Argentina implements withholding-tax exemption for electronic payments

The Argentine Tax Authorities, on 20 August 2024, implemented General Resolution No. 5554 to eliminate the value-added tax (VAT) and income tax withholding regimes applicable to payments made to sellers through various electronic systems (e.g., debit and credit cards, purchase cards, electronic wallets and similar payment processors). As one of the Argentine government's economic recovery measures, General Resolution No. 5554 nullifies the resolutions that established the VAT and income tax withholding regimes (i.e., General Resolution Nos. 140, 4,011 and 4,622, their amendments and supplements) and will apply to payments made from 1 September 2024.

Note that Article 102, Title VIII of Law No. 27,743, "Palliative and Relevant Tax Measures," establishes that entities that administer debit, credit and similar cards — among other processors of electronic payment methods — may only apply withholding tax if the amounts they process exceed the equivalent of 10,000 Acquisitive Value Units (Unidades de Valor Adquisitivo or UVAin Spanish) per month, per taxpayer (approximately US$12,000). However, based on General Resolution No. 5554, no VAT or income withholding tax should be applicable beginning 1 September 2024. (For additional background, see EY Global Tax Alert, Argentina enacts Bases Law and Tax Package," dated 8 July 2024).