. 4,400, which establishes the procedure for paying temporary duties on exported services.
On 2 January 2019, the Argentine Executive Power issued Decree No. 1201/2018, establishing a duty on exports of services until 31 December 2020. For background, see EY Global Tax Alert, Argentina establishes temporary duties on export of services, dated 10 January 2019.
The Decree established an export duty on exports of services at a rate of 12% with a maximum limit of Argentine pesos (ARS) 4 per each US dollar (US$) of the amount on the invoice or equivalent document. Considering an exchange rate of approximately ARS 40 per US$, this limit would currently represent approximately 10% of the value of the service exported. For future increases of the foreign exchange rate, the burden of the export duties will decrease in terms of effective percentage.
General Resolution No. 4,400
The Resolution establishes that exporters subject to the new duties will have to use the tax authorities’ website application, “Sistema de Cuentas Tributarias.” The Resolution also clarifies several issues.
Specifically, the Resolution clarifies that if type “E” invoices are issued by exporters of services in a different currency than the US$, the amount of the transaction must be converted to the US$ at the exchange rate in force at the end of the previous business day of issuance of the invoice or the anticipated request of such invoice. In this scenario, the amount invoiced in foreign currency must be first converted into Argentine pesos, at the seller exchange rate of the Banco de la Nación Argentina, and then the amount in Argentine pesos must be converted into US dollars at the seller exchange rate of the same bank.
To file the monthly return, exporters must use the “Sistema de Cuentas Tributarias” website and click on the “Conformación de Derechos de Exportación” option. A draft return calculated by the tax authorities based on the electronic invoices issued by the exporter will be available the last day of each month on such website. The taxpayer must file that return from the 10th to 15th business days of the following month by either approving the draft return issued by the tax authorities or amending it.
The payment of the duties must be made within 15 business days of the following month in which the tax authorities made available the monthly draft return for the taxpayer’s approval. Entities that exported services for less than US$2 million in the previous calendar year, however, will have an additional 45 days to pay the duties, counted from the due date of the return (i.e., the 15th business day). The payment must be made through the federal tax application, “Billetera Electrónica AFIP.” Through that application, the exporters will issue a payment voucher (Volante Electrónico de Pago).
EYG no. 000197-19Gbl
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