In focus

General considerations

On 4 December 2023, the Resolution was published in the official gazette, whereby the FTA implemented a new advance income tax payment on account to Argentine companies whose main activity is: (i) extraction of crude oil (including tar sands, oil shale, petroleum and bituminous mineral oils, petroleum, etc.); (ii) natural gas extraction (including liquefied and gaseous natural gas); (iii) manufacture of petroleum refining products, that have obtained an extraordinary income; or (iv) conventional thermal power generation (including electric power generation by turbo-gas, turbo-steam, combined cycle and turbo-diesel machines).

Subjects covered by the Resolution

The FTA determined that taxpayers must pay the advance income tax as long as the amount of the income tax result arising from the tax returns corresponding to the fiscal year 2022 or 2023, as the case may be, without considering the deduction of tax losses from previous years, is equal to or higher than ARS 600 million.

In order for the taxpayer to determine whether it is included in this parameter, it must consider the income tax return for the 2022 tax period if the closing of its business year took place between October and December 2022, both inclusive. For taxpayers whose fiscal year operates between January and September 2023, both inclusive, they must consider the tax return corresponding to the 2023 fiscal year.

Taxpayers not covered by the Resolution

Taxpayers that have obtained an income tax exemption certificate or that have been subject to the advance income tax set forth by Resolution No. 5391/2023 or Resolution No. 5424/2023 are excluded.

We set out below our alerts with information about Resolution No. 5391/2023 and Resolution No. 5424/2023.

https://insightplus.bakermckenzie.com/bm/tax/argentina-the-federal-tax-authority-implemented-a-new-advance-tax-applicable-to-companies-with-extraordinary-income

https://insightplus.bakermckenzie.com/bm/tax/argentina-new-advance-tax-introduced-for-financial-services-companies-with-extraordinary-income

Allocation rules of the advance income tax

Taxpayers whose fiscal year-end was between October and December 2022 shall allocate the advance income tax in fiscal year 2023.

Taxpayers whose fiscal year-end was between January and September 2023, shall allocate the advance income tax in fiscal year 2024.

Calculation of the advance income tax

Taxpayers who have obtained a tax result equal to or higher than ARS 600 million for the year 2022 or 2023, without considering the deduction of tax losses from previous years, are required to pay 15% of the tax result obtained.

Payment of the advance income tax

The Resolution establishes that the advance income tax, as well as its interest and other accessories, will be deferred in three equal installments and must be paid by electronic funds transfer through an electronic payment slip under the code "Tax-Concept-Subconcept:10-185-185", by accessing the FTA digital service called "Presentación de DDJJ y Pagos."

Timeline for the payment of the advance income tax

The FTA established due dates for each installment of the advance income tax, according to the closing of the taxpayer's business year, as shown in the table below:

If any of the due dates listed in the table fall on a non-business day, the due date will be moved to the next business day.

Relevant characteristics of the advance income tax

The Resolution establishes that the advance income tax may not be cancelled through tax compensation, nor may it be considered by the taxpayer in the estimate within the framework of the advance income tax reduction option.

Click here to read the Spanish version.