The final draft of the Work Modernization Act reduces employer contributions by 3% and also reduces the income tax rate paid by companies to a maximum of 31.5%.among other tax cuts that significantly reduce the cost of doing business.
How much is the reduction in employer contributions?
The labor reform reduces employer contributions As of: January 1, 2026 as follows:
1. The contribution to Social Welfare Union of 5%.
2. Employer contributions for retirement (ANSES), PAMI, employment fund and family allowance fund are modified as follows:
- For large companies and up to the limit of medium-sized businesses, Tranche 2 of trade and services, reduces the contribution from 20.4% to 17.4%.
- For him Rest of SMEs and industrythe contribution increases from 18% to 15%
How taxes will be reduced in labor reform
Corporate tax
The project reduces income tax for companies, both SMEs and large companies Exercises from January 1, 2026.
In this sense, The 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.
What is the incentive for new investments?
The project creates a The Incentive Regime for Medium Investments (RIMI) focuses on promoting productive projects led by domestic and foreign companies.
The Minimum investment amounts The required information varies depending on the size of the signature:
- $150,000 for microbusinesses.
- $600,000 for small businesses.
- $3.5 million for medium SMEs in the first tranche.
- $9 million for medium SMEs in the second tranche.
- $30 million for large companies.
The system provides advantages such as accelerated profit amortization, early refund of VAT from the third tax period and the ability to replace assets without loss of benefits.
According to the official project, only productive investments were made Acquisition, preparation, manufacture or import of new personal property (except cars), as well as the performance of work directly affected by productive activity in the country.
The labor reform therefore includes reducing trade tax costs, including through a 3% reduction in employer contributions, a reduction in the maximum income tax rates and the abolition of internal taxes.
About The Author
