{"id":4819,"date":"2021-09-10T12:39:02","date_gmt":"2021-09-10T12:39:02","guid":{"rendered":"https:\/\/lataxnet.net\/es\/?p=4819"},"modified":"2022-01-05T17:45:02","modified_gmt":"2022-01-05T17:45:02","slug":"managing-corporate-taxation-in-latin-american-countries-2021-copy","status":"publish","type":"post","link":"https:\/\/lataxnet.net\/es\/managing-corporate-taxation-in-latin-american-countries-2021-copy\/","title":{"rendered":"Argentina: Argentine justice enables tax inflation adjustment without deferral"},"content":{"rendered":"<p><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#e2e2e2;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\"><\/style><div class=\"fusion-title title fusion-title-1 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:10px;margin-bottom:15px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\">Argentina: Argentine justice enables tax inflation adjustment without deferral<\/h3><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-2 hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#e2e2e2;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\"><\/style><div class=\"fusion-title title fusion-title-2 fusion-sep-none fusion-title-text fusion-title-size-five\" style=\"margin-top:10px;margin-bottom:15px;\"><h5 class=\"title-heading-left\" style=\"margin:0;\">The suspension of the tax inflation adjustment in Argentina has led to taxation on fictitious profits in the Income Tax. Due to the high inflation rates the country has been experiencing over the last decade, this issue has produced a large number of controversies between taxpayers and the Argentine Revenue Service (\u201cARS\u201d).<\/h5><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><style type=\"text\/css\">.fusion-fullwidth.fusion-builder-row-2 { overflow:visible; }<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-3 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#e2e2e2;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-2 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-1\"><p>In 2009, the Federal Supreme Court seemed to put an end to the controversy in the leading case \u201cCandy\u201d, where it enabled the tax inflation adjustment in cases where the suspension of said adjustment had led to confiscatory results. Later, Argentine regulations admitted the integral adjustment for income tax purposes when certain inflation thresholds were exceeded. However, Law 27,541 indicated that for tax years 2019 and 2020 the inflation adjustment effect would be allocated gradually to the income tax calculation over a six-year period. For tax years beginning on or after January 1, 2021, taxpayers would include 100% of the negative or positive inflation adjustment in the year in which the adjustment is calculated.<\/p>\n<p>In \u201cBio Bah\u00eda\u201d, the Federal Court of Bah\u00eda Blanca has recently ruled against the deferral of the tax inflation adjustment and has authorized the taxpayer to apply the adjustment on fiscal year 2019 without any deferral . The decision was taken because the taxpayer managed to prove that the deferral would cause an effective tax rate of 80.22%, generating a confiscatory result in accordance with Supreme Court precedent \u201cCandy\u201d.<\/p>\n<p>Considering the high inflation rates of Argentina (53.8% in 2019, 36.1% in 2020 and 25.3% in 2021), \u201cBio Bah\u00eda\u201d is certainly an important ruling because it is the first time that the Federal Courts rule against the deferral of the tax inflation adjustment in Corporate Income Tax.<\/p>\n<p>For more information, please visit <a href=\"http:\/\/www.rossoalba.com\">www.rossoalba.com<\/a><\/p>\n<p>[1] Federal Trial Court of Bah\u00eda Blanca No. 2, in re \u201cBio Bah\u00eda S.A. c\/ Estado Nacional s\/ Acci\u00f3n Meramente Declarativa de Inconstitucionalidad\u201d (Docket No. 6573\/2020), ruling issued on June 29, 2021.<\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":5,"featured_media":4812,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[93,86,6],"tags":[85],"_links":{"self":[{"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/posts\/4819"}],"collection":[{"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/comments?post=4819"}],"version-history":[{"count":3,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/posts\/4819\/revisions"}],"predecessor-version":[{"id":4964,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/posts\/4819\/revisions\/4964"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/media\/4812"}],"wp:attachment":[{"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/media?parent=4819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/categories?post=4819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lataxnet.net\/es\/wp-json\/wp\/v2\/tags?post=4819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}