Politics Economy Local 2026-02-04T02:21:35+00:00

Argentine Government Negotiates Corporate Income Tax Cut

Argentina's Government is discussing a corporate income tax cut with provincial governors, sparking concerns about provincial budgets. Patricia Bullrich of 'La Libertad Avanza' announced near-total agreement on a labor reform proposal.


Argentine Government Negotiates Corporate Income Tax Cut

The Government is negotiating with governors a reduction in corporate income tax rates, a point resisted in the provinces as it will impact provincial budgets in 2027, the year when leaders will put their management on the line and many will seek a new term. Allied governors want to compensate for the decrease in their revenues due to the reduction in corporate income tax (from 35% to 31.5%), as the provinces claim they will lose 3 trillion pesos, although the Government states that the figure does not even reach half of that amount. Radical Eduardo Vischi said about the fiscal chapter: 'So far we have doubts; it is one of the issues that really concern us, because in the end it has to do with forecasts that are fundamental for the provinces.' In the Senate, they believe that negotiations on the fiscal chapter, which include the reduction of corporate income tax, the creation of a new investment regime (RIMI) that contemplates accelerated depreciation in Income Tax and the advance return of VAT, will continue until the last moment. The Government proposes the creation of the Labor Assistance Fund, through which companies will contribute 3% of the employer contributions that must go to ANSES to cover layoffs, and there, at the request of the UCR, an agreement is sought so that it only serves to finance layoffs in SMEs. The head of La Libertad Avanza (LLA), Patricia Bullrich, announced this Tuesday that together with other dialogist blocs, a request for a special session on February 11 was submitted to debate the labor reform and stated that there is an agreement on 95% of the points with the political forces that will back this initiative.