ARCA Targets Companies Failing to Withhold Income Tax from Employees
The Revenue and Customs Control Agency (ARCA) is focusing its attention on companies that fail to withhold income tax from their employees’ salaries.
ARCA’s Analysis and Findings
In a letter, the arca-sancionara-a-empresas-que-no-retengan-ganancias-a-empleados/” title=”"ARCA sancionará a empresas que no retengan Ganancias a empleados"”>national tax authority stated that after conducting an analysis focused on salaries and wages of employees, it identified employment relationships that, due to the amounts of remuneration, should be subject to the income tax withholding regime for the fiscal period of 2025.
ARCA’s Communication to Companies
ARCA has informed the companies that they have until April 30 of the current year to carry out the annual settlement and submission of Form F.1359.
ARCA Income 2026: New Thresholds, Scales, and Deductions
ARCA has also announced that the sections of the scales of Article 94 and the deductions of Article 30 of the income tax, applicable to remunerations received from January 1 to June 30, 2026, have been updated.
Article 94 Scale of the Income Tax Law for the January to June 2026 Period
Deductions of Article 30 of the Income Tax Law for the January to June 2026 Period
ARCA Published the Scales for Companies’ Income
ARCA has also published on its website the scales of the income tax law for determining the tax corresponding to the fiscal years starting from January 1, 2026.
Gradual Reform in the Application of the Proportional Rate
Errepar points out that starting from the fiscal years initiated from January 1, 2018, inclusive, there was a gradual reform in the application of the proportional rate:
– First, second, and third fiscal year: in this case, the 30% rate was applicable to the corporate income attributed by the accrued and the 7% rate for the dividend or distribution of profits attributed by the perceived.
– Fourth fiscal year and subsequent: the scale began to apply with rates of 25%, 30%, and 35%, with adjustable monetary parameters for corporate profit and 7% for the dividend or distribution of profits.
Update of the 2026 Scale
Regarding the update of the 2026 scale, the Consumer Price Index (CPI) of October 2025 over the CPI of October 2024 is considered, resulting in the update coefficient.
The scale is updated taking into account the annual variation of the Consumer Price Index (CPI) provided by the National Institute of Statistics and Censuses of the Argentine Republic (INDEC), corresponding to October of the year prior to the adjustment, compared to the same month of the previous year.
In this regard, the amounts determined by applying the described mechanism will be applicable for fiscal years that start after each update.
