Budget and Finance Committee approves bill to modify the Income Tax for companies
29 abril 2021


On April 28,  the Budget and Finance Committee of the Chamber of Deputies approved the bill on Income Tax for companies. The bill is expected to be discussed in the Chamber of Deputies in the short term.

The deputies of Juntos por el Cambio expressed a general rejection of this initiative. In this regard, Facundo Suárez Lastra (UCR – opposition) stated that it would have been important for the national government “not to modify the tax burden today, when the companies of the Argentine Republic are facing a situation of absolute uncertainty”, since “it is a mistake to create a tax that will affect the generators of employment in the country”. On the other hand, representative Eduardo Fernández (FDT – ruling party) pointed out: “We contribute with coherent tax measures to support production and work with all the difficulties we have and that have been left to us”.

At the beginning of the meeting, the president of the Committee Carlos Heller (FDT – ruling party) informed that the text would incorporate two modifications:

The first would seek to include gender issues to favor “the incorporation of women, transvestites, transsexuals, and transgender persons as directors, trustees or members of the supervisory board” and refers to the deductible sums defined to the payment of fees to those employees.

The text would be added as Article 6, as follows: “Incorporate as third and fourth paragraph of Subsection i of Article 91 of the Income Tax Law (text ordered in 2019 and its amendments) the following: the fixed amount referred to in the preceding paragraph shall be increased by 40% when the recipient is a woman and by 60% in the case of transvestites, transsexuals and transgender persons, whether or not they have rectified their registration data in accordance with the provisions of Law 26.743. To the extent that corporate provisions that establish a minimum quota for the composition of the administrative and/or supervisory body of the taxpayers included in Subsection a of Article 73 are applicable, the increases provided in the preceding paragraph shall only proceed by the incorporation of members that represent a surplus that is verified in relation to the mentioned quota”.

Heller also clarified that this refers “to voluntary decisions, but it will not be applicable if the bylaws of the company or other provisions have a quota regulation: in such cases this benefit would not be applicable”.

The second addition would be incorporated as Article 10: “Clarify that the provisions of this law do not modify the treatment provided in the second paragraph of Article 73 of the Income Tax Law (text ordered in 2019 and its amendments) referred to the taxation at 41.5% of the income derived from the exploitation of games of chance in casinos, roulette, “puntibanca”, blackjack, poker and/or any other authorized game, and from the placing of bets through electronic machines, games of chance and/or automated bets of immediate resolution or not and/or through digital platforms.”

It should be noted that the bill intends to modify the scales as follows: companies with an accumulated net profit of up to 5 million pesos must pay a 25% tax rate; those with an accumulated net profit of between 5 and 20 million pesos must pay a 30% tax rate; and those with an accumulated net profit of more than 20 million pesos must pay a 35% tax rate.

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