The Argentine government announced on September 24 that it will eliminate the tax on exported services beginning in 2022.
The tax on exported services was introduced in 2018 at a rate of 12%. The applicable rate was partially reduced in 2019 and then further reduced in 2020 to a 5% rate. In 2021, an exemption was established for companies adhering to a regime for promotion of the knowledge economy.
As of January 1, 2022, the duty will be fully phased out.
The government contends that eliminating the tax will benefit the knowledge-intensive services sector in the country. It claims the tax on exported services, enacted as a fiscal measure by the previous administration, is counter-productive from an economic standpoint.
Argentina’s service industry – consisting of information technology, professional services, design, and other services – exported a total of USD 5.7 billion in 2020, making it the country’s largest export after cereals and oil seeds. The main destinations for the services were the US and EU.
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