The Labor Modernization Law project introduces a structural reform of the regulatory framework that governs labor relations in Argentina, amending, among others, fundamental laws such as the Labor Contract Law (No. 20,744), the Law on Trade Union Associations (No. 23,551) and the Collective Bargaining Law (No. 14,250).
The central axes of the reform are the flexibility of the contractual modalities and the new determination of the assessment basis for termination compensationthe creation of an alternative work termination system and limiting the power of trade union federations, particularly with regard to direct action measures.
Changes in profits, VAT and internal taxes
VAT
Regarding VAT, the labor reform project includes, as subsection m) of the fourth paragraph of Article 28 of the VAT Law, the following:
“m) Electrical energy used for irrigation systems and/or equipment for the agro-industrial sector.”
Income tax
With regard to profits, paragraph 11 of Article 25 of the Income Tax Law is replaced by the following:
“Losses arising in fiscal years beginning on or after January 1, 2025, They are updated, among other things, taking into account the fluctuations in the general consumer price index (CPI) provided by the NATIONAL INSTITUTE OF STATISTICS AND CENSUS, a devolved body within the MINISTRY OF THE ECONOMY, which operates between the final month of the financial year in which they were created and the final month of the financial year in which they are accounted for, without the provisions of the first paragraph of Article 93 of this Law being applicable.
In addition, it is noted:
Article 26(n) of the Income Tax Law is replaced by the following:
“n) Profits from the rental of real estate for residential purposes and the rental value of the dormitory.
The result derived from the ena is also excluded.Sale of real estate and transfer of rights to real estate within the meaning of Article 99 of this Law, sold or transferred from January 1, 2026, in the conditions laid down in this regard by the Regulation.”
Replace the last paragraph of Article 26, subsection u) of the Income Tax Law with the following:
“In the case of values falling under the provisions of Article 98 of the Law, with the exception of digital currencies, the subjects referred to in this article are also exempt from tax for the results of their purchase, exchange, exchange or disposal, whether or not they are listed on stock exchanges or markets approved by the National Securities Commission, without the provisions of Article 109 of the Tax Law being applicable.”
Join to make an impact Fiscal years beginning on or after January 1, 2026, As an unnumbered article subsequent to Article 58 of the Income Tax Law, text arranged in 2019 and its amendments, the following:
“Article… – The owners of the wintering and/or fattening farms referred to in Article 56, paragraph 1, subsection d) number 2 of this Law may choose to value their stocks according to the methods described in Article 57, subsection a) or b) of this legal norm, depending on the type of farm in question. To calculate the valuation of the “heifers” and “oxen”, taxpayers may use the relationship indices contained in the tables attached to the Law No. 23,079, for all “heifers” that corresponds to “heifers aged one to two years”, and for all “steers” that corresponds to “steers aged one to two years”, depending on the category.
The rates of the tariff table of Article 73 subsection a) of the Income Tax Law up to 2019 and its amendments are changed for financial years beginning on or after January 1, 2026 as follows:
a) Where it says “30%” it should read “27%”.
b) Where it says “35%” it should read “31.5%”.
Internal taxes
Finally, the labor reform project repeals the tax on insurance, mobile phone and satellite phone services, luxury items, etc. provided for in the internal tax law Motor vehicles and enginesPleasure or sports boats and airplanes.
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