Argentina Ends Foreign Currency Tax Impacting Reinsurance Cessions and Retrocessions
As of December 22, 2024, Argentina ended its foreign currency tax (Impuesto Pias), which removes a 25 percent charge on all Argentinian products and services purchased overseas with a foreign currency, including reinsurance cessions and retrocessions.
While not directly impacting employee benefits, the elimination of the Impuesto PAIS tax for certain imports and services may have some indirect positive effects:
- Reduced costs for businesses overall, which could allow for more investment in employee benefits.
- Simplified financial processes for companies operating internationally.
Future Considerations
Employers should keep in mind that Argentina’s tax landscape is evolving:
- The government has announced plans for further tax cuts and deregulation in 2025.
- There may be additional changes to social security contributions and other employment-related taxes.
Employers should stay informed about upcoming tax reforms affecting employee benefits or overall employment costs in Argentina. Consulting with local tax experts or benefits advisors may help navigate any future changes in the Argentine tax system that could impact employee benefits.
If you need support with your employee benefits in Argentina, please get in touch with Asinta, and we will connect you with the local experts at Makler.
Sources
EY – Argentina eliminates payments on account of Impuesto PAIS for imports of goods
BDO Global – Argentina – Tax Rate on Certain Foreign Currency Transactions Reduced
Kennedys – Update on Argentinean Legal Framework for Payment of Reinsurance Premium