October 5, 2023
Argentine Tax Authority establishes new income tax prepayment for financial entities, insurance companies, payment service providers
On 28 September 2023, the Argentine Federal Tax Authority (AFIP) published General Resolution No. 5424/2023 (the Resolution) establishing a new income tax prepayment for companies that provide "Financial Intermediation and Insurance Services" as their principal activity or that are registered as payment service providers.
General Resolution No. 5424
The Resolution establishes that the income tax prepayment must be paid by companies that meet both of the following requirements:
The Resolution excludes from the new income tax prepayment entities subject to the income tax prepayment established by the GR 5391/20232 and those that obtained an income tax exemption certificate.
For purposes of determining whether the above thresholds are met, the Resolution clarifies which tax years taxpayers must take into account, specifically:
The amount of the income tax prepayment is determined by applying 15% on the net taxable income of the abovementioned fiscal periods, as applicable, without considering the deduction of accumulated tax losses.
The income tax prepayment will be creditable against the corporate income tax liability determined in the following fiscal years:
The income tax prepayment will be paid in three equal, consecutive monthly installments. The due dates will depend on the month of the year-end; for example, for fiscal years ended between August 2022 and April 2023, the first due date is 23 October 2023.
For additional information with respect to this Alert, please contact the following:
Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor
1 AR$ refers to Argentinian pesos.
2 For more information, see EY Global Tax Alert, Argentine Tax Authority establishes a new corporate income tax prepayment, dated 31 July 2023.