Argentina: Nationwide govt enacts Legislation No. 27,630 amending income tax charges for firms and everlasting institutions

In the letter

The following income tax rates apply to companies based on the accumulated net profit:

  • Up to ARS 5 million: 25% tax rate
  • Over ARS 5 million and up to ARS 50,000,000: 30% tax rate
  • More than 50 million ARS: 35% tax rate

Dividends and profits in cash or in kind from companies are taxed at 7%.

Permanent establishments are also subject to the above-mentioned tax rates and an additional tax rate of 7% at the time of the profit transfer to their headquarters.

In more detail

On June 16, 2021, Law No. 27,630 (Law) was published in the Official Gazette, amending the following aspects of the Income Tax Law (ITL):

1. New tax rates for companies

Companies named in Section 73, Subsection a) of the ITL pay taxes according to the following scale:

2. Tariffs for permanent establishments

Establishments are also subject to the scale given above.

These companies have to pay an additional tax rate of 7% to their parent company at the time of the profit transfer.

3. Dividends and Similar Profits

Dividends and profits in cash or in kind distributed by companies are taxed at 7%.

4. Adjustments

The amounts provided in the scale specified under number 1 above will be adjusted annually from January 1, 2022, taking into account the annual change in the consumer price index (IPC) of the National Institute for Statistics and Censuses (INDEC) and correspond to the month of October of the year before Adjustment compared to the same month of the previous year.

5. Validity

The law comes into force on the day of its publication in the Official Journal and comes into force for fiscal years from January 1, 2021.

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