The Labor Modernization Bill introduces a structural reform to the regulatory framework governing labor relations in Argentina, amending fundamental laws such as the Employment Contracts Law (No. 20744), the Trade Union Law (No. 23551), and the Collective Agreements Law (No. 14250), among others.
Central axes of reform It is the flexibility of contracting methods, and redefining the calculation base to compensate for dismissalAnd creating an alternative system for terminating work – Limiting the powers of trade unions, especially with regard to direct action measures.
Changes in profits, VAT and internal taxes
Value added tax
With regard to value-added tax, the labor reform project in subsection (m) of paragraph four of Article (28) of the value-added tax law includes the following:
“M) Electrical energy used in irrigation systems and/or equipment in the agricultural industry sector.”
income tax
With regard to profits, the eleventh paragraph of Article (25) of the Income Tax Law shall be replaced with the following text:
“Losses resulting in fiscal years beginning on or after January 1, 2025, Including, it will be updated taking into account the difference in the general consumer price index (CPI) provided by the National Institute of Statistics and Census, a decentralized body operating within the scope of the Ministry of Economy, operating between the closing month of the fiscal year in which it arose and the closing month of the fiscal year in which it was settled, without applying the provisions of the first paragraph of Article 93 of this law.
Moreover, it has been proven:
Subsection n) of Article 26 of the Income Tax Law shall be replaced by the following:
“n) Profits generated from renting real estate for residential use and the rental value of the residential dwelling.
Likewise, the result derived from INA is also exempt.Sale of real estate and transfer of real estate rights covered by the provisions of Article 99 of this law and which are sold or transferred as of January 1, 2026, This is in the manner specified by the regulations in this regard.”
Replace the last paragraph of Subsection U) of Article 26 of the Income Tax Law with the following:
“In the case of values covered by the provisions of Article 98 of the law, with the exception of digital currencies, the subjects covered by that article are also exempt from the consequences of purchasing, exchanging, trading, or disposing of them, whether they are listed on stock exchanges or markets authorized by the Securities Commission or not, without applying the provisions of Article 109 of the Tax Law.”
Joined, with effects to Fiscal years beginning on or after January 1, 2026, As an unnumbered article, Article 58 of the Income Tax Law follows the text issued by the 2019 Order and its amendments as follows:
“Article…- Owners of wintering and/or fattening establishments referred to in point 2 of subsection d) of the first paragraph of Article 56 of this Law may choose to value their stocks by the methods described in subsections a) or b) of Article 57 of this Legal Standard, depending on the type of farm in question. To calculate the valuation of “calves” and “heifers”, taxpayers may use the relationship indicators given in the tables appended to Law No. 23.079, for all “calves” corresponding to “cow from One to two years” and for all “calves” that correspond to “calves from one to two years”, depending on the variety in question.
The table ratios of subsection (a) of Section 73 of the Income Tax Law of 2019, as amended, are amended for fiscal years beginning on or after January 1, 2026, inclusive, as follows:
a) Where you say “30%” it should become “27%”,
b) Where it says “35%” it should be “31.5%”.
Internal taxes
Finally, the labor reform project abolishes the tax stipulated in the Internal Tax Code on: insurance, cellular and satellite phone services, luxury items, cars and motor vehicles, recreational or sports boats and aircraft.