Congress Passes Law Including Tax Measures

On July 27, 2024, Congress passed Law 27743 on tax measures, including a moratorium and tax amnesty regimes and amendments to the Personal Assets Tax, Income Tax, and Special Regime for Small Taxpayers, among others. The Executive’s enactment and the publication in the Official Gazette are still pending.

1.    First Title: Moratorium
Title I of the Law on Palliative and Relevant Tax Measures creates an Exceptional Regime for the Regularization of Tax, Customs, and Social Security Obligations.
The main aspects of the Regime are:
a.    Obligations that may be included in the Regime
The Regime includes those tax, customs, and social security obligations overdue by March 31, 2024, and the infractions committed up to that date related or not to those obligations. 
b.    It expressly includes the obligations under administrative or judicial discussion (in these cases, acceptance or waiver is required), those that arose within the framework of the Solidarity and Extraordinary Contribution Law (Ley del Aporte Solidario), and the liabilities of the withholding and collection agents that have omitted to withhold or collect, or the amount that, having been withheld or collected, was not deposited after the deadline. All other tax obligations not expressly excluded from the Nill are also included.Exclusions
Those convicted (with sentence confirmed by the court of appeals) for any of the crimes provided for in the Customs Code or in the criminal tax laws (in force) before the enactment of the law are excluded from the Regime, provided that the sentence has not been served yet. It also excludes those convicted (with sentence confirmed by the court of appelas) for common crimes connected with the non-compliance of their tax obligations, and legal entities whose partners or representatives have been convicted for any of those regulations, in the last two cases, with a final judgment and provided that the sentence has not been served yet.
Withholding and collection agents are also excluded if they were preliminary convicted and are waiting for oral trial for offenses related to criminal offenses regarding tax evasions arising from their withholding or collection activities.
Likewise, certain obligations are expressly excluded. For example, contributions to the National Social Security System or the special social security regime for maids or housecleaners, debts for contributions to labor insurances, obligations and infractions related to promotional regimens, etc.
c.    Regime Benefits
The benefits depend on the modality and moment the debts are paid:
•    Payment in cash or payment plan of up to three monthly installments and inclusion in the Regime within the first 30 calendar days from the effective date of the regulation issued by the Argentine Tax Authority (AFIP) will have 70% forgiveness of compensatory and punitive interest.
•    Payment in cash or payment of the debt in up to three monthly installments and inclusion in the Regime between 31 calendar days and 60 calendar days as from the effective date of the regulation issued by AFIP will have 60% forgiveness of compensatory and punitive interest.
•    Payment in cash or payment of the debt in up to three monthly installments and inclusion in the Regime between61 calendar days and day 90 counted as from the effective date of the regulation issued by AFIP will have 50% forgiveness of compensatory and punitive interest.
•    Regularization through an installment plan and inclusion in the Regime within 90 calendar days will have 40% forgiveness of compensatory and punitive interest.
•    Regularization through an installment plan and inclusion in the Regime from 91 calendar days onwards will have 20% forgiveness of the compensatory and punitive interest.
In the five cases mentioned above, 100% of the applicable fines will be forgiven.
d.    Effects on criminal actions
Inclusion in the Regime results in the suspension of ongoing tax and customs criminal proceedings and the interruption of the statute of limitations. The total payment of the debt would result in the extinction of the criminal action, to the extent that there is no final judgment by the date of payment. Criminal action would also be extinguished as to tax obligations paid before the entry into force of the regime as long as no final judgement exists by such date.
e.    Conditions of the installment plan
Individuals: a payment on account of 20% of the debt and, for the rest of the debt, up to 60 monthly installments.
Micro and Small Companies: a payment on account of 15% of the debt and, for the rest of the debt, up to 84 monthly installments.
Medium-sized Companies: payment on account of 20% of the debt and, for the rest of the debt, up to 48 monthly installments.
Rest of taxpayers: payment on account of 25% of the debt and, for the rest of the debt, up to 36 monthly installments.
The financing interest rate is calculated based on the rate set by the Banco de la Nacion Argentina for commercial discounts.
f.    Extension of the benefits for those obligations paid before the entry into force of the Law
The Regime extends the forgiveness of fines and penalties that have not been paid or that have a final judgment to those cases in which:
(i) Regarding fines corresponding to formal violations committed up to and including March 31, 2024. The formal obligation is complied with before the end of the period to be included in the Regime (whenever possible). If this is not possible, they are waived ex officio.
(ii) Regarding substantial fines and penalties corresponding to substantial obligations accrued up to and including March 31, 2024, if the main obligation has been paid by that date.
All compensatory and/or punitive interests corresponding to tax obligations (including ordinary and/or extraordinary advances or payments on account) paid before March 31, 2024, inclusive, are also condoned.
g.    Joint and several liability for third-parties’ debts
Joint and several liable parties mentioned in section 8 of Law 11683 may adhere to the Regime, regardless of whether the claim corresponding to the main debtor has been filed against them as joint and several liable parties.
In such case, the obligation to file tax returns (original or corrective) or liquidations determining the obligations to be regularized when they have not been filed by the main debtor does not apply.
h.    Impossibility of reinstating tax benefits due to paying promotional regimes
The lapsed tax benefits, granted by the promotional regimes would not be reinstated based on the taxpayer's or responsible party's inclusion into the Regime.
i.    Deadline to participate in the Regime
The deadline to apply to the Regimes is 150 calendar days from the date of entry into force of the regulations of the Law the Executive and AFIP will issue.
j.    Deadline to regulate the Regime. Formal non-compliance. Qualification of the taxpayers' conduct to adhere to the Regime
AFIP must regulate the Regime within 15 calendar days as of its entry into force. The regulation issued may not establish restrictions or limitations to taxpayers or taxpayers responsible for adhering to the Regime.
Any formal non-compliance may not be considered cause for the loss of the benefits granted by the Regime.
Adhering to the Regime may not be considered a negative indication of the qualification of the taxpayer or responsible for the purposes of any registration in charge of AFIP.
k.    Entry into force of the Regime
The provisions of the Regime will become effective as of the day following its publication in the Official Gazette and will take effect once the regulations issued by AFIP become effective. 

