The rate of the tax is 3,5% on the total gross freight . The income tax applies on freights earned for cargoes of Argentine origin loaded at Argentine ports, (the final freight beneficiary may apply for tax exemption when the agreement is applicable see the list of countries).
The companies constituted in the following countries are exempted from paying the Argentine income tax on freight:
Australia, Belgium, Bolivia, Brazil, Canada, Chile, China, Colombia, Cuba, Denmark, Ex USSR, Finland, France, Germany, Greece, Holland, Iran, Israel, Italy, Japan, Malasia, México, Norway, Panama, Paraguay, Peru, Portugal, Qatar, Spain, Sweden, Switzerland, UAE, United Kingdom, United States, Uruguay.
The tax affidavit has a validity of 15 months, all your port calls in Argentina during said period will be covered by one document. Thereafter a new one must be drawn.
A certification of company’s Fiscal Residence legalized by Notary and Apostille is the relevant document to apply for exemption of double taxation.
To apply for exemption from payment of Argentine freight tax a Company has to follow:
By resolution of the Argentine Federal Tax Administration (AFIP) companies claiming exemption from double taxation must obtain the “Tax Affidavit” in the country with which the agreement is signed, certifying that the direct beneficiary of the freights is constituted and tax domiciled in that country.(irrespectively of the vessels flag).
The freight beneficiary must certify that he is a taxpayer in his country of residence.
Foreign owners and or operators claiming exemption are required to provide certified documentation from its country of residence ; an Affidavit must be provided to the Ship Agent for filing with argentine tax authority and/ or to the Argentine freight payer to avoid their bank deducting 3,5% when remitting. The freight invoiced to Argentina source must be issued named by the same firm.
All documents must be legalized by Notary Public and Apostille for international validity (Apostille or visaed by the Argentine Consulate).
In cases which do not qualify for tax exemption, Ship Agents are responsible for the collection and payment of the tax.