Argentina: New corporate income tax rates

The highest rate of 35% and the rate of tax imposed on dividend distributions at 7%

The highest rate of 35% and the rate of tax imposed on dividend distributions at 7%

Law 27,630 (published 16 June 2021) establishes a tiered structure of corporate income tax rates for different brackets of earnings—the lowest at 25% and the highest at 35%—as well as a tax on the distribution of dividends, imposed at a rate of 7%.

The measures are effective retroactively, for tax years beginning from 1 January 2021.

The following table sets out the tax rate measures in the new law.

Annual taxable income (ARS)

Tax due on lower limit (ARS)

Marginal rate on the excess of the lower limit

0 to 5 million

ARS 0

25%

Over 5 million to 50 million

ARS 1.25 million

30%

Over 50 million

ARS 14.75 million

35%


Read the text of the law (Spanish)  

KPMG observation

Tax professionals have noted that Law 27,430 (December 2017) established that for tax years beginning 1 January 2018 through 31 December 2019, the corporate income tax rate was set at 30% and the rate of tax imposed on dividend distributions was set at 7%. That law further provided that beginning 1 January 2020, the corporate income tax rate would be reduced to 25% whereas the tax rate imposed on dividend distributions was to have increased to 13% (from 7%).

However, article 48 of Law 27,541 (December 2019) suspended this tax rate reform “until tax years beginning on 1 January 2021 inclusive” thereby extending the 30% and 7% tax rates. Read TaxNewsFlash

With enactment of Law 27,630, the provisions of Laws 27,430 and 27,541 are no longer effective, for tax years beginning 1 January 2021.


For more information, contact a KPMG tax professional in Argentina:

Violeta Lagos | +54(11) 48915619 | vlagos@kpmg.com.ar

Hernán Caire  | +54(11) 43165737 | hcaire@kpmg.com.ar

 

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