Introduction to Taxes

The Argentinian Taxes module handles the calculation and collection of the Argentinian federal and jurisdictional taxes. The federal taxes of VAT and bank transaction tax are set at a national level, while the jurisdictional taxes of Stamp tax and Turnover tax are set at the provincial level. The taxes cover Argentinian resident individuals. The Argentinian Tax module is built on the Temenos Transact Tax Framework and handles both default tax rates as well as exemptions and exceptions at a customer level. The customer tax exemptions are stored on the Customer file and are therefore available for the bank to view at any time. In the case of transaction tax, exemptions are allowed at an account level.

The Taxes module can be used standalone or it can be integrated with the padrons Microservices, but the padron Microservice database is not mandatory.

The Argentinian Taxes module consists of both code and considerable configuration to meet the tax rules. Temenos will supply standard products with full tax setup. As Taxes is a regulatory maintenance module, it is owned by Temenos and we have upgrade it as required to keep in line with changing regulations.

• Temenos supplied configurations are owned and maintained by Temenos and should not be changed locally by the bank.
• The bank has the ability to attach taxes to their products plus to make temporary changes to reflect fast changing regulations.

Temenos will provide the ability to map the products, properties, and activities created by the bank with the Argentinian standard products, properties and activities delivered. Through these mappings, it is possible that the standard exemptions configured can be used without the need to create new configuration records in the Exemption Framework.

Click here to see the details of the preconfigured standard products delivered.

The following will be delivered as part of the Taxes module:

• Standard Argentina products: savings account, UVA deposit, non-instrumented loan, instrumented loan.
  • All standard products are fully configured, for both taxes and for the other Argentinian requirements.
  • In general there is no additional manual tax configuration required for the standard Argentina products.
• All tax parameterisation (TAX.TYPES, TAX.GEN.CONDITIONS, ACTIVITY.CHARGE, etc) are configured on the standard supplied Argentinian products.
• Pre-configured jurisdictional exemptions are delivered by Temenos and can only be changed by Temenos.

The bank can:

• Apply tax to a bespoke bank product:
  • No changes are required if the bank uses the ARMB supplied properties. Configuration are required for bank specific properties.
  • A new facility is available to allow the bank to apply all the standard exemptions to their bespoke product.
• Make new bank interest types, charges and activities taxable.
• Setup temporary or bank specific jurisdictional exemptions, to accommodate:
  • Urgent changes to tax rules.
  • Bank specific charges and interest conditions.
  • Bank specific activities.
• Make changes to tax rates.

Click here to understand the terms and abbreviations used in this module.