Tax
Argentina | Compensation income – Fourth Category: Employment relationship income
Summary
On June 27, 2024, the Congress passed the Bill N° 27.743 which introduced several amendments on income tax for employees.
Detail
Law 27.743 introduced modifications in the Income Tax in relation to employment income obtained by employees under an employment relationship with an Argentine entity.
– The most significant modification is the repeal of the “Cedular” Tax which has been established by Law 27.725, thereby reinstating the general income tax regime for all employees.
– The progressive tax rates established in Article 94 of the Income Tax Law have been modified by increasing the respective tax brackets.
These changes are effective as from January 1st, 2024.
Accordingly, net taxable income obtained by individuals and undivided estates will be subject to the following progressive tax scale for fiscal year 2024:
|
Accumulated taxable net income | You pay | |||
| More than AR$ | Up to AR$ | Fixed AR$ | Plus % |
Over the excess of |
| – | 1.200.000 | – | 5 | – |
| 1.200.000 | 2.400.000 | 60.000 | 9 | 1.200.000 |
| 2.400.000 | 3.600.000 | 168.000 | 12 | 2.400.000 |
| 3.600.000 | 5.400.000 | 312.000 | 15 | 3.600.000 |
| 5.400.000 | 10.800.000 | 582.000 | 19 | 5.400.000 |
| 10.800.000 | 16.200.000 | 1.608.000 | 23 | 10.800.000 |
| 16.200.000 | 24.300.000 | 2.850.000 | 27 | 16.200.000 |
| 24.300.000 | 36.450.000 | 5.037.000 | 31 | 24.300.000 |
| 36.450.000 | and on | 8.803.500 | 35 | 36.450.000 |
These amounts will be adjusted twice a year starting in January and July 2025, by the coefficient that arises from the annual variation of the Consumer Price Index (IPC) published by the National Institute of Statistics and Censuses (INDEC).
Without prejudice to the above, exceptionally, the amounts Indicated will be adjusted in September 2024 by IPC for the period June to August 2024, inclusive.
The general personal tax deductions have also been increased and will also be adjusted twice a year in January and July 2025, by the IPC.
In addition, the following exemptions are eliminated for income tax purposes, among others:
o Overtime
o Productivity bonus
o Supplementary annual salary (SAC)
or Travel expenses
o Mobility expenses
The last paragraph of article 94 of the Income Tax Law, which established that the overtime payment should not be considered for the purposes of modifying the scale of article 94 for income tax purposes, has been eliminated.
Additionally, the law modified the tax scale for fiscal year 2023, increasing them for employment income for work performed in foreign countries (applicable to outbounds) and on personal income (such us dividends, rents, etc.). Accordingly, this amendment will give rise to a reduction in the tax liability in FY 2023 income tax return.
|
Accumulated taxable net income | You pay | |||
| More than AR$ | Up to AR$ | Fixed AR$ | Plus % |
Over the excess of |
| – | 234.676,72 | – | 5 | – |
| 234.676,72 | 469.353,46 | 11.733,84 | 9 | 234.676,72 |
| 469.353,46 | 704.030,18 | 32.854,74 | 12 | 469.353,46 |
| 704.030,18 | 938.706,93 | 61.015,95 | 15 | 704.030,18 |
| 938.706,93 | 1.408.060,37 | 96.217,46 | 19 | 938.706,93 |
| 1.408.060,37 | 1.877.413,82 | 185.394,61 | 23 | 1.408.060,37 |
| 1.877.413,82 | 2.816.120,72 | 293.345,91 | 27 | 1.877.413,82 |
| 2.816.120,72 | 3.754.827,70 | 546.796,77 | 31 | 2.816.120,72 |
| 3.754.827,70 | and on | 837.795,93 | 35 | 3.754.827,70 |
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Lilian Falcon
Country Leader
Javier Fernandez Biondi
Sr. Manager
Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
Simply follow our Vialto Alerts page on LinkedIn and posts will be displayed on your feed. To ensure you don’t miss one, once you’re on our LinkedIn page, click on the bell icon under the banner image to manage your notifications.
Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
© 2025 Vialto Partners. All rights reserved.