In recent days we have received numerous inquiries about the applicability of the “País” Tax established by Social Emergency Law # 27,541 to payments abroad originated in software licensing to licensees in Argentina. In order to clarify the issue, please note that:
The Country Tax does NOT apply to the payment of software licenses, no matter what the type of licensing or payment. This is based on the fact that subsections b) and c) of article 35 expressly and strictly refer to the payment of services to foreign providers.
In accordance with point 2 of Article 10 of the Customs Code, copyright and intellectual property rights are expressly differentiated from services.
Copyright and intellectual property rights, a concept within which software use licenses are classified, are classified in subparagraph b) of point 2; while the importation of services is expressly classified in subsection a), and the exportation of services is expressly classified in subsection c) of point 2 of Article 10.
There is a peaceful history of different treatment of services and copyright in Argentine foreign trade, the most recent example being the application of export duties to services, but not to the licensing of copyright by an Argentine holder to a licensee abroad. This applies to license payments for software that a licensee or distributor makes to licensors from abroad.
If you would like more information, or review a particular situation, do not hesitate to contact Dr. Palico Millé at palico@mille.com.ar.