On 8 June 2022, Argentina’s tax authorities published General Resolution 5204/2022 to announce an update of the parameters for determining if an individual is subject to file the Informative Income Tax and Wealth Tax returns for the 2021 tax year.1 (For prior coverage, see GMS Flash Alert 2022-111, 7 June 2022.)
The norm establishes the obligation to file an informative tax return for those individuals who have obtained a certain gross amount of compensation in the fiscal year (whether they are taxed, exempt, and/or not liable for income tax). The update sets the new amount at ARS 3,700,000.
WHY THIS MATTERS
This update may change the filing requirements for those employees in Argentina whose annual gross income during 2021 was between ARS 2,500,000 and 3,700,000, thereby subjecting fewer individuals to this filing obligation.
The informative tax return deadline is 30 June.
The obligation to file an informative Income and Wealth Tax return applies to individuals whose only source of income is employment income subject to withholding at the source and whose annual gross income exceeds the minimum set by the Argentine tax authorities (currently set at ARS 3,700,000).
The due date established for this type of filing is 30 June 2022.
Companies with globally-mobile employees who are part of an Argentine payroll should consult with their tax service professionals about the population that would need to file the informative tax returns considering the new parameter around income, because this modifies the information that was initially required.
1 See (in Spanish) the “Resolución General 5204/2022” published in the Boletín Oficial at: https://www.boletinoficial.gob.ar/detalleAviso/primera/264164/20220608.
ARS 1 = USD 0.00814
ARS 1 = EUR 0.007776
ARS 1 = GBP 0.00667
ARS 1 = BRL 0.0417
The information contained in this newsletter was submitted by the KPMG International member firm in Argentina.
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