March 16, 2021 Argentine Government plans to send bill to Congress that would raise corporate income tax rates The proposed bill would increase tax rates on large entities by replacing the current fixed tax rate with a progressive tax scale. It would also extend the 7% withholding tax on dividends from profits accrued in tax years beginning January 1, 2018, to dividends from profits accrued in tax years beginning January 1, 2021 and thereafter. On March 11, 2021, the Argentine Executive Power circulated a bill that it plans to send to Congress that would increase corporate income tax rates for tax years beginning January 1, 2021 and onwards. Characteristics of the bill The bill would replace the 25% fixed tax rate currently in effect with a progressive tax scale with the following ranges for tax years beginning January 1, 2021:
The new tax rates also would apply to permanent establishments in Argentina as defined by the income tax law. The bill also would allow the ranges of net taxable income to be adjusted annually beginning January 1, 2022, considering the annual variation as of October of the previous year of the consumer price index (IPC for the Spanish acronym) provided by National Statistics and Census Institute (INDEC), an agency of the Ministry of Economy. In addition, the bill would permanently extend the 7% withholding tax rate currently in force for dividend distributions from profits accrued in tax years beginning January 1, 2018, to dividend distributions from profits accrued in tax years beginning January 1, 2021 and onwards. ———————————————
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