Argentina regulates Fiscal Innocence II Law

The Argentine government has implemented the regulations for the Fiscal Innocence II Law (Law No. 27,799), aiming to transition from a punitive tax approach to a paradigm of presumed accuracy. The regulation introduces significant changes to tax evasion thresholds: simple evasion is now set at $100 million, while aggravated evasion reaches $1,000 million. Starting in 2027, these amounts will be adjusted annually by UVA. Additionally, prescription periods for taxpayers with good fiscal behavior will be reduced from five to three years for national taxes, and from ten to five years for social security resources.

The new regulations also expand the Simplified Earnings Regime (RSG) by removing previous income and asset restrictions, allowing a broader range of taxpayers to join.

However, legal and accounting experts have raised concerns regarding the intersection of this law with anti-money laundering regulations. While the law seeks to encourage the formalization of undeclared cash, professionals such as lawyers and accountants remain obligated to perform due diligence and report suspicious activities to the Financial Information Unit (UIF). This creates a potential conflict for professionals who must balance encouraging regime adherence with their legal duty to report transactions that may involve illicit funds.