Freight tax

Non-residential shipowners and/or operators are subject to corporation tax on Argentine source income, which is normally levied in the form of a final withholding tax.

Corporation tax: 30% of taxable income, which is considered to be 10% of the outward gross freight (voyage charter) and/or the total hire (time charter and bareboat) paid by Argentinean companies to non-Argentinean/foreign companies (=3%).

Note: Prior to 2018 the corporate tax rate was 35%

Exemption Agreements

Residents of the following countries are granted full exemption unless otherwise noted.

Double Taxation Agreements

Country Reduction Date of entry into force Date of effect
Australia 1 100% 30/12/1999 01/01/2000
Belgium 2 100% 22/07/1999  
Bolivia 100% 04/06/1979  
Brazil 3 100% 07/12/1982 01/01/1983
Canada 4, 5 100% 30/12/1994 01/01/1995
Chile  100% 11/10/2016 01/01/2017
Denmark 100% 03/09/1997  
Finland 100% 05/12/1996  
France 6 100% 01/03/1981  
Germany 6 100% 25/11/1979  
Italy 6 100% 15/12/1983  
The Netherlands 2, 6 100% 11/02/1998  
 Mexico  100% 23/08/2017   01/01/2018
Norway 100% 30/11/2001 01/01/2002
Russia   16/10/2012 01/01/2013
Spain 6 (New agreement 12) 100% 23/12/2013 01/01/2013
Sweden 100% 10/05/1997  
Switzerland (Renegotiated) 
100% 27/11/2015 01/01/2015 Withhold tax
01/01/2016 Other taxes
United Arab Emirates 100% 04/02/2019 01/01/2020
United Kingdom 7, 8 100% 01/08/1997 01/01/1998
Limited Treaties (Air, Land and/or Sea)
Armenia 9 100%    
Azerbaijan 9 100%    
Belarus 9 100%    
Bosnia-Herzegovina 10 100%    
China 11 100%    
Colombia 100%    
Croatia 10 100%    
Cuba 100%    
Ecuador 0%    
Estonia 9 100%    
Georgia 9 100%    
Greece 100%   01/01/1946
Iran 100%    
Israel 100% 03/06/1982 01/01/1978
Japan 100%    
Kazakhstan 9 100%    
Kyrgyzstan 9 100%    
Latvia 9 100%    
Lithuania 9 100%    
Malaysia 100%   01/01/1994
Moldova 9 100%    
Montenegro 10 100%    
Paraguay 100%    
Peru 100%    
Portugal 100%   01/01/1946
Russia 9 100%    
Serbia 10 100%    
Slovenia 10 100%    
Tajikistan 9 100%    
Turkmenistan 9 100%    
Ukraine 9 100%    
United States 100%   01/01/1987
Uruguay 100%    
Uzbekistan 9 100%    
Venezuela  0%    
 Withdrawn double taxation agreements
 Austria  Ceased to apply as from 1 January 2009  
 Chile  Ceased to apply as from 1 January 2013  
 Switzerland 5, 6  Terminated as per Gazette dated 31/01/2012  
Double taxation agreements signed but not ratified
Austria  Signed 06/12/2019 Income and capital tax treaty   
Japan13  Signed 27/06/2019     
Luxembourg  Signed 24/06/2004  Limited Air & Sea Treaty  
Mexico Signed 04/11/2015    
Qatar Signed 19/04/2018 Income and capital tax treaty
 
United States Signed 07/05/1981    
Double taxation agreements under negotiation
Armenia      
Ireland      
Syria      

Notes

  1. The treaty provides that profits may be taxed in the other Contracting State to the extent that they are profits derived directly or indirectly from ship operations confined solely to places in that other State.

    The treaty also provides that profits derived from the carriage by ships of passengers, livestock, mail, goods or merchandise which are shipped in a Contracting State and are discharged at a place in that State shall be treated as profits from ship or aircraft operations confined solely to places in that State.
  2. The treaties provide that profits from the operation of ships in international traffic includes the charter or rental of ships on a bareboat basis provided that such charter or rental is incidental to the operation by that enterprise of ships in international traffic.
  3. The treaty provides that profits from international traffic derived by an enterprise engaged in ... shipping or inland waterways transport shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

    If the place of effective management of a shipping enterprise or of an inland waterways transport enterprise is aboard a ship or a boat, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship or boat is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship or boat is a resident.
  4. The treaty provides that profits derived from the operation of ships used principally to transport passengers or goods exclusively between places in a Contracting State may be taxed in that State.
  5. The treaties provide that profits from the operation of ships in international traffic includes the charter or rental of ships provided that such charter or rental is incidental to the operation by that enterprise of ships in international traffic.
  6. The treaties provide that profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

    If the place of effective management of a shipping enterprise is on board a ship, it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
  7. The treaty only applies to Great Britain and Northern Ireland and not to the Isle of Man, Channel Islands, nor other British colonies, possessions or territories.
  8. The treatry provides that profits from the operation of ships in international traffic includes income from the rental on a bareboat basis of ships where such rental is incidental to the operation of ships in international traffic.
  9. Covered under a limited sea and air transport treaty with the former Soviet Union.
  10. Covered under an Exchange of Notes (limited sea and air transport agreement)with the former Yugoslavia.
  11. This treaty does not apply to residents of Hong Kong, SAR; Macao, SAR or the province of Taiwan.
  12. The new agreement replaces the 1992 treaty that was terminated by Agrentina as from as from 1 January 2013.
  13. Once the treaty has entered into force and effective, the shipping and air transport agreement between Japan and Argentina from 1975 will terminate and will cease to apply.

Remarks 

Companies which apply for exemption from payment of Argentinean freight tax should bear in mind the following regulations as outlined by our sources:

"By resolutions 2066/78 of the Argentine Federal Tax Administration (AFTA) Companies of those claiming exemption from double taxation must produce an Argentina Tax Affidavit in the country where 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 register should be included in that affidavit.

All Documents must be visaed by the Argentine Consulate 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 "Argentina 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).

This statement is known as the '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 before me Mr ___ domiciled at ___ company director on behalf of ___ (name of the beneficiary of freight ) 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, official 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 Administracion Federal de Ingresos Publicos-Direccion General Impositiva in compliance with the requirements of the Resolution # 2066 of the ___ through their General Agents in the Argentine Republic Messrs. ..... domiciled at ..... (street, number, postal code)  __ (city).

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 Director 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 legalised by the Argentine Consulate.

Those countries which have signed the Apostille Treaty according to "The Hague Convention" do not need to have the document legalised by the Argentine Consulate.

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