Regulation by the Executive Branch on the Income Tax Reform
Tax Law department report | Regulation by the Executive Branch on the Income Tax Reform
On July 22, 2024, through Decree 652/2024, the regulation of the Income Tax reform was issued, which came into force on the same day and applies as from the 2024 period. It should be noted that the Federal Administration of Public Revenue regulation has not yet been issued. The most relevant regulated issues are as follows:
Inflation adjustment mechanisms
From the 2025 fiscal period onwards, the amounts provided in articles 30 (non-taxable income and personal deductions) and 94 (tax rate scale for individuals and undivided estates) of the income tax law will be adjusted with effect from January 1 and July 1 of each fiscal year, by the coefficient arising from the variation of the Consumer Price Index (CPI), corresponding to the calendar semester ending the month immediately prior to the adjustment.
For those who exclusively obtain the income included in paragraphs a), b), c) and e) of the first paragraph of article 82 of the law (fourth category income), for the determination of tax withholdings for sums received during the second half of each fiscal year, the amounts provided in article 30 and the tax rate scale of article 94, both of the law, must be considered, which are effective from July 1 of the fiscal period in question, applying one-twelfth of the mentioned amounts, accumulated to each month of the referred second half. The withholding agent will be responsible for refunding any excess tax withheld during the first half of each fiscal year due to the update of the amounts, if applicable, at the time of making the annual calculations.
Deduction of lease of residential property
Regarding the mentioned deduction, if the lease involves multiple tenants, the amount to be deducted by all tenants cannot exceed 10% of the total sums paid for rent for residential purposes, provided that, if the tax authority so requires, the respective contracts are duly registered.
Wellsite Personnel
Wellsite personnel, as defined by article 82 of Law 27,743, includes all personnel who regularly and directly perform the following activities:
-Oil or gas exploration carried out in the field, and
-Tasks performed at the wellhead and related to drilling, completion, maintenance, repair, intervention, production, special operations services, and ecology and environmental services at oil or gas wells.
This also includes those who develop:
-The operation and maintenance of facilities necessary for hydrocarbon production, and
-Tasks necessary for hydrocarbon exploration and production.
Santiago L. Montezanti
Enrique López Rivarola