Summary of the Current Regulatory Framework and Update on Penalties for Non-Compliance (Tax Innocence Law)

The recent enactment of Law 27,799, also known as the Tax Innocence Law, which took effect in January 2026 and was formally regulated in February of that same year, has led to a substantial restructuring of the tax penalty system in Argentina.

One of the law’s core tenets is the comprehensive update of the penalty amounts provided for in the Tax Procedure Law, with significant increases in fines related to formal infringements, omissions, non-compliance with reporting regimes, and obligations related to international transactions and Transfer Pricing (“TP”).

As the TP filing calendar for fiscal years ending December 31, 2025, commences, the following is a synopsis of the prevailing regulatory framework and the major updates to the penalty regime for companies with international operations and/or those that are part of Multinational Enterprise Groups (MNEs).

1 - References in US dollars (USD) are based on the Banco Nación Argentina selling exchange rate for February 2026 (approx. AR$1405-1415/USD1).

1 - References in US dollars (USD) are based on the Banco Nación Argentina selling exchange rate for February 2026 (approx. AR$1405-1415/USD1).

Mechanism for Updating Penalty Amounts 

The law ensures that the amounts retain their deterrent power in the face of inflation: As of January 1, 2027, the amounts will be adjusted on an annual basis, considering the annual variation of the Purchasing Power Unit (Unidad de Valor Adquisitivo - UVA), operated between January and December of the calendar year immediately preceding the adjustment. 

The updated amounts will be applied to the calendar year beginning after each update. The Tax Collection and Customs Control Agency (Agencia de Recaudación y Control Aduanero - ARCA) is responsible for publishing the updated amounts on an annual basis, with the new figures taking effect at the beginning of each year. 

Concluding remarks 

In this new context, and given the relevance of updating the amounts of these fines, it is essential to reinforce preventive tax management. This management should have a special focus on the quality of the information submitted, timely compliance with reporting requirements, and adequate documentation of transactions. Furthermore, additional changes may be anticipated in the future as a result of the comprehensive reform project of the Transfer Pricing regime presented by ARCA for public consultation towards the end of 2025. At RSM Argentina, we are available to evaluate the scope of this new regulation and assist in its proper compliance.