As part of the agreement between the ruling party and the dialogue opposition blocks (PRO, UCR, We Make the Federal Coalition, the Civic Coalition and the Federal Innovation) It was resolved in the House of Representatives -with 27 signatures and 4 partial dissents- to accept all the modifications made by the senators, except for some points. Among them, some aspects of the tax on Profits and the tax on Personal property.
In the first case – Earnings – the opinion presented two modifications with respect to what was approved in the Senate:
- The first item on which there is disagreement is the restitution of the fourth category of Income Tax. That article was rejected in the Senate by 41 votes against to 31 in favor. The Deputies version proposes raise the non-taxable minimum to $1,800,000 gross for singles now $2,200,000 for those married with children. Thus, around 800,000 workers would again have to pay this tax with rates ranging from 5% to 35%.
- In addition, the non-taxable minimum will be updated on a quarterly basis this year, in September, and then on a half-yearly basis based on the Consumer Price Index (CPI).
If the original version – the one approved by Deputies – is ratified, the State will collect the equivalent of 0.16 of GDP that will go to the Treasury and the equivalent of 0.24 of GDP. which will be shared with the provinces.
The refund of the Income Tax is emphatically rejected by the Patagonian governors, since a large part of its private and state workers would be affected because they have high salaries due to the salary regime in unfavorable areas and the activities they carry out (for example, oil tankers and port workers).
On the other hand, the Government focused on restoring the reform of the Personal Property Taxes (IBP) because it considers that it is a way to guarantee the success of the money laundering (so that those who plan to use that benefit are not recorded). The changes that were included in the opinion approved by Deputies are the following:
- According to the project that came out of Deputies, The new tax floor will go from $27 million to $100 million. Likewise, the deduction for family housing will rise to $350 million.
- On the other hand, for sworn declarations with assets until the end of 2023 the rates will be, as expected, between 0.5% and 1.50 percent. Between 2024 and 2026, only two rates would remain in force, between 1.25% and 1.50%, and from 2027, a single rate of 0.25 percent.
- Furthermore, the Executive Branch proposes a scheme of advance payment of the tax for the amounts that correspond to the coming years, until 2027. This is the Special Personal Property Tax Income Regime (“Reibp”)).
The Reibp is established as an optional and voluntary regime where taxpayers who choose to join it will pay the Personal Property Tax corresponding to the fiscal periods 2023, 2024, 2025, 2026 and 2027 in a unified manner, applying a proportional – non-progressive rate. – 0.45% of the total assets (or 0.5%, for assets that are laundered).
Likewise, individuals and undivided estates residing in Argentina may join, but also individuals who as of 12/31/2023 are not considered residents for the purposes of the Personal Property Tax, but who had been residents previously.
Finally, taxpayers who opt for the Reibp will be excluded from any obligation related to the Personal Property Tax or any other national tax that is applied to wealth and that could be created for the tax periods between 2023 and 2027. In other words, These taxpayers will not have to submit sworn declarations, determine or pay the IBP or its advances.
