On 8 July 2024, Law 27.743 on “Palliative and Relevant Tax Measures” (the “Tax Law“) was published in the Official Gazette, which creates regularisation and special income tax regimes and introduces amendments to the Income Tax Law (“IIGG“) and the Personal Assets Tax Law (“IIBB“). The most relevant points are the following:
Exceptional Regularisation Regime for Tax, Customs and Social Security Obligations:
- This includes all overdue obligations up to 31 March 2024, as well as offences committed up to that date, whether or not related to those obligations, even if they are under administrative or judicial discussion.
- The application for the regime can be made from the date of entry into force of the regulation of the Federal Administration of Public Revenues (“AFIP”) and up to 150 calendar days after such date.
- As in other regularisation regimes, certain obligations (such as contributions to the National Social Security System) and certain individuals (such as convicted persons with a sentence confirmed at second instance for customs and tax offences) are excluded.
- The regime offers the reduction of compensatory interests according to the moment and form of adhesion, and the cancellation of fines. Payment plans may be for 36, 48, 60 or 84 instalments, depending on the type of subject, with an initial payment of 15% to 25% of the consolidated amount of the debt.
Tax Amnesty:
- The regime includes residents in Argentina for assets existing as of 31 December 2023. Non-residents are excluded.
- The deadline for joining the Asset Regularisation Regime is 30 April 2025, with a possible extension until 31 July 2025.
- Three stages with a Special Regularisation Tax are established:
- Stage 1: 5%;
- Stage 2: 10%;
- Stage 3: 15%.
For amounts up to US$100,000, the rate is 0%.
- For the assets declared, the presumption of unjustified increase in assets will not apply, and the declarant will be exempt from civil actions and tax offences, as well as from the payment of national taxes applicable to those assets.
- Public officials, their immediate family members, and persons convicted of certain crimes are excluded.
Amendments to the Personal Property Tax:
- The non-taxable minimum is increased to $100,000,000 and to $350,000,000 for real estate intended for home-occupation, effective from the 2023 tax period.
- The rates are reduced in stages as from 2023, settling at 0.25% for 2027. The higher rate for assets abroad is eliminated.
- Taxpayers who complied with their personal property tax obligations from 2020 to 2022 will receive a reduction in the tax rate for the periods 2023, 2024 and 2025.
Special Regime for Personal Income Tax Income (REIBP):
- Applies to tax residents in Argentina as of 31 December 2023. Adherence can be made until 31 July 2024, with possible extension until 30 September 2024.
- Taxpayers adhered to the REIBP will be excluded from obligations under the IIBB for the tax periods 2023 to 2027 and will enjoy tax stability until 2038.
Repeal of the Real Estate Transfer Tax:
The tax is repealed as of the publication of the law in the Official Gazette.
Modifications to Income Tax:
1. Modifications in the computation of tax losses.
2. Repeal of exemptions on overtime and bonuses.
3. Increase of the non-taxable minimum.
4. Modification of the tax scale.
5. Abolition of the schedular tax on higher labour income.
6. Clarification of the regime applicable to petroleum workers.
Modifications to the Simplified Regime for Small Taxpayers:
- The parameters to be included in the regime are modified.
- As of 1 January 2025, the rules on VAT discrimination in transactions with final consumers and the publication of tax-free prices are modified.
Other Tax Measures:
Tax deductions for electronic payments to small taxpayers will be reduced.
