On January 2, 2019, Decree 1201/2018 was published, ruling Export Rights on the export of services. Following you will find the most relevant points of the Decree.
- The export duties are set at 12% and shall be valid until December 31, 2020 and shall tax export of services included in Subsection 2.c) of Section 10 of the Customs Code.
- This specific and univocal reference does not include income obtained from the software licensing, even if it is charged to foreign licensees. This is so because software is included in Subsection 2.b) of Section 10 of the Customs Code.
- Services provided by an Argentine company abroad Argentina are not within the scope of the new tax, as Subsection 2.c) only includes services provided in Argentina.
- The tax will be valid from January 1st, 2019, and will be applicable for the services provided and invoiced as of that date, even if they arise from contracts entered into before the existence of this export tax over export of services
- A limit is set forth to the amount of export duties, of Ar $ 4 per dollar of the taxable value.
- The formula to calculate the limit will be: 100% of the taxable value x Ar $4 = Limit in Argentine pesos of the export duty
- At the current exchange rate, the limit is applicable.
- If applicable, the limit will be maintained in pesos until the cancellation of the obligation.
- In the event that the peso appreciates and the limit does apply, the export duty will be fixed and paid in dollars.
- The formula to calculate the limit will be: 100% of the taxable value x Ar $4 = Limit in Argentine pesos of the export duty
- The tax shall be paid within the first fifteen business days of the month after the one in which the export was invoiced, for which a monthly affidavit must be presented. The process for payment and the affidavit are not ruled yet.
- If in the previous calendar year, the exporter in question exported services for an amount less than USD $ 2M, a wait of 45 calendar days for payment, without interest, will be granted from the day following the expiration of the affidavit.
- Micro and Small companies will not pay export duties for the export of services up to an aggregated amount of USD $ 600K.
- Certain articles of the Customs Code are excepted for the exportation of services, among them: The application of the Common Nomenclator to services; the need for a customs broker to export services; Registration as Exporter; the control of the export of services by the Customs Service; the customs procedures, etc.
- AFIP (Argentine Tax Authority) is appointed to issue complementary and interpretation rulings, as well as to appoint a specific branch that will conduct the claims in case the affidavits submitted by an exporter are challenged.
You may find the complete text of the Decree here: http://servicios.infoleg.gob.ar/infolegInternet/anexos/315000-319999/318254/norma.htm.
Do not hesitate to contact us in case of doubt of this new tax.