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Update - Argentina Publishes Law Increasing Special Tax Allowance for Employees and Providing Other Relief Measures for Individuals — Orbitax Tax News & Alerts

Argentina has published Law 27617 in the Official Gazette, amending the Income Tax Law. Law 27617 entered into force on 21 April 2021 and applies retroactively from 1 January 2021. As previously reported, the law provides for an increase in the special tax allowance for employees that essentially provides an exemption from tax on monthly salary of up to ARS 150,000. Further, it is provided that the 13th-month salary is exempt from income tax for employees with monthly gross salary not exceeding ARS 150,000.

The law also provides that productivity bonuses and similar payments are exempt from tax for employees with monthly gross salary not exceeding ARS 300,000, subject to a cap equal to 40% of non-taxable income (personal allowance), and includes various other beneficial measures regarding dependent spouse allowances, child allowances, pensioner allowances, and reimbursements for travel expenses and pre-school expenses.

Lastly, the law provides for an extension of the income tax exemption previously provided in response to COVID-19 on remuneration accrued for specific and additional duties related to COVID-19 for health personnel, armed forces, security forces, and certain other individuals. The exemption is extended until 30 September 2021.