Argentina: Increased Amounts not subject to Withholding Income Tax

On July 15, 2019, the Argentinian tax authority AFIP published the General Resolution 4525 which modifies General Resolution 830 by updating the amounts not subject to withholding income tax on certain incomes of different categories. The new regime will become effective on August 1, 2019.

In this modification, the AFIP increases the minimums not subject to retention by approximately 57% and by 60% for applicable scales, for example, to professional fees.

 

What are the new amounts not subject to withholding tax starting August 2019?

  • The minimum amount not subjected to withholding income tax is increased from $ 150 to $ 240
  • For urban real estate rentals received by beneficiaries, the minimum is raised from $ 650 to $ 1,020

 

The amounts not subject to withholding income tax are increased for each regime code and concept set out in the Annex of the RG 830. Some examples are:

  • Rentals: from $ 7,120 to $ 11,200
  • Disposal of personal property: from $ 142,400 to $ 224,000
  • Work sites and/or services: from $ 42,700 to $ 67,170

The Annex itself can be accessed in its original version here.

 

These are the new withholding rate thresholds:

 

Income Withholdings
Min. $ Max. $ Base Withhold $ Withholding Rate %
8.000 5%
8.000 16.000 400 9%
16.000 24.000 1.120 12%
24.000 32.000 2.080 15%
32.000 48.000 3.280 19%
48.000 64.000 6.320 23%
64.000 96.000 10.000 27%
96.000 18.640 31%

 

Why where the amounts updated?

The last modification of the minimums had effects for payments since June 1, 2018, which is why the current adjustment correspond to the inflation of the period. Adjusting the inflation minimums protects taxpayers from suffering greater withholdings because of the nominal increase in prices.

 

These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!