Are you looking to expand your operations or international client base? If so, we may have some good news for you. Argentina has eliminated its PAIS tax, a 25% tax on the purchase of goods or services in a foreign currency.
To much consternation, the PAIS tax was extended in 2023 to include (re)insurance services. While this included both insurance and reinsurance services, as the Argentinian market operated mainly on a non-admitted basis, it was mainly reinsurance that was hit.
However, as of January, the PAIS tax has been eliminated, opening up opportunities for reinsurers to re-enter the market while also reducing local insurers' costs and opening up international markets such as London for their use.
So, if you start to see business coming in from Argentina over the coming months and weeks, don’t be surprised—just thank the end of the PAIS tax.
This information was taken straight from Axco’s Regulatory Alerts platform, which tracked the bill from the introduction of the PAIS tax to its proposed reduction and then, finally, removal.
If you want to stay up to date on news like this on international insurance markets across the globe, find out more about our Regulatory Alerts service here: https://www.axcoinfo.com/products/regulatory-alerts/
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