Argentina has announced a reduction in the interest rate for late tax payments, effective from 1 February to 31 March, 2025.

The compensatory interest rate for late payments is 7.26% per month, down from 7.47% per month from 1 December 2024 to 31 January 2025.

The punitive interest rate for late payment is 8.38% per month for tax debts referred to the courts, down from 8.62% per month from 1 December 2024 to 31 January 2025.

This development follows after Argentina’s Federal Tax Authority (ARCA) announced the new interest rates in Auction Rate Securities (ARS) applicable to late tax payments for the period from 1 December 2024 to 31 January 2025.