2.    Second Title: Tax Amnesty
Title II of the Law creates a voluntary disclosure regime of assets (Tax Amnesty Regime). Its main aspects are:
a.    Taxpayers qualifying for adhesion
Individuals, undivided states and companies, and Argentinian residents (taxpayers or not) may adhere to the Tax Amnesty Regime.
In the case of non-residents who have lost Argentine tax residence as of December 31, 2023, they may opt for the same treatment as residents, in which case these subjects will be considered to have reacquired Argentinian tax residence since January 1, 2024.
b.    Excluded taxpayers
Public officials (currently serving and those who have served in the last ten years), their spouses, cohabiting life partners, ascendants, descendants in first degree, and collaterals in the second degree by consanguinity or affinity may not adhere to the Tax Amnesty Regime.
The Law also excludes, among others, those convicted for any of the offences in the Customs Code or in the criminal tax laws, or for common offences related to the breach of tax obligations; legal entities whose partners or representatives have been convicted under any of these regulations if the conviction is final; those prosecuted for certain crimes; egal entities in which the excluded taxpayers have majority participation and/or control of the corporate will; and those who have received social welfare in the last five years.
c.    Deadline to adhere and stages
The declaration of accession can be filed until April 30, 2025, although the Executive may extend such term until July 31, 2025.
After the declaration of accession, a statement of the Tax Amnesty Regime must be filed within the deadlines established for each stage.

The regime is divided into three stages:

