Argentina Imposes 35% Withholding Tax on Dollar Purchases

Argentina is imposing a 35% withholding on purchases of U.S. dollars as it strives to prop up the Argentine peso, which has nearly halved in value over the last two years.

According to regulations published Wednesday by the tax authority, the Administración Federal de Ingresos Públicos (AFIP), the withholding will apply to deposits of U.S. dollars and to overseas card payments.

The withholding won’t apply to purchases of healthcare services, pharmaceuticals, books, online education services, fire protection equipment or spending related to research projects.

Taxpayers who aren’t liable for income tax or the tax on personal assets ...