May 24, 2021
Argentine Chamber of Deputies approves bill that would raise corporate income tax rates
The new bill approved by the Chamber of Deputies would increase tax rates by replacing the current fixed tax rate with a progressive tax scale. It also would extend the 7% withholding tax rate currently in force to dividends from profits accrued in tax years beginning January 1, 2021 and thereafter.
On May 19, 2021, the Argentine Chamber of Deputies approved a bill that would increase corporate income tax rates for tax years beginning January 1, 2021 and onwards. The bill has been sent to the Chamber of Senators for final approval.
Characteristics of the bill
The bill would replace the 25% fixed tax rate currently in effect with a progressive tax scale that would apply as follows 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 to dividend distributions from profits accrued in tax years beginning January 1, 2021 and onwards.