The date of the adherence statement determines the stage applicable to the taxpayer and/or to the assets disclosed at that stage, except in the case of regularization in more than one stage. If a taxpayer discloses assets in more than one stage, it is the stage in which the last adhesion was made that will be considered.
d.    Assets Included
The regime contemplates disclosing a wide variety of assets in Argentina and abroad, which are owned or found in the possession or custody of the subject adhering to the regime as of December 31, 2023 (Disclosure Date). Among them: national or foreign currency, real estate, corporate participations, benefits from trusts, mutual funds units, securities, other personal property, credits of any nature, rights and intangible assets, other assets which economic value can be established and crypto-assets.
Taxpayers adhering to the Regime may only disclose assets the own or that were in their possession or under their custody as of December 31, 2023, inclusive.
e.    Excluded Assets
Excluded assets include foreign currency or securities deposited in financial entities or custody agents based or located in jurisdictions identified by the Financial Action Task Force (FATF) as High Risk (“Black List”) or Under Intensified Monitoring (“Grey List”), or cash located in jurisdictions identified by the Financial Action Task Force (FATF) as High Risk (“Black List”) or Under Intensified Monitoring (“Grey List”).
f.    Special Disclosure Tax
Adhering to the Tax Amnesty Regime involves the application of the Special Regularization Tax, the tax base of which is the total value of the disclosed assets. This is calculated in USD.
The applicable exchange rate for calculating the tax base will be established by regulations of the Executive Branch, using as reference the implicit exchange rate that arises from dividing the last price of a certain public security settled in ARS in the priority price time segment in the Argentine stock market (BYMA) and the last price of said security with settlement in USD in local jurisdiction the day before the Disclosure Date.
The Law provides for the applicable valuation according to each type of asset.
Exclusions from the tax base and different Special Disclosure Tax payment methods are provided in certain cases of deposits in Special Regularization Accounts created for the regime.
The tax rate is 0% for assets below USD 100,000. Once this amount is exceeded, the rate varies between 5% and 15% on the excess, depending on the applicable stage. As mentioned above, if the taxpayer regularizes assets in more than one stage, it is the stage in which the last adhesion was filed that will be considered for all purposes.
To determine the tax rate, the assets the taxpayer, their ascendants, descendants in  first degree,  spouse, and cohabiting life partners disclosed will be considered jointly.
The Special Disclosure Tax must be determined at the time of filing the statement of the Tax Amnesty Regime and paid before the dates for each stage. However, the Law provides for an advance payment of no less than 75% of the total tax. Those taxpayers who disclose assets up to an amount of USD 100,000 are not required to make the advance payment.
Payment of the Special Disclosure Tax must be made in USD, with the exceptions that may be established by regulations for assets in Argentina.
g.    Disclosure of national or foreign cash
The Law establishes that, to disclose cash in Argentina or abroad, it must be deposited in financial entities regulated by Law 21526 or in a foreign banking entity, respectively. The disclosure of cash can only be made in Stage 1 and the deposit of the disclosed money must be made before the deadline for the manifestation of adhesion to Stage 1.
The BCRA will regulate a special bank account for receiving these deposits (Special Regularization Account). Taxpayers may also request broker dealers to open Special Regularization Client Accounts.
The Law provides specific regulations for applying the Special Disclosure Tax to cash currency in Argentina or abroad that is disclosed and deposited in a Special Regularization Account. The amounts deposited or transferred to a Special Regularization Account are not levied by the Special Disclosure Tax as long as they remain in those accounts.
If the amounts in a Special or Client Regularization Account are transferred to another account, the financial entity must withhold (with some exceptions) 5% of the amount transferred. If the amounts are transferred after January 1, 2026 no withholding would be made.
No withholding would apply to transfers between Special or Clients Regularization Accounts, even if they belong to different owners.
These provisions also apply in the case of securities deposited in foreign accounts, which are sold, redeemed, or liquidated, and the resulting amount resulting is transferred to a Special or Client Regularization Account.
h.    Benefits of the Tax Amnesty Regime
Adhering to the Tax Amnesty Regime involves the following benefits (to the extent of the declared assets):
i.    Inapplicability of the presumptions established by article 18 of Law 11683 and the three unnumbered articles added below regarding the declared holdings (fundamentally, inapplicability of the unjustified increase in net worth).
ii.    Release from paying omitted taxes and ancillary obligations originating from the disclosed assets:
