Income Tax in 2025: How to Deduct It According to the New ARCA Scales

Starting this year, the rules for calculating and deducting income tax in Argentina changed. Under the new provisions, the scales are updated twice a year, in January and July, based on accumulated inflation over the previous six months.

The Customs Collection and Control Agency (ARCA), successor to the former AFIP , published the new values ​​that determine which amounts are exempt from tax, as well as the rates and deductions allowed for the 2025 fiscal year. This has a direct impact on the net income of thousands of Argentines, who will be able to reduce their tax burden if they properly take advantage of these new scales.

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ARCA establishes the following amounts for Income Tax deductions in June 2025 , designed to ease the tax burden and adapt to the country's new economic conditions:

• Non-taxable income: $3,916,268.37

• Deduction for spouse or cohabiting union: $3,688,339.32

• Child under 18 years of age: $1,860,042.98 (in the case of disabled children, it is doubled without an age limit)

• Special deduction for employees: $18,798,088.20

• Special deduction for self-employed workers: $13,706,939.31

• Special deduction for entrepreneurs: $15,665,073.50

• Domestic service: $3,916,268.37

• Life insurance premiums: $573,817

• Mortgage interest: $20,000

• Housing rent: $3,916,268.37

• School expenses: $1,566,407

• Renting a home tenant/owner: no limit

• Medical plan and medical fees: unlimited

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According to ARCA, "individuals subject to Income Tax can report on Form F572Web, through the former AFIP's SIRADIG Trabajador service, all deductions that allow them to minimize the burden of this tax for the 2025 Fiscal Period." This means that those who correctly update their personal and family information can significantly reduce the impact of the tax on their income.

The Income Tax in 2025 is also structured into progressive tax brackets ranging from 5% to 35% , applied according to each taxpayer's accumulated income. For employees without dependents, the threshold for paying this tax is $2,280,647 monthly gross, while for those who deduct a spouse and two minor children, the threshold rises to $3,024,029.

This structure seeks to make the system more equitable, allowing those with greater family responsibilities to access larger deductions . Furthermore, the new tables also consider special cases such as self-employed individuals and entrepreneurs, who can apply broader deductions to compensate for their unstable income.

Finally, it's important to remember that these values ​​will be reviewed again in July 2025, at which point they will be adjusted based on accumulated inflation, seeking to more accurately reflect the country's economic reality and protect workers' purchasing power.