On 18 July 2019, Argentine Federal Secretary of Treasury published Resolution 598/2019 in the official gazette amending Resolution 50/2019 on compensatory and punitive interest rates.
According to the Resolution 50/2019, current effective monthly rate is maintained amounting to 1.2 times (for compensation interest) and 1.5 times (for punitive interest) the nominal annual rate for fixed-term deposits in pesos for 180 days of the Argentine National Bank, effective on the 20th day of the month immediately preceding the beginning of the quarter. And resolution 598/2019 added that monthly compensatory and punitive interest rates are instead 0.83% and 1.0%, respectively if the tax debt is denominated in USD.
In cases of return, refund or compensation of taxes governed by said law and the assumptions provided for in articles 811 and 838 of the Customs Code, in force in each calendar quarter, will be the monthly effective arising from considering the average passive rate published by the Central Bank of the Argentine Republic for the period of 30 days ended on the 20 days of the month immediately preceding the start of said quarter. Whether concepts expressed in US dollars, the applicable interest rate will be 0.20% per month.
The Resolution enters into force on 1 August 2019.