a.    Income Tax, tax liability arising from expenses incurred without proper documentation, Tax on Presumed Minimum Income, Real Property Transfer Tax, and Tax on Credits and Debits in bank accounts with respect to the disclosed assets and on the funds that would have been used for the acquisition of these assets.
b.    Excise Tax and VAT on operations that originated the funds with which the disclosed asset was acquired or on cash funds that are regularized.
c.    Personal Assets Tax, Solidarity and Extraordinary Contribution to help mitigate the effects of the pandemic, and Special Contribution on the Capital of Cooperatives, with respect to the tax caused by the increase in assets, assets subject to tax or taxable capital, as appropriate.
d.    Taxes mentioned in the preceding paragraphs that may be owed for fiscal periods prior to the one ending on December 31, 2023, for the disclosed assets.
iii.    Release from any potential claim or penalty, even under criminal tax law, criminal foreign exchange law, criminal and custom law, and administrative infringements that for failing to fulfill legal obligations related to the disclosed assets, their profit, and the funds that would have been used for their acquisition, as well as the collection and settlement of foreign exchange from the disclosure of said assets.
iv.    The benefits listed will also be applicable to assets or possessions prior to December 31, 2023, not declared, for subjects who disclose assets they possessed as of December 31, 2023, through the Tax Amnesty Regime added to those disclosed in their respective tax return of the fiscal years completed until December 31, 2023, inclusive. The regulations will establish a minimum threshold of undisclosed assets, beyond which this benefit declines.
The Tax Amnesty Regimen does not include a pardon for breaching money-laundering legislation.
i.    Other provisions
The Special Regularization Tax will be governed by the provisions of Law 11683 of tax procedure. It will be a co-participable tax.
In addition, it is established that the subjects that adhere to the Regime could not adhere to disclosure regime of assets that could be implemented until the year 2038.
j.    Entry into force of the Regime and regulations
The provisions of the Regime will enter into force as of the day of the publication of the Law in the Official Gazette.
The Regime must be regulated by the Executive Branch, the Argentine Tax Authority, the Argentine Central Bank, and the Argentine Securities Commission within 10 days of publication.
3.    Third Title: Personal Assets Tax 
The Law includes a Special Regime for paying Personal Assets Tax and amendments to the Personal Assets Tax Law.
A.    Special Regime
This would be an optional and voluntary regime applicable to the 2023 to 2027 fiscal years. Individuals and undivided estates residing in Argentina as of December 31, 2023, in accordance with the provisions of the Income Tax Law may apply for this Regime until July 31, 2024. The Executive may extend this deadline until September 30, 2024.
Taxpayers adhering to the Tax Amnesty Regime may adhere to this Regime until the deadline for filing the Tax Amnesty Regime statement, and the adhesion would cover 2024 to 2027 fiscal years.
Individuals who, as of December 31, 2023, are not considered residents for Personal Assets Tax purposes, but have been residents before, will be able to benefit from the Regime. As of their adhesion, they will be considered tax residents in Argentina.
Under this Regime, the taxable base of Personal Assets Tax will be determined by these rules:
i.    For individuals and undivided estates in Argentina: what would be considered are the assets as of December 31, 2023, which would be valued according to the general rules of the tax. For these purposes, shares or participations in companies or other entities are excluded.
ii.    Some exemptions and the non-taxable minimum would be deducted. Securities and bonds would only be deducted if they were among taxpayers’ assets before December 10, 2023.
iii.    The resulting amount would be multiplied by five.
iv.    In the case of taxpayers that have adhered to the Tax Amnesty Regime, specific rules apply to assets regularized under such Regime.
The applicable rate is 0.45%, increasing to 0.50% in the case of taxpayers that have adhered to the Tax Amnesty Regime exclusively regarding assets regularized under such Regime.
The project establishes an initial payment of at least 75% of the total of the Regime to be paid on the date established by regulations.
If, after filing the tax return under this special regime, it turns out that the initial payment is less than 75% of the total owed, the taxpayer may choose to:
i.    remain under the special regime by paying the balance increased by 100%,
ii.    leave the special regime and its benefits and offset the initial payment with other taxes.
The project also establishes that the 2023 tax period can be used for the payment under the special regime, tax credits, and payments on account of the tax corresponding to that period.
Taxpayers who apply for the Regime would be excluded from all obligations involving the Personal Assets Tax or any other national wealth tax that may be levied and that may be created for the 2023 to 2027 tax periods or tax periods 2024 to 2027, both inclusive, in the case of taxpayers that have adhered to the Tax Amnesty Regime. In other words, such taxpayers would not have to file tax returns, assess, or pay the tax or its advance payments.
