Argentina: Raises Tax Fines and Enhances Enforcement

In brief

Law No. 27,799/2025 (The Law), published in the Official Bulletin on 2 January 2026, introduces significant reforms to Argentina's Criminal Tax Regime and Tax Procedure Law (Law No. 11,683/1998). The Law reforms the Criminal Tax Regime, significantly increases fines and penalties to reflect current economic conditions, modifies statutes of limitations and establishes an optional Simplified Sworn Statement Regime. These changes modernize the country's tax enforcement framework and strengthen the supervisory powers of the Customs Collection and Control Agency (ARCA).

In more detail

1. Modification of the Criminal Tax Regime

The Law updates the minimum amounts required for the configuration of tax and social security crimes.

For example, the minimum amount for the crime of simple evasion is increased from ARS 1,500,000 (approximately, USD 1,000) to ARS 100,000,000 (approximately, USD 68,000), and the threshold for the configuration of the crime of aggravated evasion is increased from ARS 15,000,000 (approximately, USD 10,000) to ARS 1,000,000,000 (approximately, USD 678,000). If the amount of the evaded tax is under ARS 100 million (approximately, USD 68,000), the Criminal Tax Regime will not apply.

It also establishes that the ARCA will not file a criminal complaint in certain cases (mainly cases of evasion and/or undue use of tax benefits) if the taxpayer cancels in full and unconditionally the evaded obligations and the interest thereon before the filing of the complaint. This benefit may be used only once per person or legal entity.

One of the main novelties of the Law is that it establishes the extinction of the criminal action for the (i) total payment of the amount evaded or unduly taken advantage of plus the corresponding interest, and (ii) additional payment of 50% of the debt, within 30 business days of the reliable notification of the criminal charge.

In addition, the Law introduces relevant novelties in the Criminal Tax Regime, since to the cases in which the ARCA will not file a criminal charge due to (i) differences of interpretative or technical-accounting criteria duly founded and justified by the taxpayer, according to the amounts at stake, and/or (ii) legal presumptions without other elements of proof.

The following two cases are added: (a) when the taxpayer had externalized through a formal presentation the interpretative or technical-accounting criterion used to determine the tax liability, before or at the same time of the filing of the affidavit; and (b) the taxpayer files original or rectifying affidavits before the notification of the beginning of the audit.

The Law also provides for an automatic update, on an annual basis, as from 1 January 2027, on the value of the purchasing value unit ("UVA"), to be considered at the time of the commission of the respective tax offenses.

2. Modification of the Tax Procedure Law

As mentioned above, in line with the changes in the Criminal Tax Regime, the Law also amends Law No. 11,683/1998. The values of fines and penalties to be applied by ARCA are updated and significantly increased, adapting them to the current economic parameters.

Below is a table summarizing the updated monetary amounts for each type of infraction:

In addition, on 8 February 2026, the ARCA issued the General Instruction 2/2026 that regulates a special procedure applicable to the fines regulated under Article 38 of Law No. 11,683/1998.

Article 38 establishes that a fine may be imposed, without the need for a prior requirement, on taxpayers who fail to file determinative tax returns within the general deadlines established by the ARCA.

Article 38 also allows the ARCA to initiate the penalty procedure through a notification generated by its data processing system, provided that such notification meets the formal requirements set out in Article 71 of the same law. The new instruction builds upon this legal framework by operationalizing how and when these automated notifications are issued and how the system based process unfolds.

Under this scheme, once the statutory due date for filing a determinative return has passed, the Tax Current Account System ("Sistema de Cuentas Tributarias" or "SCT") automatically issues a "Reminder for Lack of Filing" to the taxpayer's electronic tax domicile. This reminder is sent to all taxpayers registered for the applicable tax, except those classified in Segment 1.1 due to their fiscal significance.

Following the reminder, the Instruction establishes a segment based waiting period that determines the moment at which the fine is formally registered. During this period the system continuously monitors whether the taxpayer files the omitted return and, where applicable, pays the corresponding penalty. Once the relevant waiting period has elapsed, the fine is automatically registered.

After the registration stage, the ARCA performs systemic checks to identify taxpayers who complied with both the filing and payment obligations. If the non compliance persists, the ARCA will initiate the corresponding intimations through the Tax Current Account System ("Sistema de Cuentas Tributarias" or "SCT") and through the Information and Collection Management System (SINGER), thereby commencing the formal enforcement phase.

