AFIP Argentina

Argentina amends its income law

The changes to the new Income and Assets Law sanctioned by the Argentinean Congress in July, published on 4th July 2021 in the Official Journal, establish tax waivers with the aim of promoting productive investment in the local currency, as assigned by the Executive Power.

The new law, upon amendment, rules that there will be profit waivers for those interests generated by deposits in pesos with an adjustment clause (such as fixed rate UVAs [Real Value Unit]) as well as any yields earned from issued capital in the national currency.

In the case of Personal Property Tax, this is waived in regard to Mutual Fund (FCI, in Spanish) share payments and the certificates and securities representative of any trust company debt from financial trust funds which may have been issued, with the approval of the National Securities Commission, for public tender, and whose underlying essential assets are made up of, as a minimum, a certain regulatory percentage.
The new regulations indicate that said support will be invariably applied to the underlying principal asset which is made up of the following deposits and exempt assets: titles, bonds, and securities issued by the State, provinces, municipalities, and the Autonomous City of Buenos Aires; deposits in Argentinean and foreign currency made in the country, on a fixed term basis or in a savings account.

In this regard, it is hereby stated that the percentage to be defined in the regulations will not be applicable if there are any changes to the composition of the deposits and assets which mean that these drop below said percentage for a constant or intermittent term of at least 30 days in the year or the term corresponding to the proportion of days considered at the time of the assets being considered as proportional payments or shares certificates of representative trust company debt up until 31st December.

Income tax for employees and pensioners

Along with these changes are those which have been previously ratified for the Income Tax law for employees, in which the minimum taxable amount increased to $150,000 per month, and in the case of retirement pensions, to over eight guaranteed minimum salaries.

The law takes into account retrospective payments since January and as of July reimbursements will be made for withheld securities in five payments. Bonus payments are not included in these calculations. The age limit to reduce tax in regard to those with disabled children is also removed, and there are also deductions for those couples living together (previously it was only applicable for married couples), and, in light of the emergency health situation, up until September, any overtime or off duty hours for health workers will be exempt from tax.

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