An Argentine law that applies as from 2 January 2026 can shorten the statute of limitations for taxes from five years to three years for qualifying registered taxpayers. The revised rules, contained in the federal tax procedure law, apply to all federal taxes, including VAT, and to all taxpayers, including subsidiaries and branches of multinational groups. A second law, passed by the legislature in September 2026 and awaiting promulgation and publication in the official gazette, would retain the three-year framework but revise the criteria for determining when a discrepancy is “significant,” potentially causing more returns to remain subject to the five-year period.
As a general rule, the federal tax authorities have five years to assess and collect taxes and impose penalties. Under the amended federal tax procedure law, this period is reduced to three years when a registered taxpayer files its return on time and settles the tax due. However, the shorter period does not apply if the tax authorities challenge the return because of a “significant discrepancy” between the amounts reported and information in their systems or provided by third parties. The implementing decree clarifies that a liability is considered settled if the taxpayer either pays it in full or enters into an instalment plan by the payment deadline.
The policy change links the statute of limitations to taxpayer conduct rather than applying a single period in all cases. A taxpayer that files and pays on time — and whose return is consistent with information already held by the tax authorities — may achieve certainty after three years. The five-year period continues to apply in all other cases, such as where tax credits were improperly credited, refunded or transferred, including VAT refunds for exports. The 10-year statute of limitations period for unregistered taxpayers remains unchanged.
The new regime introduced in January depends on the statutory meaning of a “significant discrepancy.” Under the measure in that law, a discrepancy is significant if any of the following conditions applies:
Once promulgated, the September law would replace this rule, with the 15% threshold measured against the tax assessed rather than against tax balances. The law would also treat the improper calculation of direct payments — including tax withheld, tax collected at source, advance payments and payments on account — as a separate ground for a significant discrepancy. Consequently, even a relatively small adjustment could trigger the five-year period if it exceeds 15% of the tax reported.
VAT is particularly affected by these revisions to the statute of limitations, making the changes especially important for indirect tax purposes. In Argentina, VAT returns are filed monthly, and the implementing regulations indicate that discrepancies are measured separately for each monthly period. An input VAT adjustment that would be immaterial compared with a company’s annual corporate income tax liability may still exceed 15% of the VAT assessed for a particular month, especially when the monthly liability is low or the business is highly seasonal.
For a multinational group with several Argentine entities and many monthly VAT periods still open to review, the protection offered by the three-year period may therefore be less certain than for annual taxes. Each VAT period must be assessed separately.
The rule on false or fraudulent invoices creates an additional risk because no monetary threshold applies. For multinational groups with extensive local supply chains, the quality of documentation supporting input VAT credits will affect whether a credit is allowable and how long the related tax exposure remains open.
The shorter statute of limitations period is part of the broader framework established by the January law. Instead of relying solely on penalties to encourage voluntary compliance, the law offers taxpayers a practical benefit: a return that is filed and paid on time and not affected by a significant discrepancy generally becomes final when the three-year period expires. The same policy approach underlies the simplified regime’s presumption that returns are accurate and its higher thresholds for criminal tax offences. In each case, taxpayers that timely comply and whose filings are consistent with information already available to the tax authorities receive greater legal certainty. This is particularly valuable in an economy with high levels of informality and a history of lengthy tax audits.
For multinational groups operating in Argentina, the practical implications are twofold:
Alberto Mastandrea
BDO in Argentina
Three-Year Statute of Limitations for Compliant Taxpayers
As a general rule, the federal tax authorities have five years to assess and collect taxes and impose penalties. Under the amended federal tax procedure law, this period is reduced to three years when a registered taxpayer files its return on time and settles the tax due. However, the shorter period does not apply if the tax authorities challenge the return because of a “significant discrepancy” between the amounts reported and information in their systems or provided by third parties. The implementing decree clarifies that a liability is considered settled if the taxpayer either pays it in full or enters into an instalment plan by the payment deadline.The policy change links the statute of limitations to taxpayer conduct rather than applying a single period in all cases. A taxpayer that files and pays on time — and whose return is consistent with information already held by the tax authorities — may achieve certainty after three years. The five-year period continues to apply in all other cases, such as where tax credits were improperly credited, refunded or transferred, including VAT refunds for exports. The 10-year statute of limitations period for unregistered taxpayers remains unchanged.
What Constitutes a Significant Discrepancy?
The new regime introduced in January depends on the statutory meaning of a “significant discrepancy.” Under the measure in that law, a discrepancy is significant if any of the following conditions applies:
- The tax authorities’ adjustment increases the tax due, or reduces tax losses or credit balances, by at least 15% of the amount reported;
- The difference exceeds ARS 100 million for a particular tax and fiscal year; or
- The adjustment arises from the use of false or fraudulent invoices, regardless of the amount involved.
Once promulgated, the September law would replace this rule, with the 15% threshold measured against the tax assessed rather than against tax balances. The law would also treat the improper calculation of direct payments — including tax withheld, tax collected at source, advance payments and payments on account — as a separate ground for a significant discrepancy. Consequently, even a relatively small adjustment could trigger the five-year period if it exceeds 15% of the tax reported.
Why VAT Is Particularly Exposed
VAT is particularly affected by these revisions to the statute of limitations, making the changes especially important for indirect tax purposes. In Argentina, VAT returns are filed monthly, and the implementing regulations indicate that discrepancies are measured separately for each monthly period. An input VAT adjustment that would be immaterial compared with a company’s annual corporate income tax liability may still exceed 15% of the VAT assessed for a particular month, especially when the monthly liability is low or the business is highly seasonal.For a multinational group with several Argentine entities and many monthly VAT periods still open to review, the protection offered by the three-year period may therefore be less certain than for annual taxes. Each VAT period must be assessed separately.
The rule on false or fraudulent invoices creates an additional risk because no monetary threshold applies. For multinational groups with extensive local supply chains, the quality of documentation supporting input VAT credits will affect whether a credit is allowable and how long the related tax exposure remains open.
Key Takeaways
The shorter statute of limitations period is part of the broader framework established by the January law. Instead of relying solely on penalties to encourage voluntary compliance, the law offers taxpayers a practical benefit: a return that is filed and paid on time and not affected by a significant discrepancy generally becomes final when the three-year period expires. The same policy approach underlies the simplified regime’s presumption that returns are accurate and its higher thresholds for criminal tax offences. In each case, taxpayers that timely comply and whose filings are consistent with information already available to the tax authorities receive greater legal certainty. This is particularly valuable in an economy with high levels of informality and a history of lengthy tax audits.For multinational groups operating in Argentina, the practical implications are twofold:
- The reform can materially shorten the period during which the tax authorities may review returns for taxpayers that file and pay on time, an important benefit in a market where tax exposures have historically remained open for many years; and
- The shorter period is not automatic. Businesses should review compliance separately for each tax period, reconcile returns with information available to Argentina’s tax authorities and strengthen the documentation supporting input VAT credits for every month.
Alberto Mastandrea
BDO in Argentina