The Argentine government has updated the tax base for internal taxes on automobiles, motorcycles, boats, and aircraft through a resolution published by the Revenue and Customs Control Agency (ARCA). This change affects what is known as the ‘luxury tax,’ impacting only the priciest vehicles sold in Argentina.
Key Takeaways
- The luxury tax now applies exclusively to high-end vehicles, with a threshold of 74.314.009 pesos for cars and 15.924.979 pesos for motorcycles.
- The previous dual-tiered tax system has been suspended but remains in place until June 30, 2027.
- Only vehicles priced at or above 120 million pesos for cars and 25 million pesos for motorcycles will be subject to the current luxury tax rates.
The modification comes after a period where the first tier of internal taxes impacted popular models like Chevrolet Cruze, Peugeot 2008, and Toyota SW4. This initial tier was suspended in January last year, leaving only a second-tier tax with reduced rates.
Under the new system, cars exceeding 74.314.009 pesos will face an 18% tax rate, while motorcycles above 15.924.979 pesos are taxed at 15%. The changes ensure that the luxury tax now focuses on high-end vehicles rather than affecting mainstream models.
The government has been considering eliminating internal taxes for vehicles altogether but no official decision has been made yet. Until then, this new system will remain in effect, impacting only a small segment of the market.
Frequently Asked Questions
When does the suspension of the first-tier tax end?
The current suspension is set to expire on June 30, 2027. After this date, the government will reassess whether to continue with the current system or make further changes.
Which vehicles are exempt from luxury tax?
Vehicles priced below 120 million pesos for cars and 25 million pesos for motorcycles are generally exempt from the luxury tax under the new regulations. This includes most domestically produced models and imported vehicles.
The latest modifications to internal taxes aim to reduce market distortion caused by previous high rates on popular vehicle models, focusing instead on a more targeted application of luxury taxation.
