1. Localizations for Argentina Implementation Guide
  2. Understanding Withholding for Security Services

Understanding Withholding for Security Services

The statutory regulation 1769 establishes a requirement that companies withhold taxes for vendors providing security services. The withholding requirements apply to amounts that exceed the threshold amount for a supplier during each month. Initially, the threshold is set at eight thousand pesos, so the withholding applies to amounts over eight thousand pesos.

The regulation does not require companies to withhold taxes for the payment of security services when the payments are made in a nonmonetary format. For example, if the supplier receives goods in exchange for security services, no withholding taxes are calculated on the value of the goods received.

The system calculates the withholding tax by subtracting the VAT and discount amounts from the gross amount. If the accumulated adjusted taxable amount for a month exceeds the threshold, the system applies the tax.

The system stores information about the withholding in the Security Withholding Payments (F76A0456) table. The stored information includes:

  • Company

  • Supplier

  • Security withholding concept

  • Month and year

  • Taxable amount

  • Withholding amount

When you use automatic payment processing to update payments, the system runs the Security Services Withholding Certificate program (R760457A) to issue a withholding certificate to each supplier for each month for which you withhold taxes for security services. The certificate includes:

  • Issue date and next number.

  • Name, address, and fiscal ID (clave única de identificación tributaria [CUIT]) of the withholding agent.

  • Payment number.

  • Name, address, denomination, and fiscal ID (CUIT) of the supplier.

  • Legal number and legal document type for the document that originated the withholding.

  • Amount on which the withholding was calculated.

  • Withholding concept description from the Administración Federal de Ingresos Públicos (AFIP).

  • Withholding amount.

  • Signature lines for the signature of the withholding agent.

Use the Services Withholding Certificate program to reprint the certificate as necessary.