ARGENTINA: FISCAL INNOCENCE LAW

During the final days of 2025 and throughout 2026, the Argentine Government is expected to advance a comprehensive tax reform agenda, to be implemented in several stages amid an active parliamentary schedule.

As a first step towards modernizing, simplifying, and reducing the overall burden of the Argentine Tax System, on December 27th, 2025, the Argentine Congress enacted Bill No. 14/2025, commonly referred to as the “Fiscal Innocence Law”, introduced by the National Executive Branch. The Law introduces significant amendments to the Tax Criminal Regime and the Federal Tax Procedure Law and establishes a new Simplified Income Tax Return Regime.

The bill is built around three strategic objectives:

*Reducing compliance and audit burdens for compliant taxpayers.

*Refocusing tax criminal enforcement on material and harmful conduct.

*Enhancing legal certainty through shorter and harmonized statute of limitation periods.

The reform signals a shift away from extensive, backward-looking audits toward risk-based enforcement, aligning Argentina more closely with international practices.

Key amendments include:

1. Amendments to the Tax Criminal Regime

The passing of this bill represents a significant paradigm, legal, and cultural shift in Argentina’s tax enforcement framework, redefining the relationship between the State and taxpayers.

The cornerstone of this reform is a clear and fundamental principle: taxpayers are presumed to act in good faith and considered innocent unless intent (dolus) is duly proven, in line with the Argentine constitutional guarantees and due process standards.

On the other hand, the bill significantly increases the monetary thresholds triggering tax crimes, thereby narrowing criminal exposure to cases involving material tax damage.

Further, the bill provides for:

-Criminal complaints avoided where taxes and interest are fully paid prior to prosecution (one-time benefit per taxpayer).

-Extinction of criminal action after prosecution upon payment of tax, interest, and a 50% surcharge within 30 business days.

-Criminal proceedings are barred once the tax authority’s assessment powers are time-barred.

-Explicit limitations on criminal complaints in cases involving interpretative disputes, presumptive assessments, or voluntary filings.

2.  Tax procedure and statute of limitations

-Amendments to the Federal Tax Procedure Law No. 11,683, as amended, include:

-Updated penalties and fines recalibrated to current economic conditions.

-Reduced statute of limitations:

-Standard limitation period of 5 years.

-Reduced to 3 years where tax returns are filed on time, taxes are paid, and no “significant discrepancies” are identified.

-A statutory definition of “significant discrepancy”, generally based on:

-Differences of at least 15%,

-Absolute differences exceeding criminal thresholds,

-Use of fake or invalid documentation.

The bill also harmonizes prescription rules across federal, provincial, municipal, and social security taxes, preventing subnational jurisdictions from applying extended limitation periods.

3. Simplified Income Tax Return Regime

A new simplified regime is introduced for resident individuals and undivided estates not classified as Large National Taxpayers, who comply with the following thresholds:

-(a) Total income – taxable, exempt, and/or non-taxable for income tax purposes – of up to ARS 1,000,000,000.

-(b) Total net worth, understood as the aggregate value of assets located in Argentina and abroad – taxable, exempt, and/or non-taxable for purposes of the Personal Assets/Wealth Tax – of up to ARS 10,000,000,000.

and

-(c) They are not classified as “large national taxpayers” under the criteria of the ARCA.

Once accepted and paid:

–Tax obligations are fully discharged.

–A presumption of accuracy applies to non-expired periods.

–Audit scope is limited unless significant discrepancies are identified.

Overall, the reform reflects a clear policy shift toward legal certainty, proportionality, and voluntary compliance, while maintaining robust enforcement mechanisms for cases involving material and intentional non-compliance.

https://www.hcdn.gob.ar/proyectos/detalle_tp_adjunto/index.html