Modification of the Income Tax Withholding Regime
Tax Law Report | Modification of the Income Tax Withholding Regime
The Revenue and Customs Control Agency (ARCA), through General Resolution (“GR”) 5683/2025, has introduced significant changes to the income tax withholding regime applicable to employees and other individuals categorized under the fourth tax bracket. The regulation, effective as of April 30, 2025, and applicable to the 2024 fiscal year, aims to simplify tax compliance and update asset-related thresholds. The most important updates are:
1. Simplified Procedure for Payment of Unwithheld Tax
When the employer has not withheld the total amount of tax, the employee may pay the outstanding balance via VEP (Electronic Payment Voucher) without the need to register for the tax or file an annual tax return, provided they receive Form F.1359. This mechanism reduces the formal burden on taxpayers and can be complemented by voluntary registration if the individual wishes to claim non-standard deductions. The process is finalized when the payment is reported through the SIRADIG-TRABAJADOR system.
The payment of the self-withheld tax must be made by the general due date for income tax payments applicable to individuals and undivided estates.
2. New Thresholds for Informative Wealth Tax Return
Employees with gross annual income equal to or greater than ARS 150,000,000 must submit an informative return for personal assets. This requirement explicitly excludes individuals who have opted into the Special Personal Assets Regime (REIBP), in accordance with Law 27,743.
3.Reformulation of the Annual Settlement Obligation (Form F.1359)
Employers are required to prepare Form F.1359 when the employee’s gross remuneration for the year is equal to or exceeds certain thresholds, or when the full tax has not been withheld from the salaries paid.
The annual settlement must be submitted by May 9, 2025. Any withholding or reimbursement resulting from this process may be executed until the last business day of the same month.