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On August 16, 2022, the Argentine Tax Authority (AFIP) published General Resolution No. 5248/2022 (the Resolution) establishing a one-time "windfall income tax prepayment" for companies that have obtained extraordinary income derived from the general increase in international prices.

General Resolution No. 5248

The Resolution establishes that the "windfall income tax prepayment" would apply to companies that meet one of the following requirements:

• The income tax determined for tax year 2021 or tax year 2022 is at least AR$100M (approx. USD 752,000).
• The net taxable income determined for tax year 2021 or tax year 2022, before the deduction for accumulated tax losses, is at least AR$300M (approx. USD 2.2M).

For purposes of determining whether the above thresholds are met, the Resolution clarifies which tax years taxpayers must take into account:

• Tax year 2021 when the year-end occurred from August to December 2021
• Tax year 2022 when the year-end occurred from January to July 2022

The amount of the "windfall income tax prepayment" is determined in accordance with the following:

• Taxpayers for which the amount of income tax prepayments determined under the general regime is greater than AR$0: 25% of the amount determined for the income tax prepayments under the general regime
• For all other taxpayers: 15% of the net taxable income determined for the prior tax year, before the deduction of accumulated tax losses

The "windfall income tax prepayment" will be creditable against the corporate income tax liability determined in the following tax years:

• Tax year 2022 for taxpayers with a year-end from August to December 2021
• Tax year 2023 for taxpayers with a year-end from January to July 2022

The "windfall income tax prepayment" is paid in three equal and consecutive monthly installments and the due dates will depend on the month of the year-end, starting on October 22, 2022.

The Resolution excludes from the "windfall income tax prepayment" those entities that obtained an income tax exemption certificate valid for tax year 2021 and tax year 2022.

Implications

Taxpayers should carefully assess the new rules by taking into account their facts and circumstances, especially in light of the extraordinary character of the "windfall income tax prepayment."

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