In December 2017, Law No. 27,430 was enacted, so-called as “Tax Reform”. By means of such Law, several tax amendments were introduced, which included changes in the social security contributions.

Among other amendments to the social security regime, an exempted minimum amount for employers’ contributions was incorporated into Executive Order No. 814/2001, Section 4. Such amount was originally set in 12,000 ARS, and the amount would be updated according to the variations in the Consumer Price Index ("IPC", as per its Spanish acronym), as from January 2019.

Additionally, the Tax Reform established that the exempted minimum amount will be applied in stages, according to the following table:

Until December 31, 2018 Until December 31, 2019 Until December 31, 2020 Until December 31, 2021 Until December 31, 2022
20% 40% 60% 80% 100%

Accordingly, during 2018, the exempted minimum amount was set at 2,400 ARS (20% of 12,000 ARS).

Ruling No. 3/2018, enacted on December 26, 2018, by the Social Security Department, updated the exempted minimum amount to 17,509.20 ARS, effective as of January 2019.

Such amount shall be totally applicable to certain and specifically defined industries, such as Footwear, Textile and Leather. Conversely, 40% of the total exempted minimum amount, which is 7,003.68 ARS, shall be applied until December 2019 to the rest of the employers, in accordance with the preceding table.


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