Approval and Voting Breakdown
The Argentine Senate approved the expansion of the Inocencia Fiscal law on Thursday, converting it into law with 44 votes in favor and 23 against. The initiative, promoted by the government of Javier Milei, modifies the simplified sworn declaration regime for income tax and seeks to attract dollars held outside the financial system. The proposal had already passed the Chamber of Deputies on August 26 and arrived at the Senate with a committee ruling.[S1][S2][S4]
The ruling party secured support from its usual allies, including the UCR, PRO, and various provincial forces. Notably, senators José Carambia and Natalia Gadano from Santa Cruz, who had previously voted against government proposals, backed the measure. The Peronist opposition voted unanimously against, joined by Santiago del Estero senators Gerardo Zamora and Elia Esther Moreno. One report indicated 43 votes in favor, but the majority of sources confirm 44.[S1][S3]
Key Provisions of the Law
Inocencia Fiscal II expands the simplified income tax regime by eliminating the caps that previously excluded individuals with annual income exceeding 1 billion pesos or assets over 10 billion pesos in any of the last three years. The law also redefines the concept of significant discrepancy, allowing the tax authority ARCA to intervene when it detects an inconsistency representing at least 15% of the tax owed, with a minimum threshold of 5 million pesos. Additionally, the deadline to rectify a sworn declaration is extended to 15 business days from notification.[S1][S3][S4]
The legislation also exempts certain fines for taxpayers who have regularized previous adjustments in income tax or VAT and adhere to the simplified regime. Public officials are allowed to access the simplified declaration but are excluded from the benefits related to the tax amnesty. The law applies to human persons who are fiscal residents in the country.[S3]
Debate and Reactions
During the debate, Senator Bruno Olivera Lucero of La Libertad Avanza defended the initiative, arguing that it aims to stop treating taxpayers as lifelong suspects and to allow hidden dollars to be brought into the formal system without fear of persecution. He noted that approximately 400,000 people had already opted for the simplified declaration since the first Inocencia Fiscal law. Patricia Bullrich, head of the ruling bloc, rejected opposition claims that officials could benefit and described the law as an important step toward a simpler, more predictable Argentina with greater legal security.[S1][S2][S3][S4]
Opposition senators criticized the law. José Mayans, head of the Justicialist bloc, called it a blanqueo and money-laundering law tailored to officials such as former Cabinet Chief Manuel Adorni, who resigned amid an investigation for alleged illicit enrichment. He argued the law does not benefit workers or retirees. Jorge Capitanich and Fernando Salino pointed out that while the law excludes officials and politicians from the amnesty benefits, it does not extend the restriction to their relatives, and proposed including spouses, cohabitants, and first- and second-degree relatives. The ruling party refused to accept changes and the project was voted without alterations.[S1][S2][S4]
Additional Senate Approval
In the same session, the Senate approved with 44 votes in favor and 21 against the transfer of juvenile justice and criminal competencies to the Justice of the City of Buenos Aires.[S1]