The aforementioned exclusion does not apply to obligations of a responsible substitute of a foreign subject.
The Regime also includes a ‘fiscal stability’ benefit until the 2038 for taxpayers applying for the Regime regarding the tax and any other national tax created or intended to be levied on all or any of the taxpayer’s assets, preventing the increase in the fiscal burden for assets taxes. The taxpayer’s tax burden would not be increased by asset taxes (whatever their name) exceeding the tax burden resulting from applying the 0.75% tax rate for fiscal periods 2023 to 2028 and 0.45% or 0.50% (as applicable) tax rate for fiscal periods 2028 to 2038, on the value of the assets considered for the Regime.
If this limit is exceeded, the taxpayer may reject any claim for those amounts that exceed the limit. If, however, the taxpayer must pay an amount above the limit, he or she may use the excess for fiscal stability purposes, to offset any assets tax or any other national tax.
Finally, the Regimen establishes that, if a taxpayer who had adhered accepts a donation from a taxpayer who did not adhere and who is a relative in up to the fourth degree of consanguinity, a spouse, former spouse, or cohabiting life partner, the adhering taxpayer will have to pay an additional tax.
The additional tax would be calculated by applying the tax rate that the beneficiary determined under the Regimen to:
 i) the value of the assets received as of the date of the donation, 
ii) multiplied by the number of tax periods remaining to complete the period covered by the Regime.
The additional tax would not apply when the donation consists of shares or participations in Argentine companies or trusts covered by the substitute liability regime of the Personal Assets Tax Law.
The Special Regime for paying Personal Assets Tax will enter into force upon publication of the Law in the Official Gazette.
B.    Amendments to the Personal Assets Tax Law
The Law amends the Personal Assets Tax Law. 
The non-taxable minimum is increased to ARS 100,000,000 and ARS 350,000,000 in the case of residential homes, effective as of fiscal year 2023 inclusive.
It also repeals the differential and increased tax rate for assets abroad and establishes a progressive reduction of the applicable tax rate to 0.25% as of 2027. The Law also eliminates the possibility of ‘repatriating’ part of the assets located abroad to access the reduced rate currently applicable to assets in Argentina. These amendments are also effective from and including the 2023 tax period.
The tax rate would vary depending on the total value of the assets that exceed the non-taxable minimum:
i.    2023: from 0.50% to 1.50%,
ii.    2024: from 0.50% to 1,25%,
iii.    2025: from 0.50% to 1%,
iv.    2026: from 0.50% to 0.75%,
v.    2027: 0.25%. 
Finally, the Law establishes a benefit of a 0.5% reduction of the tax rate for the tax periods 2023 to 2025, applicable to taxpayers who have complied with all their tax obligations on the Personal Assets Tax for the periods 2020 to 2022, inclusive. To apply the benefit, the taxpayer must not have adhered to the Tax Amnesty Regime; and they must have filed the tax returns for the periods 2020 to 2022.
These amendments enter into force as from the publication of the Law in the Official Gazette and are effective for the tax periods indicated in each case.
4.    Fourth Title: Repeal of the Tax on Sale of Immovable Real Estate Property
The 15% tax levied on the sale of real estate property for natural persons and undivided states–applicable to property acquired up to 12/31/2017–would be repealed.
5.    Fifth Title: Amendments to Income Tax Law regarding employment and pension gains
The main changes in the Law are:
•    The repeal of the "schedular tax on the highest income from employment relationship, retirements and privilege pensions," introduced by the former administration. Under such schedular regime, employment remunerations and retirement pensions received as of January 1, 2024, were no longer taxed under the general income tax regime, but under a simplified regime that established -as only deduction- an annual non-taxable minimum equivalent to one hundred eighty (180) minimum wages (MLMW). Any amounts received over such non-taxable minimum were subject to this schedular tax at a progressive tax rate ranging from 27 to 35%.
•    The reinstatement of the general income tax regime for gains resulting from employment and pension plans, as of fiscal periods initiated on January 1, 2024, with certain modifications:
o    Update  of the amounts admitted as personal deductions and family expenses. Thus, the non-taxable minimum income amounts to ARS 3,091,035 per year, while the deduction for spouse or similar amounts to ARS 2,911,135 and for child ARS 1,468,096 per year.
o    Maintenance of the special deduction of: (i) 2.5 times the amount of the non-taxable minimum income for independent contractors; (ii) 3 times the amount of the non-taxable minimum income for “new professionals” or “new entrepreneurs”; and (iii) 3.8 times the amount of the non-taxable minimum income for employees and pensioners.
o    Creation of a new deduction applicable only for employees and pensioners equivalent to of 1/12 of the total deductions resulting from the sum of the non-taxable minimum income, family expenses, and the special deduction applicable to each taxpayer.
o    New tax scales with progressive rates ranging from 5% to 35%.

