Amendments to Tax on Credits and Debits in Bank Accounts and Federal Excise Taxes

• Tax on Credits and Debits in bank accounts

Increase of tax rate in certain cases. In the event of cash withdrawals, debits made in bank accounts will be subject to double  the current applicable rate. This provision is not be applicable if the bank account is owned by individuals or entities which qualify as Micro and Small-Sized Enterprises. In other words, the applicable tax rate to the debit when cash withdrawals are made by large companies is doubled.

• Federal Excise taxes

Amendments to exempted minimums and applicable rates. As currently drafted, article 39 of Law No. 24,674 of Federal Excise Taxes establishes a general tax rate of 20%, with certain exempted minimums, applicable to the sale of certain goods subject to this tax.

The Project introduces an amendment to said article, by splitting the tax rates in accordance with the type of good involved and modifies the exempted minimums as follows:

1. Operations which selling price, without considering taxes, is equal to or less than ARS 1,300,000, will be exempted, with the following exceptions: (a) in the case of motorcycles, the exemption will be applicable when the amount is equal to or lower than ARS 390,000; (b) in the case of leisure or sports vessels, the exemption will be applicable when the amount is equal to or lower than ARS 1,700,000; and (c) in the case of aircraft, no exempted minimum applies.
2. In the case of vehicles for terrestrial transport (excluding buses and similar), for camping and chassis and engines of said vehicles, the following tax rates will be applicable: (i) 20%, if the selling price, without considering taxes, is higher than ARS 1,300,000 and lower than ARS 2,400,000; and 35%, if the selling price exceeds ARS 2,400,000.
3. In the case of motorcycles, the following tax rates will be applicable: (i) 20%, if  the selling price, without considering taxes, is higher than ARS 390,000 and lower than ARS 500,000; and (ii) 30%, if the selling price exceeds ARS 500,000.
4. In the case of vessels and aircraft, the tax rate of 20% is maintained.

The Argentine Tax Authority will update the indicated amounts on a quarterly basis, taking into consideration the variation of the Wholesale Internal Price Index.