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Argentina Implements Changes to Employer Social Contribution Regime — Orbitax Tax News & Alerts

Argentina has published Decree 99/2019 in the Official Gazette to implement amendments to the employer social contribution regime based on changes made by Law 27541 on Social Solidarity and Productive Reactivation. This includes that the applicable employer contribution rate is:

  • 20.4% for contributions by employers in the services and commerce (wholesale and retail) sectors with annual sales exceeding the thresholds to be classified as "medium-sized 2" as per Annex IV of Resolution 220/2019, as may be amended; and
  • 18.0% for contributions by other employers.

The sales thresholds as per Annex IV are:

  • ARS 607,210,000 for the services sector; and
  • ARS 2,146,810,000 for the commerce sector.

It is also provided that the standard deduction from the monthly social contribution base for each employee is set at ARS 7,003.68, while for certain employers, a higher deduction of ARS 17,509.20 is provided, including qualifying employers in the health services sector, the primary agricultural and industrial sector, and the textile, clothing, footwear and leather goods sectors. Lastly, an additional monthly deduction of ARS 10,000 is provided for employers with 25 or fewer employees

The changes generally apply from 1 January 2020.

Note - This article has been updated to reflect changes to the sales thresholds as per Resolution SECPYME No. 563/2019.