Taxation / Affidavit

Taxes in Argentine affecting overseas shipping
Freight tax summary for Argentina:
Income Tax on Freights:
                               
Argentine government considers that all freights earned on export cargoes from Argentina are presumed to have a profit of 10% and therefore this 10% profit is levied with a 35 per cent income tax. That is to say that the company who is the legal beneficiary of the freight (i.e. Ship Owners or time charterers or other) is responsible for the payment of 3.5% of the total gross freight earned..

In case of payments done from Argentina, the remitting bank will automatically effect the deduction of the tax prior remittance. In case of payments done abroad, the responsible party in front of Tax Authorities will be the nominated Ship Agent acting during the call of the vessel in that particular time.

Exemption agreements

The companies 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

 

Austria

22.589

 

Belgium

24.850 and

Notes exchanged

Bolivia

21.780

 

Brazil

21.560, 22675 and

Notes exchanged

Canada

24.398 and

Notes exchanged

Chile

23.228 and

Notes exchanged

Colombia

 

Notes exchanged

Cuba

22.295

 

Denmark

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(4)

25.830

 

Norway

25.461 and

Notes exchanged

Netherlands

24.993 e

Notes exchanged

Paraguay

25.184

 

Peru

 

Notes exchanged

Portugal

 

Notes exchanged

Popular Republic of China (1)

 

Notes exchanged

Spain

22.571, 24.258 and

Notes exchanged

Sweden

24.795 and

Notes exchanged

Switzerland

 

Notes exchanged

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)


>              

  Bosnia/Herzegovina
  Croatia
  Slovenia
  Yugoslav Federative Republic
  Serbia- Montenegro

(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 ti the United Kingdom and Northern Island and does not apply to the Island of Man, the Channel Islands nor other British colonies, possessions or territories.
(3) The list of these countries has been provided by the Argentine Foreign Officer through their letter Ditra 92/95, dated April 11, 1995.
(4) The treaty is effective since January 15, 2004 but in accordance with its article 9.2 it will be in force as from January 1 st, 2005. 

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 the 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 statement is known as affidavit and its text is roughly along these lines:

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 capacity 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 Revenue Services) in compliance with the requirements of General Resolution 2066 of August 1 st, 1978 and Circular 1070 of October 12 th, 1978, through their General Agents in the Argentine Republic Messrs...................... domiciled at....... (street, number, postal code, city and country)

The acting 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 signature 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 5 th, 1961 the document need not be legalized by the Argentine Consulate.

VAT
No Value Added Tax is levied against vessels´ port disbursements.

Tax on debits and credits in financial transactions:

Law Nº 25.413, in force as from March 26, 2001, established a charge of 6 per mil (0.60%) applicable on every credit on bank accounts.