Tax Affidavit

Taxes in Argentina affecting overseas shipping

Freight tax summary for Argentina

Income Tax

The rate of the tax is 35% of the presumed net profit of 10%, that is to say, 3,5% on the total gross freight or passage. The income tax is levied on freight earned in the case of cargoes loaded at Argentine ports, and levied against time charter hire paid by Argentine companies to non Argentine/foreign companies (unless a tax exemption agreement is applicable)

Exemption agreements

The countries constituted in the following countries are exempted from paying the Argentine income tax on freight:

 

Country According to the following laws or notes exchanged
Australia 25.238
Belgium 24.850 and Notes exchanged…
Bolivia 21.780
Brazil 21.560, 22.675 and Notes exchanged…
Canada 24.398 and Notes exchanged…
Colombia Notes exchanged…
Cuba 22.295
Denmark 24.838 and Notes exchanged…
Finland 24.654 and Notes exchanged…
France 22.357 and Notes exchanged…
Germany 22.025 and 25.332
Great Britain and Northern Ireland (2) 24.727 and Notes exchanged…
Greece Notes exchanged…
Iran 23.725
Israel 22.596
Italy 22.747
Japan 21.386 and Notes exchanged…
Malaysia 25.398
Mexico 25.830
Norway 25.461 and Notes exchanged…
Netherlands 24.993 and Notes exchanged…
Panama 25.953
Paraguay 25.184
Peru Notes exchanged…
Portugal Notes exchanged…
Popular Republic of China (1) Notes exchanged…
Spain 26.918
Sweden 24.795 and Notes exchanged…
Switzerland 27.010
United States 24.399 and Notes exchanged…
Uruguay Notes exchanged…
Former USSR (3) 22.378
• Armenia
• Azerbaijan
• Belarus
• Estonia
• Russia
• Georgia
• Kazakhstan
• Kyrgyzstan
• Letonia
• Lithuania
• Moldova
• Tadjikistan
• Turkmenistan
• Ukraine
• Uzbekistan
Former Yugoslavia (3) Notes exchanged…
• Bosnia/Herzegovina
• Croatia
• Slovenia
• Yugoslav Federative Republic
• Serbia- Montenegro

Table references

(1) This treaty applies only to residents of China. This treaty does not apply to companies constituted in Hong Kong, SAR or the islands of Kinmen, Matsu, Penghu and Taiwan.

(2) The treaty applies to the United Kingdom and Northern Island and does not apply to the Island of Man, the Channel Island nor other British colonies, possessions or territories.

(3) The list of these countries has been provided by the Argentine Foreing Officer through their letter Ditra 92/95, dated April 11, 1995.

Comments

Companies which apply for exemption from payment of Argentine freight tax should bear in mind the following:

By Resolution 2066/78 of the Argentine federal Tax Administration (AFTA) companies claiming exemption from double taxation must produce the “Argentine Tax Affidavit” in the country with which the agreement is signed, certifying that the direct beneficiary of the freights or passages is constituted in that country. The ship’s nationality and port of registry should be included in that affidavit

All documents must be visaed by the Argentine Consul or Apostille

Agents or representatives must present to AFTA (at regular monthly intervals) details concerning beneficiaries of freights and passages, including name, nationality, port of registry, official number, sailing date, port of departure and destination of vessel (s).

In cases which do not qualify for tax exemption, agents are of course responsible for the collection and payment of the tax.

The above “Argentine Tax Affidavit” must be substituted to advantage by producing a certified statement testifying to the existence of the beneficiary of freight and of their respective ship (s). The statements is known as affidavit and its text is roughly along these line:

On this ……………………….. day of the month of ……………………….. of the year ……………………….. before me Notary Public resident in ……………………. (City & Country) ……………………. appeared Mr ……………………….. domiciled at ……………………….. company director on behalf of ……………………….. (Name of the Shipowner or Disponent Ownership Company) domiciled at ……………………….. who in the aforesaid capacitry states:
That the ……………………….. (Name of the Company) ……………………….. is the ……………………….. (Owner or Disponent Owner) ……………………….. of the following ship(s) assigned by it to the maritime traffic with the Argentine Republic:

Vessel      Nationality/Flag      Port of Registry      Register Number

That the aforesaid Company is the direct and final beneficiary of the profits arising out of the freights and/or passages which are received for the vessel (s) mentioned above.

That (he) makes this declaration to be presented to the “Administración Federal de Ingresos Públicos” of the Argentine Republic (Internal Renvenue Service) in compliance with the requirements of General Resolution 2066 of August 1st, 1978 and Circular 1070 of October 12th, 1978, throught their General Agents in the Argentine Republic Messrs ……………………….. domicilied at ……………………….. (street, number, postal code, city and country)

The Activing Notary Public certifies that the information hereby given is authentic, which I attest, and that the Company ……………………….. is legally constituted in accordance with the laws in force in ……………………….. and is registered in the Commercial Register of the City of ……………………….. under number ……………………….. having at the above mentioned address its Legal and Central Administration and that Mr ……………………….. is a President/Director/Attorney sufficiently empowered to represent the said company and to make this declaration.

Signature and seal of the Notary Public

The above Notary´s sgnature must be authenticated by a local authority and legalized by the Argentine Consulate. It is advisable that, whenever possible, said document is submitted together with a certification by the tax authority acting at the place of issue.

In the case of those countries which have signed the Apostille Treaty according to the “The Hague Convention” of October 5th, 1961 the document need not be legalized by the Argentine Consulate.

VAT

No Value Addet Tax is levied against vessel´s port disbursements.

Tax on debits and credits in financial transactions:
Law Nº 25.413, in forces as from March 26, 2001, established a charge of 6 per mil (0.60%) applicable on very debit and every credit on bank accounts.