Congress approves second ‘Fiscal Innocence’ law to attract stashed dollars
The changes add tax benefits and ease rules in an attempt to get Argentines to bring their savings into the formal economy La entrada Congress approves second ‘Fiscal Innocence’ law to attract stashed dollars se publicó primero en Buenos Aires Herald .
The Senate recently approved alterations to the government's Fiscal Innocence law, designed to entice Argentines to bring their hidden dollars into the formal economy with reduced oversight. The revised version, known as Fiscal Innocence II, features enhanced tax benefits and fewer constraints compared to the original law enacted last December.
Last year's legislation raised the threshold for tax evasion and applied the principle of innocence, allowing citizens to deposit undeclared savings in banks without having to explain their origins. However, enrollment in the system was lower than anticipated, prompting President Javier Milei and Economy Minister Luis Caputo to propose changes to make the program more appealing.
The Lower House had already passed the modifications in late August, and the Senate granted final approval on Thursday night, with a vote of 44 in favor to 23 against. The bill received support from political groups La Libertad Avanza, PRO, and UCR, as well as smaller provincial blocs.
The updated law, named Fiscal Innocence II, relaxes requirements regarding significant discrepancies found during registration and increases income limits for those seeking entry into the Simplified Income Tax Regime, established in December. Presidential spokesperson Adrián Ravier remarked that the bill preserves the essence of the current regime while incorporating technical amendments to bolster legal certainty and bolster Argentine confidence in investing their savings.
The government anticipates that around US$170 billion remains outside the formal economy. In addition to the Fiscal Innocence II law, the Senate also approved a reform of the biofuels law, which will benefit provinces producing sugarcane, corn, and soybeans. This bill raises the mandatory blending levels for bioethanol and biodiesel and establishes a transition period for non-integrated companies. The revised Fiscal Innocence law now requires approval by the government to become enforceable.
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