Inflation Adjustment. Law No. 27,468 Modification On Income Tax

Author:Canosa Abogados
Profession:Canosa Abogados

On December 3th of 2018, it was promulgated the law n ° 27,468 (the "Law"), enacted on November 15th, 2018. The Law introduces amendments to the Income Tax Law for the fiscal years to be initiated on the 1st of January of 2018.

First, the Law amends the index that is taken as reference to adjust for inflation, in this sense the term "wholesale price index, general level" is replaced by the term "consumer price index general level (CPI)"

Another amendment that the Law introduces is related to the percentage from which the adjustment for inflation can be made on the income tax for the fiscal years after January 1st of 2018.

The Law establishes that the adjustment for tax inflation will be applicable, based on the general consumer price index, if the inflation calculated from the beginning until the end of each of the first three fiscal years exceeds:

  1. for the first fiscal year 55%, B) for the second 30% and C) for the third 15% In this case, the adjustment for positive or negative inflation corresponding to the first, second and third years of application shall be...

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