The double tax treaty between Argentina and the United Arab Emirates is now in force, joining the recently signed DTT between Argentina and Mexico.
Argentina’s new Law 27,430 introduces a new taxable event: a Value Added Tax (hereinafter VAT) applicable to the importation of “digital services” rendered by a non-resident to a resident individual or entity when the effective use or exploitation of the service is carried out inside Argentina.
An earlier regulation, Decree 354/2018 of April 23, 2018, a deficient attempt to regulate the VAT applicable on digital services, was recently repealed.
According to the current wording of the VAT Law and its Regulatory Decree, VAT applicable to the importation of digital services has the characteristics that are detailed below.
The Argentine executive branch has established new export duties applicable to goods and services. These new export duties were established by a Decree of the Executive Power (Decree No. 793/2018) issued on September 3, 2018 and published at the official Gazette on September 4, 2018, with immediate effect for the export of goods.
The effective date for the application of export duties on services is expected to be January 1, 2019, as the government would need Congress to enact a law providing for such export duties.
The new export duties on goods and services are among the measures being applied by the Macri Administration with the goal of reducing Argentina’s fiscal deficit.
The new export duties, which amount to 12 percent of the value of the exported goods and/or services, include a cap of AR$3 or AR$4 for each US dollar of exports, depending on the kind of exported good or service. These new export duties apply in addition to any other export duties already in force.
The authority of the executive branch to create or impose taxes or import/export duties without Congressional approval is questionable. Although the Argentine Customs Code provides the executive branch with wide power to establish import/export duties, such delegation has been challenged before the federal courts on constitutional grounds.
The Argentine Federal Supreme Court, in its ruling in Camaronera Patagónica, dated April 15, 2014, established that the executive branch is not entitled to create or impose taxes or export duties, even when reasons of urgency, crisis or financial needs are invoked, claiming that, pursuant to the Argentine Constitution, taxes fall under the scope of the legislative branch’s authority, not the executive’s.
DLA Piper Argentina’s tax team has initiated a protective action (amparo) and requested an injunction before the federal courts, in order to challenge the constitutionality of Decree No. 793/2018.
This is a guest post of RCTZZ Abogados in Argentina.
Argentina’s Financial Information Unit (FIU), the governmental authority that enforces the law on prevention of money-laundering activities and terrorism financing has introduced a resolution stating…
Continue Reading Argentina: Financial Information Unit creates Registry of Independent External Auditors of Money Laundering and Terrorism Financing Prevention
Argentina’s Act 26,737, enacted in 2011, restricts foreign ownership of rural real estate. The restrictions imposed by Act 26,737 are relevant for any project that involves acquisition of rural land in Argentina .
The Act imposes several limitations. Under the Act and its applicable amendments, foreign ownership is defined as any acquisition, transfer of ownership or possession rights, whatever the type or name granted by the parties or duration of the same, in favor of a series of points, set forth below. …
Continue Reading Argentina: Restrictions On ownership of Rural Land by Foreigners
Guest post by Hernán D. Camarero, Partner in Richards, Cardinal, Tützer, Zabala & Zaefferer, an independent law firm
Argentina’s Financial Information Unit (FIU) – the authority that enforces the law on prevention of money-laundering activities and terrorism financing Nr. 25,246, as amended (the AML Act) – has issued Resolution Nr. 30-E/2017 for financial institutions (FIs) and foreign exchange entities as obliged subjects –FIU’s reporting agents – under the AML Act. Res. 30 replaces and abrogates former FIU Resolution Nr. 121/11. It represents another important move by Argentina in its further integration into the international financial and banking systems.…
Continue Reading ARGENTINA: Financial Information Unit’s New AML Regulations for Financial Institutions
In furtherance of the federal government’s quest to increase the flexibility of…
Continue Reading ARGENTINA: NEW FOREIGN EXCHANGE REGULATIONS IN EFFECT JULY 1ST, 2017
Guest Post by By Richards, Cardinal, Tützer, Zabala & Zaefferer
In furtherance of President Mauricio Macri’s public statements about the need to increase transparency in the public sector in Argentina, the Executive Branch has submitted…
Continue Reading New Draft Bill on Lobbying Activities in Argentina
The Supreme Court of Justice of the Republic of Argentina has issued a decision suspending rate increases on natural gas service throughout Argentina for residential users.
The increases had been approved as a part of substantial energy and financial reforms undertaken by the Macri administration to promote investment in aging infrastructure.
The Court’s ruling delays the contemplated price increases for residential users pending a robust public hearing.
The Court limited its August 18 decision to residential users based on the limited standing of the plaintiffs (consumer associations). Accordingly, a similar decision could eventually extend the same standard to industrial and commercial users.
La Corte Suprema de Justicia de la República Argentina dictó una decisión suspendiendo los aumentos de tarifas para el servicio de gas a usuarios residenciales en toda la Argentina.
Los aumentos habían sido aprobados como parte sustancial de una serie de reformas en materia energética y financiera llevadas a cabo por la Administración Macri para promover inversiones en la deteriorada infraestructura.
El fallo de la Corte retrasa los aumentos de tarifas previstos para los usuarios residenciales hasta que se realice una audiencia pública ampliamente participativa.
La Corte circunscribió los efectos de su decisión del 18 de agosto a los usuarios residenciales con base en la limitada posición de los demandantes (asociaciones de consumidores). Por lo tanto, una decisión similar eventualmente podría abarcar a usuarios industriales y comerciales.