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Argentina has implemented a new unified income tax scale. The article headline indicates a change to the income tax structure, though specific details about rates, brackets, or effective date are not provided in the available content. This represents a material change to the tax framework that may affect employee withholdings and employer obligations.
Argentina has implemented a new unified income tax scale under Article 94 of the Income Tax Law, effective 2025-01-01 through 2025-06-30. The updated withholding regime applies to employment income and features nine progressive tax brackets ranging from 5% to 35%, with thresholds adjusted for inflation using the INDEC Consumer Price Index.
Who is affected
This change affects all employers operating in Argentina who withhold income tax from employee salaries under the Article 94 withholding regime. Employees receiving employment income (remuneraciones) during the January–June 2025 period will see the new brackets applied to their accumulated net taxable income. The scale applies universally regardless of company size or industry.
What's changing
Argentina has replaced its previous income tax brackets with a new unified scale for the first half of 2025. The withholding regime now uses accumulated net taxable income as the basis for calculating tax liability.
New tax brackets (January–June 2025):
| Accumulated net taxable income (ARS) | Marginal rate | Base tax (ARS) | Threshold (ARS) |
|---|---|---|---|
| 0 – 1,520,371.67 | 5% | 0 | 0 |
| 1,520,371.67 – 3,040,743.34 | 9% | 76,018.58 | 1,520,371.67 |
| 3,040,743.34 – 4,561,115.01 | 12% | 212,852.03 | 3,040,743.34 |
| 4,561,115.01 – 6,841,672.52 | 15% | 395,296.63 | 4,561,115.01 |
| 6,841,672.52 – 13,683,345.04 | 19% | 737,380.26 | 6,841,672.52 |
| 13,683,345.04 – 20,525,017.56 | 23% | 2,037,298.04 | 13,683,345.04 |
| 20,525,017.56 – 30,787,526.34 | 27% | 3,610,882.72 | 20,525,017.56 |
| 30,787,526.34 – 46,181,289.52 | 31% | 6,381,760.09 | 30,787,526.34 |
| 46,181,289.52+ | 35% | 11,153,826.67 | 46,181,289.52 |
The official tables also provide monthly accumulated thresholds for each calendar month from January through December 2025, allowing employers to calculate withholding on a cumulative basis throughout the year.
What NEO partners and clients should do
- Update payroll systems by 2025-01-01 to reflect the new nine-bracket withholding table and ensure correct tax calculations for January 2025 salaries.
- Recalculate employee withholdings using accumulated net taxable income rather than monthly income, applying the progressive rates to cumulative earnings.
- Review monthly threshold tables published by AFIP (Administración Federal de Ingresos Públicos) to verify correct bracket application for each payroll cycle.
- Monitor AFIP communications for the second-half 2025 scale, which will be published separately with updated inflation adjustments per Law 27,743.
Sources
- https://www.afip.gob.ar/gananciasYBienes/ganancias/personas-humanas-sucesiones-indivisas/declaracion-jurada/documentos/Tabla-Art-94-LIG-enero-junio-2025.pdf
