Argentina

Argentina implements selected tax amendments and reduces certain consumption taxes

Argentina enacted a package of tax measures that introduces targeted value-added tax (VAT) and corporate income tax (CIT) amendments (with several changes effective in 2025/26) and provides tax burden relief by eliminating certain selective consumption (excise-type) taxes as from the month following the law’s entry into force. The package also creates an Incentive Regime for Medium-Sized Investments (RIMI) for micro, small, and medium-sized enterprises (MSMEs), although the most broadly relevant changes for large multinational groups may consist of the general VAT / income tax amendments and the excise tax repeal.

VAT

Electricity used in irrigation systems (agro-industrial sector)

Effective as of the first day of the month immediately following the law’s entry into force, the reform adds a new exemption to VAT covering the supply of electric energy used in irrigation systems / equipment for the agro-industrial sector.

CIT and related rules (Income Tax Law)

Tax loss indexation (effective for fiscal years beginning on / after 1 January 2025)

Tax losses generated in fiscal years beginning on / after 1 January 2025 will be indexed based on the consumer price index (CPI) (Argentine INDEC’s ’IPC’) between the closing month of the fiscal year in which the tax loss originated and the closing month of the fiscal year being assessed.

Repeal of selective excise-type taxes

Effective as of the first day of the month immediately following the law’s entry into force, the reform eliminates the excise tax for certain categories, including:

• insurance
• cellular and satellite telephony services
• luxury goods, and
• certain automobiles / engines, recreational boats, and aircraft.

Incentive Regime for Medium-Sized Investments (RIMI)

The reform also creates the so-called ’RIMI‘, an incentive regime for MSMEs (up to Medium Segment 2) making qualifying ’productive investments‘ in Argentina during the first two years from the regime’s effective date (as defined by regulations). Key benefits include:

• Optional accelerated income tax depreciation for qualifying new depreciable movable assets (excluding automobiles) and certain works, with one-year depreciation available for specified agricultural / energy-efficiency items and depreciable livestock.
• Accelerated VAT input credit refunds tied to qualifying investments (available after three monthly VAT periods under the regime’s rules).

To access RIMI benefits, productive investments made during the applicable two-year window must meet (at least) the following minimum amounts (by MSME category):

• Micro enterprises: 150,000 United States dollars (USD)
• Small enterprises: USD 600,000.
• Medium enterprises – Segment 1: USD 3,500,000.
• Medium enterprises – Segment 2: USD 9,000,000.

The Federal Tax Authority (ARCA) is expected to issue complementary and operational regulations for RIMI’s application, potentially involving other governmental areas as needed.