6-3-2026

Law No. 27,802 on Labor Modernization (published in the Official Gazette on March 6, 2026), in addition to introducing changes to the Labor Contract Law and related regulations, establishes certain tax modifications, which are summarized below:

Incentive Regime for Medium-Sized Investments (RIMI)

An incentive regime is created for SMEs that carry out productive investments (acquisition or manufacturing of new movable assets —excluding automobiles— and construction works directly related to the development of productive activities in the country) during the first two years, counted from March 6, 2026. Investments in financial assets, portfolio investments, and inventories are excluded.

The RIMI grants benefits such as accelerated tax depreciation for the invested fixed assets and the possibility of accessing the early refund of the VAT technical credit balance.

The minimum investment thresholds are as follows:

• Micro-enterprises: USD 150,000
• Small enterprises: USD 600,000
• Medium-sized enterprises – Segment 1: USD 3,500,000
• Medium-sized enterprises – Segment 2: USD 9,000,000

Adjustment of Tax Loss Carryforwards

Tax losses generated in fiscal years beginning on or after January 1, 2025 may be adjusted based on the variation of the Consumer Price Index.

Elimination of the Schedular Tax on the Sale of Real Estate

Income obtained by individuals from the sale of real estate or the transfer of rights over real estate will no longer be subject to Income Tax, unless the taxpayer is engaged in habitual real estate trading, for transactions carried out as from January 1, 2026.

Income Tax Exemption for Residential Rental Income

Rental income obtained by individuals from the lease of properties intended for residential use will be exempt from Income Tax for fiscal years beginning on or after January 1, 2026.

Income Tax Exemption for  Interest on U.S. Dollar Fixed-term Deposits

The Income Tax exemption applicable to interest from fixed-term deposits in pesos held by individuals in local financial institutions is extended to include interest earned on fixed-term deposits in U.S. dollars for fiscal years beginning on or after January 1, 2026.

Valuation of Feedlot and/or Livestock Fattening Establishments

Such establishments will be allowed to opt for the livestock valuation method applicable to breeding establishments (“estimated cost based on annual revaluation”), for fiscal years beginning on or after January 1, 2026.

Tax Residency of Foreign Individuals

Foreign individuals who obtain Argentine citizenship through naturalization as a result of having made significant investments in the country, under subsection 2 of Section 2 of Citizenship Law No. 346, will not be considered Argentine tax residents solely as a consequence of such naturalization.

VAT Reduction on Electricity Used for Irrigation Systems and/or Equipment

The VAT rate applicable to the supply of electricity used in irrigation systems and/or equipment in the agro-industrial sector will be reduced by 50%, effective April 1, 2026.

Elimination of Other Taxes

Excise taxes on insurance, cellular and satellite telephone services, luxury goods, and motor vehicles and engines, recreational or sports vessels, and aircraft are eliminated as from April 1, 2026.

Additionally, the Tax on Cinematographic Show Ticket Sales and the Tax on Recorded Videograms will be eliminated as from January 1, 2028.