The Unconstitutionality of Income Tax on Pensions

The Supreme Court has issued an emblematic decision declaring the unconstitutionality of income tax on pensions in re “García, María Isabel v AFIP [Tax Authority] on declaratory action of unconstitutionality” (Supreme Court of Justice of Argentina, March 25, 2019).

As a matter of fact, the Federal Court of Appeals in Paraná confirmed the Lower Court decision upholding the complaint and therefore declaring the unconstitutionality of subsection c) of Section 79 of the Income Tax Act No. 20628.

Published in El Cronista on April 03, 2019
Consequently, the Court ordered the Defendant to 1) reimburse the Plaintiff for any income tax withholdings from the moment the complaint was filed until actual payment; and 2) not to apply income tax on pensions in the future; and in turn, extended the scope of this decision until Congress resolves accordingly, and in an indirect message, according to final ruling. Seguir leyendo The Unconstitutionality of Income Tax on Pensions