As soon as he landed in Buenos Aires after his trip to Oslo, President Javier Milei wasted no time in signing the project Labor reform to which is sent senate in the next few hours.
A video captured the moment in an office in the military area of Jorge Newbery Airport, shortly after Milei landed in the official ARG-01 aircraft after attending the Nobel Peace Prize ceremony Maria Corina Machado. Although he had no direct contact with her, the president attended the gala, where the daughter of the Venezuelan opposition leader spoke.
In the video, Milei appears accompanied by the Chief of Staff, Manuel Adorniand at the conclusion of the signing of the labor reform project, he released a message of economic and labor dynamics: “For more growth, for more prosperity, for more work, so that Argentina can become great again,” concluded with his usual exclamation: “Long live freedom, damn it!”
What is expected from the reform?
The full content of the initiative will be announced in the next few hours, but official sources believe that the project will bring relevant changes in the relationship between employers and employees.
According to the latest draft, the aim is to reform Reduce labor costs, promote job creation and formalization, attract new investments and simplify administrative procedures.
In the Employment contract lawInterpretation criteria are eliminated such as: “Social Justice” and approved transactional, reconciliation or liberation agreements are given the effect of res iudicata, with the aim of reducing judicialization.
Aside from that, the analogous application of collective agreements remains ineffectivethereby limiting the mandatory scope of these agreements.
Compensation and probationary period
The general rule still applies to terminations: In the event of dismissal without good cause after the end of the probationary period, compensation is calculated in the amount of one month’s salary for each year of service or for the fraction exceeding three months.
The calculation takes place on best monthly, normal and customary pay received in the last yearor, failing that, for the period of time that actually worked.
What advantages do companies have from labor reform?
Corporate tax
The project reduces the Income tax for companies, both SMEs and large companies, e.g Exercises from January 1, 2026.
In this sense, lThe 30% win rate drops to 27% and the 35% cap is reduced to 31.5%.
financial income
In the same way, There is no taxation of financial income from certain instrumentsexcept cryptocurrencies.
The benefit applies to the purchase and sale of bonds, negotiable debentures, stocks, mutual funds and Cedear. with or without listing on authorized markets from the National Securities Commission (CNV).
Internal taxes
Regarding internal taxes, “Luxury taxes” disappear on cars, cell phones and other electronic devices.
Overall, motor vehicles, motorcycles, airplanes, boats, etc. are exempt from domestic taxes Objects that are considered precious.
The measure also extends to other goods and services: Insurance, film screeningsrecorded videograms, mobile phones, audiovisual communications and rental of apartments that do not span multiple locations.
Rental and sale of real estate for people
It sets Income tax exemption for the rental of properties intended for individual habitation. The regulation stipulates that the income generated is no longer taxed if a person offers a property as living space for third parties.
In addition, it is expected that the The sale of real estate by people is excluded from January 1, 2026. This applies to developed land or land.
Tax relief for rural areas
The reform leads the VAT exemption for electrical energy Used in irrigation systems in the agro-industrial sector.
Also the update Property valuationAdjustment of criteria to postpone evaluation until the end of the animal production cycle.
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