Argentina: New corporate income tax rates
The highest rate of 35% and the rate of tax imposed on dividend distributions at 7%
The highest rate of 35% and the rate of tax imposed on dividend distributions at 7%
Law 27,630 (published 16 June 2021) establishes a tiered structure of corporate income tax rates for different brackets of earnings—the lowest at 25% and the highest at 35%—as well as a tax on the distribution of dividends, imposed at a rate of 7%.
The measures are effective retroactively, for tax years beginning from 1 January 2021.
The following table sets out the tax rate measures in the new law.
Annual taxable income (ARS) |
Tax due on lower limit (ARS) |
Marginal rate on the excess of the lower limit |
0 to 5 million |
ARS 0 |
25% |
Over 5 million to 50 million |
ARS 1.25 million |
30% |
Over 50 million |
ARS 14.75 million |
35% |
Read the text of the law (Spanish)
KPMG observation
Tax professionals have noted that Law 27,430 (December 2017) established that for tax years beginning 1 January 2018 through 31 December 2019, the corporate income tax rate was set at 30% and the rate of tax imposed on dividend distributions was set at 7%. That law further provided that beginning 1 January 2020, the corporate income tax rate would be reduced to 25% whereas the tax rate imposed on dividend distributions was to have increased to 13% (from 7%).
However, article 48 of Law 27,541 (December 2019) suspended this tax rate reform “until tax years beginning on 1 January 2021 inclusive” thereby extending the 30% and 7% tax rates. Read TaxNewsFlash
With enactment of Law 27,630, the provisions of Laws 27,430 and 27,541 are no longer effective, for tax years beginning 1 January 2021.
For more information, contact a KPMG tax professional in Argentina:
Violeta Lagos | +54(11) 48915619 | vlagos@kpmg.com.ar
Hernán Caire | +54(11) 43165737 | hcaire@kpmg.com.ar
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