2023-09-15-KPMG_Global-Argentina_–_Important_Income_Tax_Scale_Changes_for_2023_3页_345kb

Argentina Income Tax Changes for 2023

Effective from August 11, 2023, Argentina introduced new modifications to the income tax (impuesto a las ganancias) through General Resolution 5402/2023 and related decrees.

Income Tax Scale Changes

• Employers must apply increased progressive tax scales, which are 35% higher than current values, for monthly withholding on dependent employees' salaries from August to December 2023.
• The change aims to counteract inflation and prevent neutralization of salary policies.
• A reimbursement for over-withholdings from January to July will be issued in two parts: 50% in August and 50% in September, to be reflected as "Beneficio Decreto 415/23" in pay slips.

Special Deduction Increase

• Starting August 1, 2023, the special deduction for dependent employees, public employees, and retirees was increased. For monthly salaries not exceeding ARS 700,875, the deduction results in a taxable net income of ARS 0 after allowances. For salaries between ARS 700,875 and ARS 808,341, a fixed incremental deduction is provided by tax authorities.

These changes reduce tax burdens for many taxpayers and may lower costs for employers managing international assignments. Affected parties should consult tax professionals for planning and compliance.