o    Semiannual updates (in January and July) of the amounts for personal deductions, certain general deductions, and the scales that determine the applicable tax rate, taking into account the Consumer Price Index (CPI). Exceptionally, the amounts provided for personal deductions and the scales to determine the tax rates for FY 2024 will be adjusted in September 2024 by CPI, corresponding to the months of June to August 2024.
o    Repeal of the following exemptions: (i) productivity bonus and similar concepts, (ii) overtime differential, (iii) “13th salary” (Aguinaldo), (iv) remunerations received for mandatory on-call and overtime work performed by health system personnel. Certain specific benefits for mobility and travel expenses, teaching materials, among others, are also eliminated.
o    Introduction of an express provision in the sense that any payments received by employees (either from the public or private sector) for any concept related with such employment relationship (paid by the employer or by a third party) will be considered taxable for income tax purposes. As of fiscal year 2024, any current or future exemptions, reliefs, exclusions, reductions or deductions, provided in any type of general or special laws–except Income Tax Law and law 26,76–, decrees, collective labor agreements or any other convention or regulation, whether issued by the Executive, the Congress, or the Judiciary of any level of government (federal, provincial, or municipal, including the City of Buenos Aires) or any other person, over any concept will not apply.  The law provides a non-exhaustive list of concepts that are considered taxable under this provision. The only concepts that will not be considered taxable are the provision of work clothes or equipment for exclusive use in the workplace and to the granting or payment of training or specialization courses to the extent that these are essential for performance and development of the employee. 
•    The endorsement of all regulations issued by the former administration in 2023 (Decree 473 and supplementary regulations) that were implemented to mitigate the tax impact of inflation in such period. Upon this endorsement, the beneficiaries of those regulations will not have to pay any tax difference for FY 2023 at the moment of filing the annual tax return. 
•    The granting of an extraordinary deduction equivalent to the increase in the taxable net income that may be generated by the repeal of the schedular regime and the implementation of these new rules over any income received from January 1, 2024, until the entry into force of this Law. In this way, any “tax savings” that an individual may have had so far in FY 2024 due to the application of the schedular regime wll not be taxable.
•    The Law established that, for tax periods beginning on or after January 1, 2024, the benefits in article 1 of Law 26176 (exclusion of certain items from the income tax base) will only apply to oil personnel, commonly referred to as “oil well employee” [personal de pozo]. Oil well employees are defined as those who habitually and directly engage in the following activities: a) oil and gas exploration carried out in the field, and b) tasks performed at the wellhead and affected to the drilling, completion, maintenance and repair of oil and gas wells.
The amendments introduced enter into force as from the publication of the Law in the Official Gazette and take effect as indicated in each case.

