Argentina: Temporary export tax of 12% and planned service export tax
When announcing emergency measures for Argentina`s dire economic situation on September 3rd, president Macri also introduced Decree No. 793/2018 which imposes a 12% export tax on all goods exported from Argentina that is to be enacted between January 1st, 2019 and December 31st, 2020.
The 12% tax will be imposed on the FOB export price for primary and agricultural goods with a cap of four pesos (ARS 4) per USD. All other products are capped to three pesos (ARS 3) per USD.
Furthermore, a similar service exports tax of 12% with a four peso cap per USD is planned by the Minister of Economy and supposed to be enacted by January 1st, 2019. However, this approach might be deemed unconstitutional.
Brazil: Amended protocol for income tax treaty between Brazil and Argentina approved
With Decree No. 9482/18 an amendment has been approved aimed at creating the following instruments to solidify the base erosion and profits shifting (BEPS) standards:
- reduced rates of 10% or 15% of income tax on payments of dividends, interest, or royalties
- double taxation: the exemption of dividends of companies from the same corporate group in Argentina is replaces by a crediting system in Brazil
- “limitation on benefits” clause
- new rules concerning permanent establishments (e.g. maintaining an already installed firm to develop it into an auxiliary does not constitute a permanent establishment)
Mexico: Proposal to impose income tax on gifts, inheritances and legacies
In Mexico, a revision of the income tax is planned as to include gifts, inheritances and legacies if they exceed 10 million pesos (approximately 521.000 USD). The planned tax is imposed on worldwide income except transfers between spouses or direct family members. Currently, such transfers are exempt from income taxation.