In Argentina, General Resolution 3884(AFIP) was published in the Official Gazette of 26 May 2016 and became in force from that date. The new Resolution amends General Resolution 830 (AFIP) which establishes a widespread system of withholding tax on domestic payments increasing the exempt amounts.
The most relevant increases according to General Resolution 3884(AFIP) are as follows:
-for income derived from the exploitation of copyrights the limit has been increased from ARS 10,000 to ARS 50,000;
–for interest derived from transactions conducted without the participation of financial entities the limit has been increased from ARS 1,200 to ARS 3,500;
–for rents derived from the lease of movable goods or immovable property the limit has been increased from ARS 1,200 to ARS 5,000;
–for royalties the limit has been increased from ARS 1,200 to ARS 3,500;
–for transfer of title of inventories, movable goods, trademarks or patents the limit has been increased from ARS 12,000 to ARS 100,000;
–for compensation to service providers and independent contractors the limit has been increased from ARS 5,000 to ARS 30,000;
–for commissions and other remuneration to intermediaries and agents the limit has been increased from ARS 1,200 to ARS 7,500;
–for fees to companies’ board members the limit has been increased from ARS 5,000 to ARS 30,000; and
–for fees to lawyers, accountants and other professionals the limit has been increased from ARS 1,200 to ARS 7,500.
The new exemption limits are applicable to payments made from 1 June 2016.