3. Simplified Affidavit Regime

The Law creates a special and optional regime for resident individuals and undivided estates that meet certain income and net worth requirements (total income of up to ARS 1,000 million -approximately, USD 678,000- and net worth of up to ARS 10,000 million – approximately, USD 6.78 million- in the two preceding tax years, and not being considered "large national taxpayers").

Those who adhere may accept a simplified affidavit proposed by the ARCA, with releasing effect with respect to the tax and period involved, provided that the payment is made on time.

The accuracy of the tax returns filed under this regime is presumed, both for Income Tax and VAT, with respect to non-prescribed periods, unless a "significant discrepancy" is detected between the information declared and the information available in the agency's systems or provided by third parties.

Only in case of "significant discrepancy" (e.g., differences equal to or greater than 15% with respect to what was declared, differences exceeding the criminal tax threshold of ARS100,000,000 of evaded tax (approximately, USD 68,000), or use of apocryphal documentation), the ARCA may deploy verification and control powers over the non-prescribed periods. However, the Law establishes clear limits: (i) the retroactive audit may not be extended with respect to the periods in which the taxpayer has validly adhered to the simplified regime and complied with all the requirements, even if in subsequent years it is no longer included in the regime and (ii) it may not be extended with respect to the periods covered by the Asset Regularization Regime (Law No. 27,743), provided that the conditions of that law are met.

If the presumption of accuracy mentioned in the previous paragraph is applicable, the taxpayers are released from any civil action for tax, customs and administrative offenses that may be applicable.

The payment in due time of the simplified tax return has a releasing effect, unless later it is detected omission of income, improper deductions or use of apocryphal documentation. If the taxpayer did not meet the requirements to adhere, it will be excluded from the regime and subject to full audit.

In line with the previous provisions, as from 1 January 2027, the amounts provided for in the Simplified Sworn Statement Regime will be updated annually according to the variation of the purchasing value unit ("UVA") as mentioned in point 1 above to which we refer.

Finally, the provinces and the Autonomous City of Buenos Aires are invited to adopt, within the scope of their respective competences, simplified control regimes, in line with the above mentioned provisions.

4. Modification of statute of limitations

The Law establishes changes in the statute of limitations set forth in Law No. 11,683. The general term of five years is maintained for registered taxpayers, but as a novelty, a reduction to three years is introduced when the taxpayer has filed the tax return in due time and regularized the balance, provided that no "significant discrepancies" are detected by ARCA. It expressly defines what is meant by "significant discrepancy", including: (i) differences equal to or greater than 15% with respect to the declared amount, (ii) differences exceeding the tax penalty threshold of ARS 100,000,000 of evaded tax (approximately USD 68,000), or (iii) use of apocryphal documentation. For non-registered taxpayers, the statute of limitations remains at ten years. Also, the rule that allowed the suspension for 120 days of the statute of limitations of the actions and powers of the Tax Authorities when, in the 180 days prior to the statute of limitations, the hearing of the ex officio assessment procedure or the investigation of the summary proceeding was notified is expressly repealed.

The Law amends Section 2560 of the Civil and Commercial Code to establish that the statute of limitations applicable to provincial, Autonomous City of Buenos Aires and municipal taxes must coincide with those provided for in Law No. 11,683 (or its future substitute), eliminating the possibility for each local jurisdiction to establish different statute of limitations. This reform is in line with the doctrine consolidated by the Supreme Court in the "Filcrosa" decision, in which it was ruled that the statute of limitations is not an autonomous institute of local law, and that the provinces and municipalities cannot regulate terms contrary to those provided by the national legislator.

Likewise, the statute of limitations established in Laws Nos. 23,660 (social security), 23,661 (health insurance) and 14.236 (social security) are reduced from 10 to 5 years when the taxpayer has filed the tax return in due time -or externalized its obligation through liquidations or other instruments that fulfill that purpose, if applicable, and, if applicable, has regularized the resulting balance, as long as there is no "significant discrepancy" (for example, differences equal or higher than 15% with respect to the declared amount, differences that exceed the tax penal threshold of ARS 100,000,000 of evaded amount, or use of apocryphal documentation).

These changes significantly strengthen ARCA's oversight and increase exposure to penalties. Taxpayers in Argentina should closely review their filing practices, internal controls and monitoring routines to ensure accurate and timely compliance under the new procedural framework.

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Bernardo Trueba, Attorney-at-law, has contributed to this legal update.