On December 1, 2022, the Official Gazette published Law 27,701, the law that approves the General Budget of the Public Administration (the “Budget”). This law, approved by the National Congress and enacted by the Executive Power, introduced, among other provisions, a series of tax modifications.
- Education expenses:
A deduction in income tax for education expenses is incorporated, effective as from fiscal year 2022 inclusive.
Deductions may be made for services for educational purposes and educational tools paid by the taxpayer for his children or stepchildren under 18 years of age and over 18 years of age who are in regular studies.
The amount of the deduction is limited to 40% of the amount of the minimum non-taxable income, regardless of the number of children or stepchildren.
- Program for declaration of undeclared foreign currency for construction
The possibilities of use of the funds for the acquisition of a used real estate property, which is used: (a) exclusively for housing the declarant and his family; (b) for a term of not less than 10 years, for the lease of the property exclusively for housing the tenant and his family.
The value of the acquisition of the real estate must be equal to or less than 2 times the non-taxable minimum for real estate intended for housing, as provided by the Personal Property Law, in force as of December 31 of the tax period immediately preceding the acquisition.
- Undeclared foreign currency declaration program for investment and production
The budget creates the Investment and Production Incentive Regime, by means of which residents of the Argentine Republic may voluntarily declare before the Federal Administration of Public Revenues (“AFIP”) their foreign currency holdings in Argentina and abroad within a term of 360 calendar days.
The funds must be deposited in a Special Deposit and Cancellation Account for Argentine Investment and Production, and must be used for the remittance of foreign currency for the payment of imports for consumption, including services, destined to productive processes.
The rates of the excise tax on the value of the declared holding will be 5%, 10% and 20%, depending on the date of entry of the funds to the special account.
- Deferral of inflation adjustment:
Those who have made investments in property, plant and equipment (except automobiles) for more than $30,000 million and their tax inflation adjustment is positive in the first and second fiscal years beginning on or after January 1, 2022, may impute 1/3 in the tax period of the adjustment and the remaining 2/3 in equal parts (without restatement) in the following two fiscal periods.
- The “Montributo” regime
The social security contributions are increased. Only categories D to K are modified. The new amounts effective as from January 1, 2023 are as follows:
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- Electronic wallets:
The application of the Fiscal Procedure on Seizure, Precautionary or Precautionary Measures, in cases of tax execution trials, is extended to accounts in electronic wallets (not banks).
- Exempt bonus and increased special deductions:
The National Executive is delegated the power to increase, during fiscal year 2023, the amounts of the exempt bonus and the increased special deductions applicable to employees in relation to dependency and retirees, for the purposes of income tax.
- Internal Taxes:
The internal tax rate for certain electronic products is increased as from 1 January 2023. Products taxed at 17% are taxed at 19%. When companies benefiting from the regime of Law 19.640 manufacture such goods in Tierra del Fuego, the aliquot will go from 6.55% to 9.5%.
- Value Added Tax:
The differential VAT rates applicable to newspapers, magazines, periodicals and digital journalistic editions of online information are modified for taxable events occurring on or after January 1, 2023.
- Aviation Safety Fee:
The Aviation Security Tax is created for the service rendered by the Airport Security Police (PSA) and shall be paid by passengers boarding international, regional and/or domestic flights. The Ministry of Security of the Nation is delegated the power to set this tax, provided that it does not exceed 0.25% of the basic salary of the hierarchical grade of Principal Officer of the General Scale of the Police Personnel of the PSA, those who sell the air tickets act as agents for the collection of the tax.
- Gasoil and diesel oil:
Imports of gasoil and diesel oil and their sale and/or delivery in the domestic market, carried out during the year 2023, are exempted from the Liquid Fuels Tax and the Carbon Dioxide Tax.
- Social benefits:
The monetary allocation of social programs shall not be considered for the determination of personal contributions and employer contributions of the social security subsystems.
- Benefits for truck carriers:
The deduction of mobility expenses, per diem, mobility and similar compensations, in the Income Tax, paid in favor of long distance land transportation workers, is increased. The deductible limit, which was the amount of the non-taxable income, is increased up to four (4) times such amount, as from the tax period 2022, inclusive.