On 19 October 2026, the Argentine Federal Administration of Public Revenue (AFIP) published Resolution General 5600/2026 detailing the regulatory framework for the new Gross Income Tax (Ingresos Brutos) credit available to employers who hire registered workers under the “Employment Promotion Law” (Law 27,742). The credit allows a deduction of up to 50% of the employer’s social security contributions paid for new hires, applicable against provincial Gross Income Tax liabilities. The benefit targets small and medium enterprises (SMEs) and companies in promoted regions, but excludes public sector entities, firms with tax debts, and those sanctioned for labor violations in the past 24 months.
Key Takeaways
- Targeted Eligibility: Only SMEs certified under the MiPyME registry and companies operating in designated promoted areas (e.g., Patagonia, Northwest) qualify; large corporations and non-certified entities are expressly excluded.
- Anti-Abuse Safeguards: The credit is clawed back if the hired worker is dismissed without cause within 12 months, and employers must maintain headcount levels above a baseline to prevent substitution effects.
- Provincial Adoption Required: Since Gross Income Tax is a provincial levy, each jurisdiction must adhere via local legislation; as of publication, only 8 of 24 provinces have enacted enabling regulations, creating a patchwork application.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement