Draft Bill. "Principle of Fiscal Innocence"
The National Executive Branch, through Decree 865/2025 of 9 December 2025, convened extraordinary sessions of the National Congress to analyse, among other things, the draft bill entitled "Principle of Fiscal Innocence", which proposes significant amendments to various regulatory bodies of the Argentine tax system, including the Criminal Tax Regime, the Tax Procedure Act, the Civil and Commercial Code of the Nation, and the creation of a Simplified Affidavit Regime.
The main points of the bill are detailed below.
1. Amendments to the Criminal Tax Regime
The bill proposes a substantial update of the minimum amounts for the objective condition of punishability of the various offences defined in the System as follows:
Offence | Current Amount | Proposed Amount |
Simple evasion | $1,500,000.00 | $100,000,000.00 |
Aggravated evasion | $ 15,000,000.00 | $ 1,000,000,000.00 |
Fraudulent use of tax benefits | $ 2,000,000.00 | $ 200,000,000.00 |
Use of false documents | $ 1,500,000.00 | $100,000,000.00 |
Misappropriation of taxes | $100,000.00 | $ 10,000,000.00 |
Simple evasion Social Security Resources | $ 200,000.00 | $ 7,000,000.00 |
Aggravated evasion Social Security Resources | $1,000,000.00 | $ 35,000,000.00 |
Fraudulent use of intermediaries and benefits | $ 400,000.00 | $ 14,000,000.00 |
Misappropriation of Social Security resources | $ 100,000.00 | $ 3,500,000.00 |
Fraudulent simulation of cancellation of obligations per year | $ 500,000.00 | $ 20,000,000.00 |
Fraudulent simulation of cancellation of obligations per month | $ 100,000.00 | $ 3,500,000.00 |
Likewise, the regime for the extinction of criminal proceedings is reformulated, establishing that:
- The tax administration shall not file criminal charges if the evaded obligations, together with interest, are paid in full and unconditionally before the complaint is filed. This limitation applies only once per individual or legal entity subject to the obligation.
- If criminal proceedings have been initiated, they may be terminated if the amounts owed, interest and an additional amount equivalent to 50% are paid within 30 working days of the procedural act by which the criminal charge is reliably notified.
- It defines the termination of criminal proceedings provided for in Article 59, paragraph 6) of the Criminal Code as inapplicable to the Regime, settling a long-standing debate.
- It provides that criminal proceedings relating to tax and social security resources shall not continue when the powers to determine them expire.
Express provisions are incorporated that establish cases in which the tax collection agency shall not file a criminal complaint, including:
- When it is clear that no punishable conduct has occurred, either due to the circumstances of the event or because of differences in interpretative or technical-accounting criteria.
- When the adjustments determined arise exclusively from the application of legal presumptions, without other evidence.
- When the taxpayer has reasonably expressed the interpretative or technical-accounting criteria used, through a formal presentation prior to or simultaneous with the sworn statement.
- When the original or amended tax returns are filed before notification of the start of an audit in respect of the tax and tax period involved.
In certain cases, the decision not to file a complaint must be made by means of a well-founded act and with the intervention of the corresponding legal service.
2. Amendments to the Tax Procedure Law (Law 11,683)
The bill introduces multiple procedural changes, including:
- Updating of the amounts of formal and material fines provided for in the Tax Procedure Law:
Offence | Current Amount | Bill Amount |
Failure to file a sworn statement PH | $ 200.00 | $ 220,000.00 |
Failure to submit PJ affidavit | $ 400.00 | $ 440,000 |
Failure to submit PH Information Registration affidavit | $ 5,000.00 | $ 5,000,000.00 |
Failure to submit PJ Information Registration affidavit | $ 10,000.00 | $ 10,000,000.00 |
Failure to submit informative sworn statement on customs operations between independent parties PH | $ 1,500.00 | $ 1,500,000.00 |
Failure to submit informative DDJJ on customs operations between independent parties PJ | $ 9,000.00 | $ 10,000,000.00 |
Failure to submit informative DDJJ on transactions with foreign residents PH | $ 10,000.00 | $ 11,000,000.00 |
Failure to submit informative DDJJ on transactions with foreign residents PJ | $ 20,000.00 | $ 22,000,000.00 |
Failure to comply with minimum legal formal obligations | $ 150.00 | $ 150,000.00 |
Failure to comply with maximum legal formal duties | $ 2,500.00 | $ 2,500,000.00 |
Resistance to inspection, failure to declare tax domicile and other formal duties | $ 45,000.00 | $ 35,000,000.00 |
Failure to comply with requirements to submit minimum legal tax returns | $ 500.00 | $ 500,000.00 |
Failure to comply with requirements to submit the maximum legal DDJJ | $ 45,000.00 | $ 35,000,000.00 |
Non-compliance by multinationals (second article without number added to article 39) | 7,500% increase in minimums and maximums | |
Minimum value of goods for closures | $ 10.00 | $ 20,000.00 |
Fine for employing workers without registering the legal minimum | $ 3,000.00 | $ 100,000 |
Fine for employing workers without registering the legal maximum | $ 200,000.00 | $ 7,500,000.00 |
Reformulation of the statute of limitations, establishing:
- A general period of five (5) years for actions by the Treasury.
- A reduced period of three (3) years for registered taxpayers who have filed their tax returns on time and regularised the resulting balance, provided that there is no significant discrepancy between the information declared and that available in their systems.
For the purposes of this regime, the bill defines what is meant by "significant discrepancy," considering objective parameters related to percentage differences or absolute amounts.
The 120-day suspension of the statute of limitations for the Treasury applicable from the date of notification of the hearing or preliminary investigation would be repealed when the periods to be determined are close to expiring and the notification is made within 180 days prior to the expiry date.
3. Amendments to the Civil and Commercial Code and social security regulations
The bill proposes amendments to the Civil and Commercial Code of the Nation to establish that, in matters of provincial, Autonomous City of Buenos Aires and municipal taxes, the statute of limitations shall be governed by the provisions of the National Tax Procedure Law. This reform would settle a long-standing and ongoing debate regarding the power of the provinces to set limitation periods in tax matters.
Similar provisions are also incorporated in relation to:
- Social welfare.
- The national health system.
- Social security contributions.
In these cases, the statute of limitations would also be reduced from 10 to 5 years when the taxpayer has fulfilled their obligations on time and there are no significant discrepancies.
4. Simplified Affidavit Regime
The bill creates a Simplified Income Tax Return System, applicable to individuals and undivided estates resident in the country who meet certain income, asset and administrative categorisation requirements.
Key aspects of the regime include:
- The possibility of accepting a sworn statement proposed by the tax collection agency.
- The discharging effect of payment, both from a formal and material point of view, with respect to the tax period involved.
- The incorporation of a presumption of accuracy of income tax and VAT sworn statements corresponding to non-prescribed periods, with the exceptions expressly provided for in the bill.
The regime provides for cases of exclusion and allows for the extension of audits when significant discrepancies or certain irregularities are detected.
5. Final provisions
The bill invites the provinces and the Autonomous City of Buenos Aires to adopt, within the scope of their powers, simplified audit regimes aligned with the provisions proposed at the national level.
Article written by Andrés Charca, partner at ECIJA Argentina.
