Sanction regime for false declaration of immigration status and update of payment modalities (Provision 34/2026)

The National Migration Directorate (DNM) has intensified its control over "denationalization of stay". This legal concept applies when a foreigner enters the territory as a tourist (art. 24 para. a) but engages in activities typical of a lucrative, technical or professional activity.

The sanctioning authority presumes the existence of an infringement simply by detecting that the foreigner is undertaking tasks, regardless of the shortness of their stay or the existence of a formal employment relationship. Among the activities under scrutiny are participation in audits, advising or technical advising "on-site", as well as attendance at board meetings or operational training sessions.

According to current regulations, the amount of penalties for infringing articles 55 and 59 of Law No. 25.871 is set at 50 Minimum, Vital and Mobile Salaries (SMVM) for each offender. At the values of January 2026, this represents an estimated financial contingency of 17,000,000 ARS per unqualified worker, without prejudice to legal costs and reputational risk for the company.

To regularize these penalties, Provision 34/2026 has established stricter guidelines aimed at preventing the amounts owed from becoming obsolete:

• Payment conditions: Payment plans will be granted for a maximum of twelve (12) monthly installments, with a minimum amount of two (2) SMVM per installment, applying a financing interest rate of 2.75% per month on the balance and a late payment interest rate of 3.50% per month for each day of delay.

Article written by the Tax Department of ECIJA Argentina.