Tax Treaty with Brazil

The amendment to the Argentina-Brazil Tax Treaty executed on July 21, 2017 entered into force on July 29, 2018:

• Provisions for taxes withheld at source become effective as from January 1, 2019
• Provisions for other taxes become effective as from the fiscal year beginning on or after January 1, 2019.

The following amendments were introduced:

Revaluation Tax

Adjustment for inflation had been suspended in Argentina for 25 years. Therefore, corporate taxpayers were commonly taxed on inflation based gains. Law 27430 provides taxpayers with the option to adjust the value of their assets based on a Government set index, paying in exchange a one-time Revaluation Tax.

Decree 353/2018 establishes that such option is available until the end of the sixth month following the closing of the first fiscal year after December 29, 2017.

Decree 613/2018 extends such deadline until the end of the twelfth month. The Argentine Tax Administration (“ATA”) is allowed to further extend this period for an additional 60-day term.

Resolution 4287/2018, issued by the ATA, sets the last dates to exercise the option according to the new deadline (i.e., for FY ended in December 2017: February 28, 2019; for FY ended in January 2018: March 29, 2019; for FY ended in February 2018: April 30, 2019).

Decree 613/2018 was published in the Official Gazette on 7/4/2018 and became effective on July 5, 2018.

Car Parts – Import Duties

Resolution 67/2018, issued by the Industry Office, establishes the proceedings to apply for a reduced import duty rate of 2% on car parts imported from countries outside MERCOSUR. Please note that current rates for most products range from 14% to 18%.

Only car parts not manufactured in any of the MERCOSUR member countries are eligible for the reduced rate. The Industry Office has published the list of the eligible car parts, which will be updated on a periodic basis.

In order to access to this reduced rate, Argentine car and car parts manufacturers must be registered with the Registry of Manufacturers. This list will be informed to the Customs Office as from January 15, 2019.

Resolution 67/2018 was published in the Official Gazette on July 19, 2018 and became effective on July 20, 2018.

Electronic Fiscal Domicile

Law 27430 requires all taxpayers to set an electronic fiscal domicile.

Resolution 4280/2018, issued by the ATA, regulates such mandatory requirement:

• Notices and communications given at the electronic fiscal domicile are considered valid and effective.
• Notices are considered legally given: (i) on the day they are opened, or (ii) on the immediately subsequent Monday to the date on which notices are available.

Resolution 4280/2018 was published in the Official Gazette on July 25, 2018 and will become effective on August 1, 2018.

Renewable Energy – Río Negro

Law 27,191 sets a promotional framework for the generation of electric energy from renewable sources (the “Promotional Framework”).

The Province of Río Negro adheres to the Promotional Framework, through Law 5291, and provides the following benefits for taxpayers registered or residing in its territory:

• Tax stability for 20 years
• Turnover Tax exemption
• Stamp Tax exemption

Law 5291 was published in the Official Gazette on July 16, 2018 and became effective on July 24, 2018.