Law N° 27,260, published in the Official Gazette on July 22, 2016, contains -apart from other legal and tax issues-: (i) a payment plan and (ii) a tax reform.

Hereinafter we include the main aspects of the payment plan and the tax reform.

  1. Payment Plan

1.1. Who can access to such benefit? 

The tax payers and the entities or natural persons responsible for the payment of taxes and social security resources for those tax obligations due by May 31, 2016 or for the infractions related with such tax obligations, excluded the payments to health insurance and labor risks insurance.

1.2. When can be requested the benefit?

The benefit can be requested from the first calendar day of the following month of the publication of the regulation up to March 31, 2017.

1.3. Which are the requirements to access the benefits?

  1. Withdrawal of all actions and rights, including the right to request a recovery action, and acceptance of judicial fees.
  2. Payment of the tax, fines and interest -except those interest that may be released- through one of the following payment plans:
  • Total payment with a 15% reduction of the consolidated debt;
  • Payment through one of the payments plans regulated by the Federal Tax Authority, which will have the following characteristics:
  1. One down payment representing 5% of the debt and the outstanding balance in 60 monthly installment -at most- with a monthly interest of 1,5%.
  2. The "Micro y Pequeñas Empresas" (small companies) may chose to pay a down payment representing 10% of the debt and the outstanding balance in 90 monthly installment -at most- with a monthly interest equivalent to the average passive rate of the Argentine National Bank.
  3. The "Medianas Empresas y los Grandes Contribuyentes"(medium and large companies) may chose to pay a down payment representing 15% of the debt and the outstanding balance in 90 monthly installment -at most- with a monthly interest equivalent to the average passive rate of the Argentine National Bank of at least 1,5%.

1.4. Which are the benefits?

  1. Suspension of criminal proceedings and interruption of criminal statute of limitations, provided that there is not final judgment.
  2. Release and/or forgiveness of:
  • Fines and other sanctions as long as there is not final judgment.
  • Interest, in the portion that exceeds:
  1. 10% of the tax debt for those obligations corresponding to fiscal year 2015 and monthly obligations due by May 31, 2016.
  2. 25% of the tax debt for those obligations corresponding to fiscal years 2013 and 2014.
  3. 50% of the tax debt for those obligations corresponding to fiscal years 2011 and 2012.
  4. 75% of the tax debt for those obligations corresponding to fiscal years 2010 and the previous periods.

1.5. Which are the consequences of not fulfilling the requirements plan?

  1. The criminal action will be reinitiated or the criminal complain will be filed;
  2. The criminal statue of limitation will resume; and
  3. The payment of the remaining debt should be made in cash. 
  1. Tax Amendment

2.1. Law on Personal Assets

The main changes in the Personal Asset Tax Law are:

  1. The personal assets of Argentine natural persons or undivided successions located in Argentina -except assets related with shares or participations in Argentine entities- will not trigger tax on personal assets when the total value of such assets does not exceed:
  • For fiscal period 2016, AR$ 800,000 or less (approximately, USD 53,000)
  • For fiscal period 2017, AR$ 950,000 or less (approximately, USD 63,300)
  • For fiscal period 2018 and the following periods, AR$ 1,050,000 or less (approximately, USD 70,000)
  1. The tax rate applicable on personal assets of Argentine natural persons or undivided successions located in Argentina -except assets related with shares or participations in Argentine entities- will be:
  • For fiscal period 2016, 0.75%
  • For fiscal period 2017, 0.50%
  • For fiscal period 2018 and the following periods, 0.25%The tax rate will be applied on the total value of the assets that exceeds the amounts mentioned in a).
  1. The tax rate applicable to assets related with shares or participations in Argentine entities will be 0.25%
  2. The entities, natural persons or undivided successions domiciled or located in Argentina that (i) have the condominium, possession, use, enjoyment, disposal, storage, possession, custody, administration or custody of assets subject to tax on personal assets; and (ii) such assets belong to entities, natural persons or undivided successions domiciled or located abroad; will have to pay the tax based on the value of such assets located in Argentina in December 31, of each year. The applicable tax rate are:
  • For fiscal period 2016, 0.75%
  • For fiscal period 2017, 0.50%
  • For fiscal period 2018 and the following periods, 0.25%

2.2. Income Tax Law

The main amendment of the Income Tax Law is the elimination of the 10% tax applied on the distribution of dividends to natural persons, undivided successions located in Argentina and foreigner beneficiaries.

2.3. Minimum Presume Income Tax Law

The Minimum Presume Income Tax Law is repealed for those tax years that initiate as from January 1, 2019.