On 21 July 2023, the Argentine Tax Authority (AFIP) issued General Resolution No. 5391/2023 which outlines the implementation of an exceptional advance income tax payment requirement for specific companies in the year 2023.
Companies meeting the criteria of having declared a taxable income amounting to at least ARS 600 million (excluding any carried-forward losses) during the 2022 fiscal year, and not having calculated tax liability due to carried-forward losses, are subject to an advance payment obligation. The prepayment is equivalent to 15% of the taxable income without any deduction for carried-forward losses. Taxpayers with fiscal year-ends falling within the period of January to July 2023 must take into account their income tax declaration for the 2023 fiscal period. However, this requirement does not apply to legal entities possessing an income tax exemption certificate.
The advance income tax payment can be made in three successive and equal monthly installments, with the deadlines determined by the month of the fiscal year-end. These payment deadlines will commence on August 22, 2023.
