On 23rd December 2019, Argentina published Law 27541 regarding Social Solidarity and Productive Reactivation in the Official Gazette, which contains measures on corporate income tax, personal income tax, dividend withholding tax etc. The Law was enacted on the same day of its publication.
Corporate income tax
According to the Law, the reduction of the corporate tax rate from 30% to 25% is stopped for a year so that the reduction will apply from 1st January 2021 instead of 1st January 2020.
Personal income tax
Specific exemptions from the 30% foreign currency tax are applicable for expenses for health services, medicines, books in any format, and platforms and software for educational purposes. The individual asset tax on the net-equity value of shares and equity holdings in Argentine companies is increased from 0.25% to 0.5%.
Withholding Dividend Tax
Under the Law, the increase in the field of dividend withholding tax from 7% to 13% is suspended for a year that means the new 13% rate will apply from 1 January 2021 instead of 1 January 2020.
