PAIS Tax Rate Reduction on Imports: What You Need to Know

Date of Publication: 02/09/2024

Today’s Official Gazette published Presidential Decrees No. 777/2024 and No. 779/2024, which establish significant changes in the PAIS tax rate applicable to the importation of goods. These changes are of particular relevance for companies and professionals involved in international trade. The most important aspects of these changes are detailed below:

Reduction of the PAIS Tax Rate.

The PAIS tax rate has been reduced from 17.5% to 7.5% in the following cases:

1. Acquisition of Freight and Transportation Services: The reduction applies both to services acquired abroad and those rendered by non-residents in the country.
2. Import of Goods: It covers goods included in the Mercosur Common Nomenclature (N.C.M.), with specific exceptions, such as:
   • Sumptuary Goods: Defined in Annex I of PEN Decree No. 99/2019.
   • Fuels and Related Products: Identified with specific NCM codes.
   • Basic Food Basket Products: Detailed in Resolution No. 1183/2023 of the Secretariat of Commerce.
   • Energy Goods: Related to energy generation according to Resolution No. 671/2023 of the Secretariat of Energy.
   • Specific Infrastructure Projects: Such as the President Néstor Kirchner Gas Pipeline.
   • Medicines, Books and Civil Protection Materials: Exempted according to the regulations in force.

Application and Payments on Account

The Maria Computer System (SIM) will automatically apply a payment on account of 95% on the reduced rate, resulting in an effective value of 7.125%. In addition, imports for consumption of goods under the temporary import regime will be subject to the same rate.

Inmediate Implementation

Since these Decrees come into force today, 02/09/2024, the Federal Administration of Public Revenues (AFIP) has already implemented the corresponding adjustments in the SIM. As of tomorrow, 03/09/2024, foreign exchange purchase transactions for the above mentioned activities will be subject to the new 7.5% tax rate.

These modifications are essential for all international trade players in Argentina, as they directly affect import costs and financial planning. Stay informed about any new regulations that may arise from the implementation of these decrees.