Argentina’s Congress has approved legislation that significantly expands access to the Simplified Income Tax Return regime and strengthens the legal protections available to resident individual taxpayers. The bill is awaiting promulgation and publication in the ‘Boletin Oficial’ before becoming effective.1
WHY THIS MATTERS
The legislation significantly expands access to Argentina's Simplified Income Tax Return regime by removing the previous income and net worth thresholds, potentially allowing a broader population of resident individuals to benefit from simplified filing and enhanced tax certainty protections. The changes may also be relevant for certain internationally mobile employees and expatriates who remain Argentine tax residents throughout the tax year.
At the same time, the reform introduces a requirement that individuals could remain Argentine tax residents throughout the fiscal year in order to access the regime. As a result, some mobile employees, including individuals who lose Argentine tax residency during the year or repatriates who become Argentine tax residents partway through the year, may fall outside the scope of the simplified framework. For employers managing international assignment populations, the rules may therefore create both opportunities and limitations, making individual eligibility reviews increasingly important.
With the filing deadline for 2025 Argentine individual income tax returns currently extended until 13 October 2026, employers and affected employees may have limited time to assess the potential impact of the new rules following the formal enactment of the legislation and the issuance of implementing guidance.
More Details
Expanded Access to the Simplified Income Tax Return Regime
- The legislation significantly expands access to the Simplified Income Tax Return regime by eliminating the previous income and net worth thresholds. As a result, any individual who qualifies as an Argentine tax resident may elect the simplified filing option for fiscal years beginning on or after 1 January 2025.
- To qualify, individuals are required to remain Argentine tax residents throughout the entire fiscal year for which the simplified return is filed. ARCA Large Taxpayers and certain public officials may also use the simplified filing mechanism, although without access to certain protective features of the regime.
- The new rules apply beginning with fiscal year 2025. In this context, the filing deadline for 2025 individual income tax returns has been extended until 13 October 2026, providing additional time for eligible taxpayers who may have been awaiting enactment of the reform to evaluate and access the simplified regime.
- The changes are not expected to adversely affect taxpayers who previously filed and paid their 2025 income tax return under the simplified regime in accordance with the rules in force at the time.
Greater Certainty Through Revised Challenge Thresholds
- The reform strengthens the protections available under the simplified regime by narrowing the circumstances in which ARCA may challenge a taxpayer's filing.
- A challenge generally requires a discrepancy of at least 15 percent and above a minimum materiality threshold established by law. Minor differences would no longer result in the loss of the regime's benefits.
- In addition, taxpayers would have 15 business days to amend their return and regularize any tax and interest due following an ARCA notification, without triggering the loss of the regime's protections.
Reduced Reporting Burden and Formalization Measures
The legislation also seeks to reduce information reporting requirements and facilitate the use of previously undeclared funds within the formal financial system, while limiting automatic retroactive tax scrutiny for taxpayers covered by the regime's protections.
KPMG INSIGHTS
The approved legislation expands the availability of the Simplified Income Tax Return regime while simultaneously introducing a requirement that individuals remain Argentine tax residents throughout the relevant fiscal year in order to qualify for its benefits. As a result, eligibility would depend not only on income levels or personal wealth but also on an individual's tax residency profile during the year.
In light of the changes, employers might wish to consider the following:
- Monitoring the promulgation and publication of the law, together with implementing guidance issued by ARCA.
- Identifying employees who maintained Argentine tax residency throughout the relevant fiscal year.
- Reviewing the circumstances of outbound assignees who may lose Argentine tax residency during the year.
- Assessing the eligibility of repatriates who became Argentine tax residents partway through the year.
- Consulting with their tax advisers regarding employees who may benefit from, or be excluded from, the revised regime.
If assignees and/or their programme managers have any questions or concerns about the scope of the update, its application and potential impacts, and appropriate next steps, they should consult with their qualified professional or a member of the GMS team with KPMG in Argentina (see the Contacts section).
ENDNOTE:
1 Honorable Senado de la Nación Argentina (in Spanish), “Se convirtió en ley Inocencia Fiscal II y el nuevo régimen de biocombustibles obtuvo media sanción,” published on 17 September 2026.
Contacts
More Information
Explore all GMS Flash Alert Topics
Explore GMS Flash Alert Newsletters & Trackers
Disclaimer
The information contained in this newsletter was submitted by the KPMG International member firm in Argentina.
GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2026 KPMG, KPMG, una sociedad argentina y firma miembro de la red de firmas miembro independientes de KPMG afiliadas a KPMG International Ltd, una entidad privada Inglesa limitada por garantía que no presta servicios a clientes. Derechos reservados.