On 16 May 2018, Argentina has published a General Resolution (4245/2018 of 15 May 2018) on their official website. The Resolution 4245 modifies the General Resolution 830/2000, which introduced income tax withholding on particular payments made to companies, trusts and certain other persons when domiciled or resident in Argentina, including interest, royalties, rental payments, professional service fees, etc.
The Resolution increased the minimum withholding limit from ninety pesos ($ 90.-) to one hundred fifty pesos ($ 150.-) in the first paragraph of Article 29 of Resolution No. 830 for the rest of the concepts subject to retention. Further, it has also increased a minimum withholding tax (WHT) from four hundred fifty pesos ($ 450.-) to six hundred fifty pesos ($ 650.-) for urban real estate rentals or leases, given that the beneficiary is a non-registered person.
The resolution also contains an updated Annex VIII to Resolution 830, which sets the withholding tax rates and the exemption threshold for the types of payment involved. This includes a general increase in the exemption limit for most types of payment, with an increase in the interest and royalty exemption from ARS 3,500 to ARS 5,000, ARS 5,000 rental payments to ARS 7,120 and ARS 7,500 Professional Service fees to ARS 10,700.
