On June 2, the Senate session ended, where legislators passed the bill to modify the income tax rates for companies by creating new tax scales. The initiative, which was supported by Frente de Todos but strongly rejected by Juntos por el Cambio, obtained 36 votes in favor and 26 against. At the same time, the postponement of the primary and general elections was also approved.
Income Tax for companies and corporations
During the debate, the opposition indicated that this initiative implies an increase in the tax burden for companies. In this sense, Senator Martín Lousteau (UCR – opposition) said: “It is true that there are some companies that will pay less, others similar or a little more, but those that will pay much more are two thirds of the total sales”.
Contrary to this, Senator Anabel Fernández Sagasti (Frente de Todos – ruling party) indicated that this project is necessary in a context of pandemic. “We are taking a very important step in the sustainability of our economy and in tax justice. We are going to put a higher tax burden on a minority to promote a relief on the majority of the companies in Argentina”, she said.
The approved initiative incorporates the following tax rates:
- Companies with profits up to 5 million pesos: 25 percent.
- Companies with profits between 5 and 50 million pesos: 30 percent.
- Companies with profits over 50 million pesos: 35 percent.
Subsequently, with 55 affirmative votes, 3 negative votes and 2 abstentions, the Senate approved the bill that postpones the primary elections for September 12 and the general elections for November 14. Due to an agreement among the political forces of the Chamber, it was decided to vote the bill without prior discussion on the floor. Thus, the postponement of the elections became law.