Argentina Pais Tax Modification

As part of its new economic measures, the Argentine Government announced an adjustment to the PAIS tax which is paid mostly by importers on transactions that require accessing the foreign exchange market.

The PAIS tax, in force from December 2019 until December 2024, is levied on purchases made in foreign currencies. Even though it is officially aimed at financing social inclusion programs, it also intends to preserve foreign currency reserves at the Central Bank while fostering domestic production, investments and exports.

Through an Executive Decree dated December 13, 2023, the PAIS tax was increased from 7.5 percent to 17.5 for all goods, except for the following which are exempted: 
(i)     Medications and books in any format, 
(ii)    Firefighting and civil protection equipment,
(iii)   Inputs and intermediate goods linked to the basic food basket,
(iv)   Goods related to energy generation, and
(v)    Temporary imports to be processed in free trade zone areas.

For services, the tax is charged as follows:
(i)     Digital services:  8 percent (except for educational platforms and software for educational purposes),
(ii)    Logistics services:  17.5 percent (except for land transportation services for passengers to neighboring countries),
(iii)   Construction, financing, ICT, insurance, business and legal services:  25 percent, and
(iv)   All other services not detailed above:  30 percent.

For specific questions about product exemptions or any other general inquiries about Argentina’s current business climate, please contact us at Office.BuenosAires@trade.gov.