Argentina

Individual - Significant developments

Last reviewed - 13 May 2024

Changes to income tax

On September 2023, the Decree N° 473, was published in which the previous Government introduced modifications for salaries related to October, November and December 2023. In this sense, no income tax withholding will apply when the gross salary of the month being settled -as of October 1, 2023- or the average of the monthly gross salaries from October to December, 2023, does not exceed the sum of AR$ 1,980,000 per month (equivalent to 15 times the minimum, vital and mobile salary in force as of October).

For Fiscal year 2024, the government established by Law a new “cedular regime” which will be applied on the “highest incomes”, understood as those that exceed the equivalent of the sum equivalent to 180 annual minimum, vital and mobile salary (SMVM), as a non-taxable minimum.  Under this scenario, employees, retirees and pensioners (no applicable to directors) must pay taxes only when their gross monthly salary is greater than 15 current minimum, vital and mobile salaries (SMVM) at the time of tax determination. This new regime will apply from FY 2024. In addition a progressive scale is incorporated, whose rates will be established between 27% and 35%, and the value of the Minimum, vital and Mobile salary which will be updated twice a year, in January and July.        

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

Since 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

Since 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)

In 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)

As of fiscal year 2023, the exempt minimum will rise from ARS 11.2 million to ARS 27.3 million (*). Also, the non-taxable minimum for dwelling house was increased from ARS 56 million to ARS 136.9 million (*). 

(*) Tax rates and exempt minimum will be adjusted annually, considering the annual variation of the Inflation Index (IPC – Consumer Price Index).

The following tax rates were to fiscal year 2023 on local assets:

Taxable assets (ARS)

Tax on column 1 (ARS)

Tax on excess (%)

Over (column 1)

Up to

0

 13,688,704.14

-

0.50

13,688,704.14

29,658,858.98

68,443.51

0.75

29,658,858.98

82,132,224.86

188,219.68

1.00

82,132,224.86

456,290,138.07

712,953.35

1.25

456,290,138.07

1,368,870,414.25

5,389,927.27

1.50

1,368,870,414.25

and over

19,078,631.41

1.75

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.