On August 21, 2024, the Ministry of Economy (“M.E.”), issued Resolution No. 780/2024 (the “Resolution”). This Resolution requires the Federal Administration of Public Revenues (“AFIP”) to eliminate the Value Added Tax (“VAT”) and Income Tax (“IG”) withholding regimes applicable to payments made to merchants, renters or service providers adhered to payment systems through credit, purchase, payment and/or debit cards (electronic payments), under certain conditions.
As a result, the AFIP issued General Resolution No. 5554/2024 (the “5554 Regulation”), repealed AFIP General Resolutions No. 140, 213, 1169, 1558, 3924, 4011, 4408, 4621, 4622, 4633, 4636 and 4841, all related to the withholding regimes mentioned above.
Among the main changes are:
- The VAT withholding regime applicable to merchants, renters or service providers adhered to payment systems through credit, purchase and/or payment cards.
- The GI withholding regime for payments made to merchants, lessors or service providers adhered to payment systems by means of credit, purchase and/or debit cards.
- The VAT and GIT withholding regime for parties that manage electronic payment and/or collection services on behalf and order of third parties, including through mobile devices or other electronic media, including virtual ones, applicable to settlements made to merchants, landlords or service providers for the use of such payment systems.
In addition, the remaining repealed regulations are detailed:
- AFIP General Resolution No. 213: Amends the VAT withholding and perception regimes to include subjects who do not credit any condition with respect to the tax or the simplified regime.
- AFIP General Resolution No. 1169: Amends RG 140 for transactions cancelled by means of access cards to accounts of financial entities governed by Law No. 21,526 and its amendments, applying a withholding rate of 1%.
- AFIP General Resolution 1558: Reduces the VAT withholding rate provided for in RG 140.
- AFIP General Resolution 3924: Excludes Micro Companies of the commerce sector from the withholding regimes, according to the provisions of Law No. 27,253.
- General Resolution AFIP 4011: Establishes a GI withholding regime applicable to payments made to merchants, renters or service providers adhered to payment systems by means of cards.
- General Resolution AFIP 4408: Amends RG 140 and 4011 to exclude tips from the withholding calculation basis.
- General Resolution AFIP 4621: Extends the Micro Companies exempted from the withholding regimes of RG 140 and 4011.
- General Resolution AFIP 4622: Establishes VAT and IG withholding regimes for subjects that manage electronic payment and collection services.
- General Resolution AFIP 4633: Excludes electronic services administrators from the regimes of RG 140 and 4011.
- General Resolution AFIP 4636: Amends RG 4622 to facilitate the application of the regime and extend the implementation terms.
- General Resolution AFIP 4841: Adapts RG 140, 4011 and 4622 in relation to the “Registration System”.
This measure is part of the Government’s plan to facilitate transactions made through means of payment that promote financial inclusion and to reduce the costs of payment systems.
The Resolution came into effect on August 21, 2024 and Regulation 5554 took effect on September 1 of the same year.
