Global Tax Alert (News from Americas Tax Center) | 15 January 2014

Argentina imposes new income tax collection system on triangular exports

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The Argentine Federal Tax Authorities (AFIP) have issued General Resolution 3577/2013 (published in the Official Gazette on 7 January 2014), creating an income tax collection system applicable to Argentine exports whereby the country of destination for the goods differs from the country to which the goods are invoiced (triangular exports).

The amount to be collected shall be calculated at the 0.50% rate over the FOB (free on board) value of the export (same taxable base utilized for calculation of export duties). The rate will be 2% if the export invoices are issued to parties domiciled, incorporated or located in countries deemed non-cooperative for tax transparency purposes.1

This tax surcharge (in Spanish percepción” is applicable to exports (including different export systems such as definitive exports for consumption, exports for consumption containing inputs that were imported previously on a temporary basis, etc.). The Customs Authorities will act as the agent collecting the tax, and the surcharge will be considered by the exporters as a payment on account of income tax (to be computed in the income tax return of the appropriate fiscal year).

Taxpayers can usually obtain exclusion certificates issued in accordance with AFIP’s General Resolution 830 to avoid surcharges whenever there are reasonable justifications, for instance the avoidance of significant income tax excess credits. General Resolution 3577 specifies that the exclusion certificates will not be applicable for the surcharge established on exports. Thus, this surcharge will apply to every taxpayer, regardless of their particular income tax position.

Finally, the resolution also enacted a change in the mechanism available for exporters to claim the reimbursement of VAT credits associated with exports. In this regard, taxpayers that carry out triangular exports subject to this new income tax surcharge will be subject to additional controls (pursuant to Title IV of AFIP’s General Resolution 2000) in order to obtain the approval of their reimbursement requests.

The provisions contained in General Resolution 3577 are applicable to “triangular” exports that have occurred since 7 January 2014.

Endnote

1. As per AFIP’s General Resolution 3576/2013 issued recently the list of countries considered as cooperators for purposes of fiscal transparency includes: Albania, Andorra, Angola, Anguilla, Arab Emirates, Armenia, Aruba, Australia, Austria, Azerbaijan, Bahamas, Belgium, Belize, Bermuda, Bolivia, Brazil, Cayman Islands, Canada, Czech Republic, Chile, China, Colombia, Costa Rica, Croatia, Cuba, Curaçao, Denmark, Dominican Republic, Ecuador, El Salvador, Estonia, Faroe Islands, Finland, France, Georgia, Germany, Ghana, Greece, Greenland, Guatemala, Guernsey, Haiti, Honduras, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Jersey, Kazakhstan, Kenya, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Macau, Macedonia, Malta, Isle of Man, Morocco, Mauritius, Mexico, Moldavia, Monaco, Montenegro, Montserrat, Nicaragua, Nigeria, Norway, New Zealand, Netherlands, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, San Marino, Saint Martin, Saudi Arabia, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Tunisia, Turks and Caicos Islands, Turkmenistan, Turkey, Ukraine, United Kingdom, United States, Uruguay, Vatican City, Venezuela, Vietnam and British Virgin Islands. This is an exhaustive listing; therefore, the remaining countries, dominions, jurisdictions, territories and associate countries not included in the list (such as for example Hong Kong), shall be deemed non-cooperative countries. The tax authorities are empowered to update the list depending on the effective exchange of tax information achieved with the jurisdictions.

For additional information with respect to this Alert, please contact the following:

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires
  • Carlos Casanovas
    +54 11 4318 1737
    carlos.casanovas@ar.ey.com
  • Gustavo Scravaglieri
    +54 11 4510 2224
    gustavo.scravaglieri@ar.ey.com
  • Ariel Becher
    +54 11 4318 1686
    ariel.becher@ar.ey.com
  • Pablo Baroffio
    +54 11 4510 2271
    pablo.baroffio@ar.ey.com
Ernst & Young LLP, Latin American Business Center, New York
  • Alfredo Alvarez
    +1 212 773 5936
    alfredo.alvarez@ey.com
  • Pablo Wejcman
    +1 212 773 5129
    pablo.wejcman@ey.com

EYG no. CM4101