The Tax Reform project that the Minister of Finance, Nicolás Dujovne, will present to Congress includes in its article 115 a "5% tax on the amount billed for the provision of cellular and satellite telephone service to the user".
Currently it is 4%. The reform also proposes to tax with 15% the profits of the operations with cryptocurrencies. And it establishes to charge the VAT to "any electronic service comprising download, visualization or use by Internet network" including applications and OTT such as Neflix, Spotify or even Tinder. VAT will also reach digital newspapers, remote education, game downloads and software provision.
The reduction of taxes on electronic items will be gradual: a rate of 10.5% for goods included in the Mercosur Register, which will be extended until 2024. Up to said date, it will be maintained the protection of the manufacturers of Tierra del Fuego reached by Law 19,640, which will continue with a zero rate. Yesterday the National Executive, the Province of Tierra del Fuego, the Workers' Unión Obrera Metalúrgica (UOM) and the Asociación de Fábricas Argentinas Terminales de Electrónica (AFARTE) (Association of Argentine Electronic Terminals Factories) signed the agreement. It contemplates tax rebates and deferral of collective bargainings in exchange for not dismissing any of the 8,000 workers in the sector. The Government committed to lower production costs and a greater control to eliminate smmugling.