Changes to income tax
On 21 April 2021, Law No. 27,617 was published in the Official Gazette amending Argentina’s Income Tax Law and incorporating significant changes with impact in individual taxation, including registered employees, retired individuals, and pensioners.
On 31 December 2021, Law No. 27,667 was published in the Official Gazette, empowering the Executive Branch to increase the amount of monthly gross salary that will not be subject to income tax. Using the faculties delegated by Congress, Decree 714/2022 (published in the Official Gazette on 28 October 2022) established an increase in the special deduction for the income tax calculation so that the tax only reaches individuals with monthly gross salary higher than 330,000 Argentine pesos (ARS). Moreover, the 13th salary will be exempt from tax when the gross salary is below ARS 330,000. For fiscal year (FY) 2023, the tax only reaches individuals with monthly gross salary higher than ARS 404,062.
The original amendment also contemplates an increase in the special deduction for children and disabled children, and it also incorporates a tax deduction for a cohabiting partner even if the couple is not legally married.
Other changes include an exemption for day care and maternal and kindergarten expenses corresponding to dependent children and stepchildren, stepsons and stepdaughters up to three years of age, as well as the provision of educational tools and the payment of training or specialisation courses for employee´s children and stepchildren as long as it is paid by the employer, duly supported by the corresponding invoices, and, in case of training, up to 40% of the non-taxable income deduction.
In addition, training or specialisation courses or seminars are exempt from income tax as long as they are essential for the performance and development of the employee's career in the company and they are paid by the employer.
Mobility and travel expenses are deductible according to the applicable labour agreement. Should they not be determined by the mentioned agreement, the deduction will be limited to ARS 101,025.94 (FY 2022). For FY 2023, this limit is ARS 180,673.28.
Digitalisation of tax-related procedures
Continuing with the plan of modernisation in the tax administration, the Federal Tax Authority (AFIP) has issued a series of measures aiming at the digitalisation of certain tax procedures.
Electronic domicile for federal tax purposes
On 24 July 2018, the AFIP issued General Resolution n° 4280/2018 formally establishing the obligation of using a special electronic domicile for all taxpayers.
As of the enactment of the Resolution, taxpayers will no longer receive paper-based notifications from the AFIP. Instead, formal communications will be posted on an online system to be accessed by the taxpayer with the use of its fiscal code. Communications will be deemed to be notified as of its visualisation through the system or, alternatively, on every Monday, regardless of whether the communication was accessed or not by the taxpayer.
Electronic registration for new taxpayers
As of 17 October 2018, new taxpayers can elect to be registered with the AFIP using a web-based process. General Resolution 4320/2018 established an electronic procedure to obtain a tax ID for new taxpayers that already have the latest version of the Argentine ID.
Value-added tax (VAT) on services performed by non-residents in Argentina in absence of a permanent establishment (PE)
On 11 December 2018, the AFIP issued General Resolution 4356/2018 by means of which long-awaited guidance on the application of VAT on the render of services performed by non-residents within the Argentine territory (in absence of a PE) was issued. Although this taxable event was introduced in Argentine legislation by Law 27,346 (published in the Official Gazette on 27 December 2016), the tax was not applicable due to lack of a specific mechanism to remit the taxes to the authorities.
VAT on taxable events that occurred as of 12 September 2018 is to be paid by the Argentine service recipient on a reverse-charge mechanism within ten working days of occurrence. This tax paid can be considered as input VAT (to offset output VAT on taxable sales or render of services in the domestic market) by such service recipient in the monthly tax return corresponding to the month it was effectively paid.
Modifications in tax on personal assets (wealth tax)
On 31 December 2021, Law 27,667 was published in the Official Gazette introducing amendments to tax rates and exempt minimums for wealth tax. As of fiscal year 2022, the exempt minimum will rise from ARS 6 million to ARS 11.282.141,08 million (*). Also, the non-taxable minimum for dwelling house was increased from ARS 30 million to ARS 56 million (*). The following tax rates were to fiscal year 2022 on local assets:
(*) Tax rates and exempt minimum will be adjusted annually, considering the annual variation of the Inflation Index (IPC – Consumer Price Index).
|Taxable assets (ARS)||Tax on column 1 (ARS)||Tax on excess (%)|
|Over (column 1)||Up to|
Remission of employees' annual wage tax return by employers
On 2 January 2019, the AFIP issued General Resolution 4396/2018 establishing the obligation for Argentine employers to electronically remit the employees' annual wage tax return, informing the annual employee's compensation, deductions, and withholdings performed for each fiscal year. Formerly, employers were only required to remit this information to employees but not to the AFIP.
This obligation is applicable as of the annual wage return corresponding to each fiscal year starting from 2018, and the due date for the remission will be the last day of April of the following year that is informed. This information will also be available to employees through the AFIP's website.