On October 4, the Official Gazette published Law 27687 which approved the Fiscal Consensus (the “Consensus”) entered into on December 27, 2021 by the Argentine Executive Branch and the subscribing provinces (the “Provinces”), except for the Autonomous City of Buenos Aires and the provinces of La Pampa and San Luis.
By means of the Consensus, the provinces accept commitments in tax and fiscal matters, as well as in matters of indebtedness and judicial proceedings, generating effects for the subscribing jurisdictions.
Main commitments in tax matters:
- Tax Administration: establish common criteria on:
a) Withholding and collection regimes
b) General and procedural rules of national, provincial and municipal taxes.
- Gross Income Tax:
a) Determine that the taxable event reaches the habitual and onerous exercise, regardless of the subject and place where it is carried out
b) The Consensus established maximum tax rate ceilings according to the type of activity
c) Not to apply additional tax rates over those already established for this tax.
- Stamp tax: The consensus plans to establish a maximum tax rate of 3.5% for real estate transfers, 3% for the transfer of automobiles and 2% for the remaining acts, contracts and transactions covered.
- Tax on the increase of wealth obtained free of charge: The Provinces commit themselves to analyse the imposition of a tax on any increase in wealth obtained free of charge, which includes property located in their territory and/or benefits human/legal persons.
Also, in the Consensus it was agreed to leave without effect the obligations assumed in provincial tax matters previously established through the Fiscal Consensus 2017, 2018, 2019 and 2020.
Only those obligations that have been complied with as of the date of the signing of the Consensus, as well as those that expressly arise from the stipulations of the Consensus, will be considered enforceable.