Decree 280/2019 provided for the exemption of the export duty in force since September 2018 – decree 793-. Such tax exemption is not only limited to a certain universe of subjects that must recognize the character of “Micro, Small and Medium Enterprises” but also limits its application to predetermined amounts.
Indeed, this tax relief has not only been limited to certain exporters, but also to those subjects who can obtain the status established by the law to obtain the benefit, they will also be restricted from using the tax advantage on the condition of generating greater exports, even though the exemption will be limited to a limit.
That is to say, the scope of this measure regarding the export right is presented more as an “export stimulus” than a direct tax relief on exports. In fact, this is established by decree 280/2019, which states: "The National Government's priority objective is sustained growth, competitiveness and increased employment, for which the promotion of exports is a very useful tool.".
This is supported by the fact that not only must certain requirements be met, but there is also a major limitation to the scope of such benefit. To such an extent that exports of services were taxed with the export duty by decree 1201/18, which by the way happen to be mostly exporters of the SME and/or Micro enterprise type, and are not exempt from the withholding.
In this sense, the rule, while still encouraging, establishes a partial tax relief adjusted to a series of limitations that expose the presence of a potential and demarcated export benefit.
Questions and answers about tax exemption
Are all exports covered by this tax relief?
No. It is only for exports from companies that meet the condition of Micro, Small and Medium Enterprises (MSMEs) and are registered as such under the terms of Law 24467.
Is this the only requirement?
No. Even though they may be included in this category of companies, it will be limited to those that have not exported more than US$50.000.000 in the immediately preceding calendar year.
Will all export operations benefit from this tax relief?
No. Only exports that exceed, in terms of their FOB value, those made by each company in the immediately preceding calendar year.
Does the limitation of US$4 or US$600.000, as the case may be, correspond to the taxable base value or the amount of export duty?
Although it may generate a state of confusion when referring to the limit of the “annual amount subject to tax relief” mentioned in article 1, paragraph a) and b) of decree 335/2019, we understand that the considerations of the norm itself reflect the answer by indicating: “That within the framework of a fiscal policy of convergence towards fiscal balance, reasons of prudence advise set a limit on the annual amount subject to tax relief…”. Therefore, when referring to the “annual amount subject to tax relief”, it refers to the value that serves as a basis for determining the tax, making it possible to benefit under the terms of the decree that provides tax relief. In this case, it is limited to US$ 600.000 for those companies that have met the requirements and made exports in the previous year and/or US$ 300.000 for companies that exist at the time of publication of the regulation and, although they have met the requirements, have not exported in the immediately following year.
For an exporting company to benefit from the tax relief, it must meet the following conditions:
- Be covered subjects and registered as Micro, Small and Medium Enterprises.
- They must not have exported more than US$50.000.0000 in the immediately preceding calendar year.
- They must export a higher value than those made in the previous calendar year.
- Only those transactions that exceed the value of those registered in the immediately preceding calendar year, with a maximum of US$600.000, will be eligible for tax relief.
- The limit will be US$300.000 when it concerns a subject that, although it is covered by its status as an SME and existing at the time of publication of the decree, has not exported in the immediately preceding calendar year.
By: Dr. Guillermo Felipe Coronel, Member of the Institute of Customs Law and International Trade of the Argentine Association of Constitutional Justice
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
