Tax
Legal Update
On December 11th, 2018, the General Resolution (AFIP) No. 4356
(hereinafter, the “Resolution”) was published in the National Official Gazette.
This Resolution establishes the mechanism for the payment of the value added
tax (hereinafter, “VAT”) by the substitute taxpayer of foreign beneficiaries
that perform activities taxed in Argentina under the terms of Section 1,
subsection b), Section 4, subsection h) and Section 4.1 of the VAT law.
The Resolution establishes that the individuals and companies resident in
Argentina that pay for said services as well as the representatives or
intermediaries of said foreign beneficiaries that perform them on their behalf
are considered substitute taxpayers.
The tax will have to be settled and paid within 10 business days after the
execution of the taxable event.
Argentine residents that are final consumers or are registered under the
Simplified Regime for Small Taxpayers shall not be considered substitute
taxpayers. The Resolution also establishes the procedure applicable for the tax
withholding by financial entities that intervene in payments performed by
exempt taxpayers and the National, Provincial, municipal governments, or the
Government of the City of Buenos Aires, its autarchic and decentralized
entities.
Those taxpayers registered in the VAT before the tax authorities will be able
to consider said tax as a fiscal credit in the fiscal period in which it was
paid. They will be able to offset the tax with fiscal debit in the following
periods, pursuant to Section 24 of the VAT Law.
The procedure indicated above will be enforceable as from January 28th, 2019.
The tax accrued due to the tax events as from September 12th, 2018 up to
January 28th, 2019, will have to be paid by the substitute taxpayer until
February 15th, 2019.
For further information, do not hesitate to contact Ariadna Artopoulos, Lucía de Zavalia o Francisco Altamirano.