Law No. 27.630 (National Congress of Argentina): Income tax amendments.
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Tax Law Department Report | Law No. 27.630 (National Congress of Argentina): Income tax amendments
Dear Sir or Madam,
Through Law No. 27.630, the National Congress of Argentina introduced amendments to Income Tax Law (consolidated text 2019) (the “Law”). Entities listed in Article 73, Section a) of the Law will have to apply new tax rates using the scale described below:
Moreover, this scale will be applicable to permanent establishments as defined in article 22 of the Law.
In relation to foreign source income tax, entities included in such a list will have to apply the aforementioned scale.
These amounts will be annually updated as of January 1st, 2022, based on the annual variation of the Consumer Price Index (“IPC”) stated by the National Institute of Statistics and Censuses (“INDEC”).
Dividends and utilities paid by companies and permanent establishments will be taxed at 7%.
Regarding fees of directors or members of supervisory boards and the amounts granted to managing partners, the corporate deduction cap was raised 40% when the recipient is a woman and 60% if the recipient is a transvestite, transsexual and transgender. Such deductions will be allowed for the referred members that exceed the minimum number required for the composition of the board of directors and/or supervisory board in accordance with corporate regulations.
Furthermore, it will be considered a low or nil tax jurisdiction, any country, domain, jurisdiction, territory, associated State, or special tax regime when its corporate maximum income tax rate is less than 60% of the minimum tax rate established on the aforementioned scale.
Lastly, the 41,5% rate on the income derived from games of chance in casinos and gambling through electronic machines of games of chance or automated bets, was preserved.
Should you require any further information on this matter, please do not hesitate to contact us.
Sincerely,
Santiago L. Montezanti