Government to Send Changes to Tax Amnesty Bill to Congress: What's Modified and Who It Affects

Economy Minister Luis Caputo, together with the Legal and Technical Secretary of the Presidency, María Ibarzabal Murphy, presented this Wednesday in a press conference a series of modifications to the Tax Amnesty bill. The initiative, which had already been approved, will now be sent to Congress with changes that seek to broaden its scope and provide greater guarantees to taxpayers.

What changes in the Tax Amnesty bill

According to Caputo, the spirit of the law does not change: the goal remains that undeclared savings can be formalized in the banking system without penalties. However, four key modifications were introduced, developed based on observations from tax lawyers and a working group with specialists.

The first change eliminates the income and asset requirements to access the simplified regime. Currently, to enter, the taxpayer must simultaneously meet three conditions: annual income not exceeding one billion pesos, total assets not exceeding ten billion pesos, and not being considered a «Large Taxpayer» by ARCA. The bill eliminates these caps, leaving the regime open to all resident individuals and undivided estates, with one caveat: «Large Taxpayers» may adhere to the simplified modality, but they will not enjoy the presumptions or liberating effects.

The second change touches a sensitive point: when can the tax authority break the taxpayer’s presumption of accuracy. Currently, if ARCA’s challenge results in an increase of 15% or more over what was declared, the presumption automatically falls. The bill introduces a minimum threshold: even if the 15% is exceeded, the presumption is not broken if the nominal difference claimed does not reach the equivalent of 5% of the evasion amount provided for in the Criminal Tax Law. In concrete numbers, if the difference does not exceed five million pesos, the presumption is maintained.

The third change extends the deadline to rectify. If ARCA detects a significant discrepancy, the taxpayer may file an amended tax return and pay the difference (plus interest) within up to 15 business days from notification of the official assessment.

The fourth change provides an additional tool: if the taxpayer challenges the assessment and obtains a final ruling in their favor, the presumption of accuracy is fully restored, and ARCA is obliged to reimburse the contributions paid with interest within no more than 45 business days from notification.

Who it affects and from when

These modifications directly impact taxpayers who keep savings outside the financial system. According to data from the Ministry of Economy, dollar deposits in the financial system are at record levels close to 40 billion dollars, but there is an amount more than four times that figure in savings kept outside the banking circuit. Caputo noted that formalizing these resources represents a benefit both for citizens and for the development of the economy.

The bill still must be considered by Congress, so its entry into force is subject to legislative approval. Meanwhile, interested taxpayers will have to wait for the final regulations.

Concrete consequences

• Immediate: If approved, income and asset caps are eliminated, allowing more people to adhere. Also, the deadline to rectify declarations is extended, giving more time to correct errors.
• Conditional: «Large Taxpayers» may adhere, but without full benefits, which could limit their participation. Effectiveness will depend on ARCA’s regulations.
• Still uncertain: The impact on revenue and on the formalization of the economy is uncertain, as it depends on the number of taxpayers who adhere and on the evolution of inflation and the exchange rate.

Value module

According to the Ministry of Economy, savings outside the financial system exceed four times the dollar deposits in the system, which are around 40 billion dollars. This would imply an amount exceeding 160 billion dollars not formalized.

They are not converted to pesos because the source uses dollars and no official exchange rate is indicated in the material.

What to follow

It is advisable to follow the treatment of the bill in Congress and ARCA’s regulations, especially regarding the definition of «Large Taxpayer» and the procedures for rectifying declarations. It will also be key to observe the evolution of dollar deposits to measure the impact of the law on the formalization of savings.