On 11 August 2023, Argentina’s tax authorities published Dictum Law N° 5402/20231, that introduces new modifications to the country’s income tax (impuesto a las ganancias) which affects the progressive tax scales for calculating monthly withholdings in respect of dependent employees from August to December 2023. According to the new rules, a reimbursement will be effected for every employee considering his or her annual withholdings from January to July, in comparison to the annual withholdings that they would have been subject to applying the new tax scales.
Additionally, the new rules introduce an increase of the special deduction applicable to public employees, dependent employees, and retired people to reduce the tax burden of an important portion of the taxpayers.