Argentina's new Tax Innocence Regime decriminalizes tax evasion, raises enforcement thresholds to ARS 100 million and slashes the statute of limitations from 5 to 3 years, offering millions a fresh start with streamlined compliance, pre-filled returns, and a 50% penalty reduction for those who regularise within 45 days.
Argentina’s tax authority (ARCA) announced on 9 February 2026 that it implemented its Tax Innocence Regime through Law No. 27799, marking a fundamental shift away from decades of restrictive taxation that forced millions into the informal economy. ARCA has published the complete regulatory framework, giving citizens unprecedented freedom to manage their finances without constant scrutiny.
The new system dramatically raises enforcement thresholds and reduces government oversight. Simple tax evasion now begins at ARS 100 million, while aggravated evasion starts at ARS 1 billion. The statute of limitations has been shortened from 5 years to 3 years, meaning those who register for the Simplified Income Tax Regime (RSG) soon will face no investigations starting in 2029.
Most significantly, tax evasion is no longer a criminal offence. Individuals who fall behind can simply pay their outstanding debt without facing prosecution.
Who can participate
To qualify for the simplified regime, taxpayers must meet specific criteria: annual income below ARS 1 billion, total assets under ARS 10 billion, and not being classified as a Large National Taxpayer. ARCA verifies eligibility based on the enrollment period and the two preceding years.
Streamlined compliance and banking requirements
ARCA provides pre-filled tax returns that taxpayers can review, modify, and submit. Timely filing and payment or enrolling in a payment plan by the deadline releases individuals from standard Income Tax obligations for that period. Transactions must flow through the financial system at either origin or destination, though real estate sales can still be conducted in cash under Decree No. 22/2001.
Protection from investigation
The regulations explicitly state that ARCA will not analyse increases in net worth, including bank deposits, when verifying compliance. Filed returns are presumed accurate when submitted and paid on time, and ARCA can only challenge them in exceptional cases involving significant, verified discrepancies. Each compliant submission creates a new base tax period, effectively closing previous periods from review unless ARCA has already issued an intervention order.
Incentives and exemptions
Taxpayers who voluntarily correct errors before receiving an intervention notice face no penalties. Those who regularise their situation within 45 days of the due date receive a 50% reduction in penalty.
Additionally, on 10 February 2026, ARCA issued General Resolution 5822/2026 clarifying that interest earned on foreign currency deposits is exempt from income tax withholding. The measure aligns existing regulations with the newly introduced simplified Tax Innocence regime, which aims to encourage the formalisation of undeclared assets by ensuring their identification, traceability, and verification. Taxpayers participating in the regime will therefore not face withholding tax on interest generated when depositing funds into the financial system.