6.    Sixth Title: Amendments to the Special Regime for Small Taxpayers 
The Law  modifies the amount of certain conditions that must be met to be included in the Simplified Regime for Small Taxpayers (RS). The main modifications are mentioned below.
The current wording would be replaced to allow including in said regime those taxpayers who, in the 12 immediate calendar months before the date of accession, have gained income from the activities of the regime, lower or equal to the maximum amount established for the highest category (category K).
The maximum unit sale price, in cases of sales of goods, cannot exceed ARS 385,000.

The parameters of the different categories of the Regime is:

The amount of the integrated tax to be paid monthly for each category is also modified as follows:
 

The list of exclusions from the Regime is modified. The exclusion is applicable if:
•    The sum of the gross income obtained from the activities included in the regime in the last 12 months immediately prior to the obtaining of each new gross income exceeds the maximum limit of category K. If the physical parameters of the amount of the accrued debt exceed the maxima established for Category K.
•    If the amount of the purchases plus the expenses inherent to the development of the activity made during the last 12 months amount to a sum equal to or greater than: i) 80% in the case of sales of goods, or ii) 40% in the case of leases, provision of services, and/or execution of works, of the maximum gross income established for Category K.
The Law makes certain modifications to the Social Inclusion and Promotion of Self-Employment Regime, a regime that applies to self-employed workers who need further promotion of their activities to become part of the formal economy.
In the case of leasing and/or rendering of services, no more than 6 operations may be carried out in the calendar year with the same subject. In cases of recurrence, the amount of ARS 105,000 per operation may not be exceeded.
An exception is established to pierce the ceiling provided as a condition to remain in the Social Inclusion Regime, which establishes that for the gross income obtained in the 12 calendar months immediately prior the moment of adhesion and, after the adhesion, in the 12 months immediately prior to obtaining each new gross income, the maximum amount of Category A may not be exceeded.  The gross income to be applied is allowed to pierce the ceiling by no more than ARS 520,000 when the income received corresponding to periods prior to the one under consideration must be added.
The amounts of social security contributions to be made to the Argentine Integrated Social Security System (SIPA) and to the National Health Insurance System are replaced.
The Law repeals certain rules of the Simplified Regime, among them: eliminating the exemption from the integrated tax and the monthly contribution to the SIAP for subjects associated to work cooperatives registered in the National Registry of Local Development and Social Economy Actors of the Ministry of Social Development whose annual gross income does not exceed Category A, the exemption from the integrated tax for subjects whose annual gross income does not exceed the maximum amount of Category A.
In all cases, worker cooperatives will be the withholding agent for the contributions and the integrated tax that their members must pay to the Simplified Regime.
The Executive Branch has the power to increase, during the 2024 tax period, the maximum invoicing amounts, the amounts of accrued rents, and the amounts of the integrated tax to be paid for each category, social security contributions, among other items.
The amounts of the integrated tax and social security contributions may not be increased by a percentage greater than the percentage increase established for the maximum amount of invoicing for each category.
Effective date: the provisions of this title of the Law would become effective on the day of its publication in the Official Gazette and would apply as of the first day of the month immediately following its effective date. The provisions of articles 84, 85, 86, 89, and 90 of the Law would enter into force and take effect as of January 1, 2024.

7.     Seventh Title: Tax Information for Consumers
Through the Law, the Executive Branch is proposing to amend article 39 of the VAT Law, applicable since January 1, 2025, and business will have to split VAT and other taxes in their invoices to Final Consumers or related to exempted sales.
It is also provided that taxpayers who sell, lease, or provide services to final consumers must indicate the final price and the net amount excluding VAT and other national indirect taxes that affect prices, indicating that it is the “price excluding taxes.”
Moreover, the Law prohibits using the words “for free” or similar in the advertising of events organized by any level of government to which people can freely access. In these cases, the Law establishes that it should say instead that the free access is financed by taxpayers.

8.    Eighth Title: Other Tax Provisions. Withholding tax exemption for electronic collections from small taxpayers
The Law establishes that financial institutions, entities managing debit, credit, and similar cards, and processors of electronic means of payment must withhold taxes, as provided by the federal authorities, only if the payments they process exceed certain monthly thresholds. The provinces and the City of Buenos Aires are invited to adopt similar measures.

9.    Eighth Title: Other Tax Provisions. Mining Royalties
The Law also amends article 22 of Law 24196 on Mining Investments, regarding royalties. and the Law thus establishes that the provinces adhering to the regime of the Mining Investments Law and receiving royalties or deciding to receive them may not charge a percentage higher than three percent (3%) of the "mine mouth" value of the mineral extracted. As an exception, and exclusively for mining projects that have not started construction corresponding to the exploitation stage prior to the date of entry into force of the amendment, the provinces may receive as royalties, prior adhesion to the provisions of article 22, a percentage not exceeding five percent (5%) on the wellhead value of the mineral extracted.
This amendment will become effective as from the date of publication of the law in the Official Gazette.