In focus
- Context: Origin and nature of the Solidarity Contribution
The Solidarity Contribution was created by Law 27,605, published on 18 December 2020, as an exceptional measure to help mitigate the effects of the COVID-19 pandemic. This contribution taxed estates exceeding ARS 200 million (approximately USD 2.5 million at the exchange rate on the date of enactment), with progressive rates between 2% and 5.25%. Individuals and undivided estates resident in Argentina, as well as certain subjects resident abroad, were subject to the contribution on all their assets in Argentina and abroad. The purpose of the contribution was to generate extraordinary resources to address the health and social emergency caused by COVID 19.
- The Opinion
The Opinion analyzes the request to deduct the contribution in the income tax return for fiscal year 2021. In this context, it cites relevant doctrine and case law on the concept of "necessary expense," highlighting the causal connection between the expenditure and the generation of taxable income. Further, it concludes that, in the absence of an express prohibition in Law 27,605 or the Income Tax Law (ITL), the deduction should be admitted under the general principle of Articles 23 and 83 of the ITL.
Thus, although the recitals of the Opinion reveal divergent positions within the tax administration, the final view holds that the Solidarity Contribution may be considered a necessary expense for obtaining, maintaining and preserving taxable income, to the extent that it applies to assets generating taxable income.
Accordingly, ARCA concludes that the deduction must be made in proportion to the assets used to generate taxable income with respect to the total assets subject to the contribution. When the contribution originates from assets that produce both taxable and non-taxable income, the allocation method provided in Article 83 of the Income Tax Law should be applied.
- Reimbursement claim
In light of Opinion No. 2/2025, taxpayers who have paid the Solidarity Contribution and did not deduct it in their income tax balance sheet may request a refund from ARCA, through a reimbursement claim, for any excess income tax paid as a result of not having computed this deduction.
Spanish version
