Answer ... Decree 814/2001 establishes the possibility of computing part of the employer’s contributions actually paid as a VAT credit, as defined in Annex I to the decree. The reform repealed Annex I in force and implemented another transition period. The modification is effective from 1 February 2018 to 31 December 2021.
Employers may continue to compute as a VAT credit part of the employer contributions up to 31 December 2021 in the same way as they have done previously, according to the new Annex I.
However, the new annex establishes a regressive percentage up to 0.00% within five years for all jurisdictions. For 2018 the same percentages apply as under the previous annex. Over the following years, the percentage for computing the tax credit will be reduced by 25% per year (ie, 75% in 2019, 50% in 2020, 25% in 2021 and 0% in 2022) (Law 27430: modifications to the system of employer contributions and their computation as tax credit VAT).
This benefit has never been allowed for companies based in the City of Buenos Aires and a large part of Buenos Aires Province (Almirante Brown, Avellaneda, Berazategui, Esteban Echeverría, Florencio Varela, General San Martín, General Sarmiento, La Matanza, Lomas de Zamora, Merlo, Moreno, Morón, Quilmes, San Fernando, San Isidro, Tigre, Tres de Febrero, Vicente López, La Plata, Berisso, Ensenada, Pilar, General Rodríguez, Escobar, Marcos Paz, San Vicente y Cañuelas).