Argentina: Inflation adjustment for income tax calculation purposes

The fiscal year beginning 1 January 2021 is subject to full application of the inflation adjustment.

Income tax calculation purposes

The Chamber of Deputies on 17 December 2021 rejected a draft of the general federal budget law for the fiscal year of 2022.  

As proposed, a provision in the budget legislation would have deferred the inflation adjustment to be used in calculating income tax (whether a positive or negative adjustment) corresponding to the first and second fiscal years beginning with 1 January 2021.  As proposed, one-third of the adjustment would have to be allocated to the subject year and the remaining two-thirds allocated equally to the immediately following two fiscal periods.

Given the Chamber of Deputies’ rejection of the budget legislation, the inflation adjustment for income tax purposes will be applied with no deferrals. Accordingly, the fiscal year beginning 1 January 2021 is subject to full application of the inflation adjustment (as implemented by Law 27,430).
 

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

Hernán Caire | +54(11) 4316 5737 | hcaire@kpmg.com.ar

Violeta Lagos | + 54(11) 4316 5619 | vlagos@kpmg.com.ar

 

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