On December 26, 2025, the Senate of the Argentine Nation approved the “Fiscal Innocence Law” (the “Law”), which, among the multiple amendments introduced to tax regulations, creates a Simplified Sworn Statement Regime (the “Regime”).
This Regime is optional for the filing of Income Tax returns by individuals and undivided estates resident in Argentina.
Conditions to Access the Regime
To access this new Regime, the following conditions must be met as of December 31 of the preceding year and during the two (2) prior fiscal years, concurrently:
a) Income of up to ARS 1 billion.
b) Net worth of up to ARS 10 billion.
c) Not qualifying as a Large National Taxpayer, as determined by the Revenue and Customs Control Agency (Agencia de Recaudación y Control Aduanero – “ARCA”).
d) The Executive Branch may establish additional requirements.
Non-Compliance
If ARCA verifies non-compliance with any of the requirements, the taxpayer shall be excluded from the Regime, and ARCA may:
a) Verify and/or audit non-time-barred periods.
b) Assess the taxable base ex officio.
c) Assess and collect any differences.
d) Apply penalties, where applicable.
Discharging Effect of Payment
Once the taxpayer accepts the simplified tax return proposed by ARCA and pays the tax within the applicable deadline, the obligation shall be deemed fulfilled both formally and substantively with respect to Income Tax for the relevant period (discharging effect of payment), unless the following are subsequently verified:
a) Omission of declared income.
b) Improper deduction claims.
c) Use of false or sham invoices or other documents.
Presumption of Accuracy
Income Tax and VAT returns filed for non-time-barred periods shall enjoy a presumption of accuracy, without admitting evidence to the contrary, except where ARCA challenges the simplified return for the most recent period due to a significant discrepancy, in which case it may exercise verification powers over non-time-barred periods.
The Law defines significant discrepancy as:
a) An increase in tax payable in favor of the Treasury or a reduction of tax losses or tax credit balances of no less than 15%.
b) A difference exceeding the threshold set forth in Section 1 of the Tax Criminal Regime (ARS 100 million).
c) The use of false or sham invoices or other documents resulting in an increase in tax payable or a reduction of tax losses or tax credits, which are not rectified by the taxpayer upon challenge and where the differences, plus interest, are not paid.
The Law provides that, insofar as the presumption of accuracy applies, taxpayers are released from all civil actions and from liability for tax and customs crimes and administrative offenses.
Exclusion from Audit
For purposes of assessing the existence of a significant discrepancy with respect to VAT and Income Tax, the provisions relating to unjustified increases in net worth shall not apply.
Extension of Audit
If a significant discrepancy is verified, ARCA may extend verification and/or audit proceedings to non-time-barred periods and may assess the taxable base ex officio, determine differences, and apply penalties.
Such extension of audit shall not apply in the following cases:
a) Taxpayers who opted for the simplified regime in a given fiscal period, complied with the requirements, and benefited from the discharging effect of payment and the presumption of accuracy, even if they are no longer included in the Regime in subsequent periods.
b) Taxpayers who adhered to the Asset Regularization Regime under Law No. 27,743, with respect to the periods covered by Section 34 thereof.
This Regime entered into force on January 2, 2026.
