The lower house of the Federal Congress has passed a tax reform on 6th December 2016. The most relevant provisions are given below:
Individual Taxation
- Increase in allowances;
- Deduction in case of rental payment on dwellings;
- Deduction of mortgage interest payment;
- Permanent discount of the 13th Month’s salary under a certain salary range;
- Tax exemption on the benefit for working overtime;
- Termination of the exemption on income resulting from fixed time deposits, treasury bills and mutual funds;
- Confirmation of withholding tax on the dividend distribution by domestic resident companies, which had been abolished in July 2016.
Tax system for small taxpayers
Increase in the thresholds for the multi-categories distorted by the impacts on inflation.
VAT
Arrange representative agents of non-resident companies doing business in Argentina with the objective of securing the tax collection on those activities.
Tax on gambling
Announcement of additional taxes.
Additionally, the reform reestablishes a tax on the export of mining products that was repealed in 2016 and announces a tax on non-productive immovable property.
