ANNOUNCED AS TEMPORARYNo
On 31 December 2014, the government of Argentina published Resolution 1077/2014, which overhauls the export tax treatment of crude oil and related products.
The new regime maintains the pre-existing structure of the taxes. That is, export taxes on crude oil and related products are calculated as a function of the international oil price as well as a reference price set by the Argentinian government. The tax rate is constant as long as international oil prices are below the reference price. Once they exceed the reference price, the export tax rate increases along with the international oil price.
The new regime applies to changes from 1 January 2015. First, the reference value is increased to USD 70 from USD 42 in the original regime. Furthermore, the government substracts USD 8 from the international oil price prior to the calculation of the tax rate. This reformulation reduces the export taxes for any oil price above the original threshold.
Second, the constant tax rate applied below the reference value is reduced to a common 1 percent, down from 10-13 percent depending on the product. This change thus also reduces the expor taxes for any oil price below the original threshold.
⚑ Please report this page in case you detect an inaccuracy in its content.