The Ar$ 4 limit on export duties over export of services is no longer in force

The Official Bulletin of Saturday, December 28, 2019 published Decree 99/2019 ruling Law 27,541 (Law of Public Emergency and Social Solidarity), whose article 52 establishes that the export duties on services may not exceed 5%.

Decree 99/2019 modifies Decree 1201/2018 to adjust the level of withholdings to 5% established in the Public Emergency Law, and erases the limitation of $ 4 per dollar exported originally contained in article 2 of Decree 1201/2018. Further, Decree 99/2019 extends the validity of export duties on services until December 31, 2021, instead of the original term until December 2020.

The rest of the provisions of Decree 1201/2018 are not modified, so the provisions established in relation to SMEs and exporters with annual operations of less than USD $ 2M remain in force. Particularly, export duties to exports of other types of intangibles are not extended, which is why the income generated by software licensing to entities abroad is kept outside the scope of the mentioned decrees and export duties there established.