The Argentine National Executive Branch published Decree 777/2024 in the Official Gazette on 2 September 2024. This decree amends the tax rates applicable to certain foreign currency purchases (Impuesto PAIS) related to payments made abroad for specific goods and services.
The PAIS tax rate on imports has been reduced from 17.5% to 7.5%. The lowered PAIS tax rate is applicable to foreign acquisition of freight and transportation services related to the import or export of goods. Additionally, this reduced rate applies to imports of goods, excluding luxury items.
On 3 September 2024, Argentina’s Federal Administration of Public Revenue (AFIP) issued General Resolution 5559, which reduced the prepayment of the Impuesto PAIS for imported goods from 16.625% to 7.125%.
This Decree is applicable to purchases made on or after 3 September 2024.
Previously, Argentina’s Federal Administration of Public Revenue (AFIP) declared that it had increased the PAIS tax from 7.5% to 17.5% on 13 December 2023.
The AFIP announced the PAIS tax rate increase in the Decree No. 385/2024 on 10 May 2024. The Decree went into force on 6 May, 2024, and establishes a 17.5% PAIS tax rate on foreign currency purchases.
