AFIP has previously also declared that it had increased the tax on foreign currency purchases (PAIS tax) from 7.5% to 17.5% on 13 December, 2023.
The Argentine Tax Authority (AFIP) announced on Friday, 10 May, 2024, in a release the issuance of Decree No. 385/2024. The Decree went into force on 6 May, 2024, and establishes a 17.5% PAIS tax rate on foreign currency purchases.
The foreign currency transactions include:
- The return on portfolio investments made by non-residents, originating from the collection of profits and dividends in Argentina since 1 September, 2019, as per the rules by the Argentine Central Bank (BRCA) regarding access to the free exchange market.
- The subscription of “Bonds for the Reconstruction of a Free Argentina” (BOPREAL), issued in Argentine Pesos by the Argentine Central Bank (BCRA), when they are bought under the following conditions:
- For the payment of profits and dividends, according to the terms set by the BCRA within the regulations governing access to the foreign exchange market.
- The repatriation of portfolio investments by non-residents originating from the collection of profits and dividends in Argentina since 1 September, 2019, as per the terms established by the BCRA within the regulations on access to the free exchange market.
