In brief
On 10 October 2023, Resolution No. 5430/2023 (“Resolution“) was published in the official gazette. With respect to all transactions covered by the Tax on the Acquisition of Foreign Currency (“Tax“), the Federal Tax Authority (FTA) increased the collection regime from 5% to 25% on the acquisition of foreign currency for payments. The Resolution will be applicable to such transactions carried out as of 10 October 2023.
In focus
1. General considerations
The Tax was created by Law No. 27,541 of Social Solidarity and Productive Reactivation within the framework of Public Emergency (“Emergency Law“) back in December 2019. It applies to Argentine tax residents (at rates of 30% or 8% depending on the transactions) for the following activities:
- Acquisition of foreign currency by Argentine residents — including travel checks — for savings or without any specific purpose related to the payment of obligations under the terms of the existing FX regulations
- Exchange of foreign currency by Argentine financial entities, in the name of a local party, to pay for goods purchased or services rendered abroad, cancelled using a credit, purchase or debit card or any other payment method determined by the regulations, including extractions of cash made abroad (Purchases made using websites and any other type of transactions that imply a remote acquisition of foreign currency are also included.)
- Exchange of foreign currency by Argentine financial entities for the payment, in the name of a local party, of services rendered by nonresident parties, cancelled by credit, purchase or debit cards, as well as any other payment method determined by the regulations
- Acquisition of services abroad using travel and tourism agencies of Argentina
- Acquisition of land, air and water passenger transportation services for destinations outside of Argentina, to pay for which it is necessary to acquire foreign currency
2. Subjects liable for the collection regime at a rate of 25%
Taxpayers liable for the collection regime at a rate of 25% are residents in the country, i.e., individuals or legal entities, undivided estates and other taxpayers, who (i) carry out transactions covered by the Tax as mentioned in item 1. a), b), c), d) and e) for any amount, or (ii) import “sumptuous” goods listed in Decree 682/2022.
3. Collection agents
The subjects designated by the Emergency Law, such as financial entities, travel and tourism agencies, and transport companies in Argentina, must act as collection agents.
If intermediaries intervene in such payments, they must apply the corresponding collection.
4. Characteristics of the collection
The collected tax rate will be 25% on the amounts in Argentine currency (ARS) of each transaction reached by the Tax.
The collection will be computable in the annual tax return of the personal assets tax (PAT), when collected from an individual or undivided estate, or of the income tax (IT) when collected from other taxpayers (corporations), corresponding to the fiscal year in which the payments were made.
If the collections generate a tax credit, it will be applied for the cancellation of other federal tax obligations, or reimbursement may be requested.
If subjects who are not taxpayers of the IT or PAT paid the collection, they may request the reimbursement of the payments made once the calendar year is concluded.
5. Effective date
The Resolution will be applicable to transactions carried out as of 10 October 2023.
