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Argentina Updates Rules for Late Payment Interest Rates and Refund Interest Rates — Orbitax Tax News & Alerts

Argentina has published Resolution 598/2019 of 16 July 2019 in the Official Gazette, which updates the rules provided in Resolution 50/2019 on new interest rates for outstanding tax debts ({News-2019-02-27/A/2-previous coverage}). Resolution 50/2019 changed the rates so that compensatory and punitive interest rates would be equal to 1.2 times and 1.5 times, respectively, of the monthly equivalent of the annual nominal rate of 180-day fixed-term deposits in pesos of the National Bank of Argentina (Banco de la Nación Argentina). Resolution 598/2019 maintains these rules, and also adds that if the tax debt is denominated in USD, the monthly compensatory and punitive interest rates are instead 0.83% and 1.0%, respectively.

Resolution 598/2019 also adds that for the return, refund, or compensation of taxes by the Treasury, the interest rate is equal to the monthly equivalent of the average passive rate published by the Central Bank of Argentina (Banco Central de la República Argentina) for the 30-day period ending 20 days before the respective quarter. Where the return, refund, or compensation is denominated in USD, the monthly rate is 0.20%.

Resolution 598/2019 is effective from 1 August 2019.