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 Argentinaโ€™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.