The Federal Administration of Public Revenues (AFIP) of Argentina began this week to approve requests to reimburse receipts for Earnings and Personal Assets for the year 2023 for the purchase of foreign currency and expenses abroad. There is no deadline for its management, and those employees who have not had withholdings in their pay slips during the same year and those not registered for the tax can apply for restitution.
The 35% advance payment of income tax paid when buying dollars or spending in foreign currency with a credit card – also known as “tourist dollars” – can now be refunded. These applies to transactions made between January and December 2023 for services obtained abroad, international flights, and other related expenses. Resolution 4815 can claim these refunds.
Employees subject to income tax withholdings in 2023 must declare their 2023 earnings in the SIRADIG so the employer can refund them in the annual settlement in May 2024. Those registered for the tax (whether employed or self-employed) can determine their earnings in the annual tax return filed in June 2024. Gains made between 23 November and 13 December will be included in the next tax return filed 2025.
Since January, the purchase of “dollar savings” has been taxed at 65%. As of 14 August, the income tax rate for this type of exchange was increased to 45%. On 10 October 2023, the “savings” and “tourist” dollars were unified into a single rate, with a total tax burden of 100%.
It is essential to highlight AFIP’s General Resolution 5450, published on 23 November, which increased the income tax levy for card payments from 45% to 100%. The exchange rate applied to card charges includes:
- The official exchange rate.
- 100% for income tax.
- 30% for PAIS tax.
- 25% for personal property tax.
On 14 December, the all-inclusive tax charge for the retail demand of foreign currency in banks was unified at 60%.
Those who can request the 2023 tax refund or reimbursement at AFIP are those not registered for income tax or personal property tax or registered for one but not the other. Also, those employees who are not subject to income tax withholdings by their employer or who have made the perception under code 219.
To request the refund, you must have a CUIT and a tax code level 2 or higher, inform the CBU of the bank account to which the refund will be made, and set up an electronic tax domicile.