New Exemption to the Tax on Debits and Credits

The tax on debits and credits carries a capital importance for all the activities related to the movement of funds, such as payment charges, transfers and remittances. Following the Decree, it should be recalled that the Argentine Central Bank authorized financial entities to delegate  the attention of their customers and the public in general to "complementary financial services agencies" in the Argentine territory with their own personnel and/or technical resources (Com. "A" 6603, 6612 and subsequent modifications). This seeks to increase the geographical coverage of the system, providing services through alternative channels that reduce the barriers of access to financial services to the population, thus promoting financial inclusion.

For this purpose, the Decree provides that, with an impact on the taxable events that are carried out as of May 28, 2019, the following wording must be incorporated as the last subsection of the first paragraph of article 10 of the Annex of Decree No. 380/2001 (as amended):

“…) Accounts used exclusively for the operations inherent to the specific activity of providing financial services for those subjects who act as complementary financial services agencies, in compliance with the regulations of the ARGENTINE CENTRAL BANK.

Regarding companies dedicated to the service of electronic payments and/or collections on behalf and order of third parties, the accounts reached by the franchise established in subsection d shall continue to enjoy the exemption set therein even when those subjects act as complementary financial services agencies”.

Regarding the last paragraph of this provision, subsection d of article 10 of the annex to the Decree No. 380/2001 (as amended), provides, among other things, that they will be exempt of the taxes on debit and/or credit corresponding to the accounts used exclusively to the specific development of their activities for the companies dedicated to the service of electronic payment and/or collections on behalf of third parties, of billing of public services, taxes and other services, including the movements in the account that enables the delivery or cash deposits against debits or credits in bank accounts of the corresponding clients. Pursuant to the Decree, the exemption is applicable to the extent that they act as complementary financial services agencies.