Senate passes the 2019 Budget after lengthy debate
Argentina
16 noviembre 2018

In the early hours of November 15, the Senate enacted the 2019 Budget, with 45 votes in favor, 24 against and 1 abstention; also passed was the fiscal agreement between national and provincial governments, and a modification to income tax rates. The reform of the Personal Property Tax was amended following negotiations with the Justicialista bloc, and so the bill on this must now return to the Chamber of Deputies for final approval.

The 2019 Budget offers plenty of changes, among them an amendment to the Customs Code (Law 22.415). Services provided in the country but used abroad will, from now on, be viewed as goods for tax purposes. Suppliers will have exporter status and will be required to pay export duties equivalent to 12 percent as of January 1. Duty levels will be set according to total amounts invoiced for. Also coming into effect are two Trusts that will grant loans, guarantees and bonds to back up public infrastructure contracts or public-private participation projects. Tax breaks are also to be granted to public-private participation projects at the provincial level.

The reform of the Personal Property Tax that raises the non-taxable minimum from $ 1,050,000 to $ 2,000,000 as of 2019 and establishes a new scheme for the progressivity of the tax, was passed with 58 votes in favor. The Senate introduced two amendments: it exempts real estate worth up to 18 million pesos whenever it is used for housing, and it exempts the income public health sector professionals derive working in deprived communities. Under no circumstances may the Chamber introduce new changes. Finally, by 53 votes in favor and 8 against, a bill was passed annulling the prohibition of the updating of accounting records based on inflation.

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