Argentina’s tax authority (AFIP) announced, in a release, that the withholding regimes for value-added tax (VAT) and income tax on electronic payments will be repealed, effective from 1 September 2024.
This follows after Argentina’s Ministry of Economy issued Resolution No. 780/2024, instructing the AFIP to revoke the withholding regimes VAT and income tax for electronic payments made from 1 September 2024.
The AFIP was also authorised to repeal the regime through Ministerial Resolution No. 780/2024, urging provinces and the Autonomous City of Buenos Aires to eliminate similar withholding regimes for local taxes.
Consequently, AFIP, through General Resolution No. 5554/2024, published in the Official Gazette, repealed the aforementioned regimes established in General Resolutions (AFIP) No. 140/1998, 4011/2017, and 4622/2019.
This benefit, which exempts payments from national tax withholdings, applies to all taxpayers.
The Ministry of Economy expanded the scope of the measure under Article 102 of Law 27,743 on Palliative and Relevant Fiscal Measures, which initially included only small taxpayers.
To extend the aforementioned benefit to provincial withholdings, Law 27,743 and the ministerial resolution call on the provinces and the Autonomous City of Buenos Aires to take similar measures for withholdings of gross income tax – for both local and from the Multilateral Agreement – that affect electronic payments.
