Argentina Issues Guidance on Withholdings of Individual Income Tax
Argentina
Guidance from the Argentine tax authorities (Administración Federal de Ingresos Públicos—AFIP) concerns individual income tax. Resolutions 2866 and 2867 (published in the official gazette Boletín Oficial de la República Argentina (No. 31.941, 12 July 2010)) address the amounts that employers must consider in calculating withholdings of individual income tax, due to a 20-percent increase in the amount of personal allowances, and the effect of certain advanced payments of individual income tax.
• Resolution 2866 sets forth the new personal allowances for use by employers/withholding agents. The new withholding amounts are to be used for salaries for the months July to December 2010.
• Resolution 2867 sets forth procedures that individual taxpayers, having made advanced payments of income tax for 2010, may use to recalculate the basis of their tax liability.
The guidance in the resolutions was issued in advance of revisions to Article 23 of Argentina’s income tax law (concerning personal allowances) which has not yet been published.
Source: KPMG
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