The Argentine government has announced plans for the introduction of a windfall tax for companies that realize net taxable income of at least ARS 1 billion in 2022, a significant increase in net taxable income as compared to 2021, and an abnormally high operating margin in 2022. The windfall tax is proposed in the context of the war in Ukraine, which could have a positive impact on the profits of Argentine companies in certain areas, such as export sales of cereal crops. Proceeds from the tax are to be used to help lower-income earners and pensioners deal with higher costs resulting from inflation.
The proposal is to be further developed and discussed in Congress in the coming weeks. Additional details will be published once available.