ARGENTINA

On September 24, the Executive Branch announced the reduction to 0% of export duties on services produced in the country and consumed abroad. This measure, which has not yet been published in the Official Gazette, will be implemented as from January 1, 2022. It is intended for the “knowledge-intensive business services”.

The Minister of Economy Martín Guzmán and the Minister of Production Matías Kulfas announced the elimination of withholding taxes on the export of services. This tax treatment is already in force for companies registered in the regime for the Promotion of the Knowledge Economy (Law 27570). According to the information provided by public officials, from next year it will be extended to all exporters of the service sector. Among the services highlighted by the Executive Branch are professional, programming, IT and design services. 

The Minister of Economy assured that “this measure strengthens the knowledge economy sector, which is a key in the construction of an Argentina with more productive dynamism, jobs and macroeconomic stability”. In addition, Guzmán considered that “the elimination of these withholdings reverses the fiscalist and anti-productive decision adopted in 2018, which, for the first time in history, imposed customs taxes on the sector”.