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Argentina Introduces New Late Payment Interest Rates Based on National Bank Rates — Orbitax Tax News & Alerts

Argentina has published Resolution 50/2019 of 7 February 2019 in the Official Gazette, which provides new interest rates for outstanding tax debts. Under prior rules, compensatory interest at the rate of 3% per month applies for late payment, which is increased to a 4% punitive interest rate in cases where the collection of outstanding tax debts has been referred to the courts for enforcement. The resolution includes that these rates must be updated to reflect current economic conditions in order to encourage taxpayers to fulfill their payment obligations and prevent delinquent taxpayers from financing their activities through non-compliance with taxes.

For this purpose, the resolution provides that monthly interest rates will be set quarterly based on the annual nominal rate of 180-day fixed-term deposits in pesos of the National Bank of Argentina (Banco de la Nación Argentina) as in force on the twentieth of the month immediately prior to the beginning of the referred quarter:

  • For compensatory interest, the rate is equal to 1.2 times the monthly equivalent of the National Bank rate; and
  • For punitive interest, the rate is equal to 1.5 times the monthly equivalent of the National Bank rate.

The resolution enters into force on 1 March 2019 and will be effective from 1 April 2019. For the period 1 March 2019 to 31 March 2019, compensatory and punitive interest rates are set at 4.5% and 5.6%, respectively. The new monthly interest rates based on the National Bank rate will be published at the beginning of each calendar quarter on the AFIP website (http://www.afip.gob.ar).