Argentina: Tax system

Corporate Taxes

Tax Base For Resident and Foreign Companies: The permanent establishment has been defined according to OECD's model. A company is deemed resident if its centre of activity (i.e. the location of a company’s economic activity or management activity) is within the country.
The Argentinian legislator broadened its content to include also the performance of services by a non-resident provider, including services rendered by consultants, within the national territory, for a total length greater than six months within any 12-month period.

Tax Rate

Corporate tax rate
ARS 0 to ARS 14,301,209.21	25%
ARS 14,301,209.21 to ARS 143,012,092.08	ARS 3,575,302.30 + 30% on the amount that exceeds ARS 14,301,209.21
Above ARS 143,012,092.08	ARS 42,188,567.16 + 35% on the amount that exceeds ARS 143,012,092.08
Withholding tax	dividend distributions: 7% branch profit remittances: 7%

Tax Rate For Foreign Companies

Residents and non-residents are subject to the same tax treatment. Non-resident companies are only taxed on their Argentina-sourced income.
Argentine-source income (e.g. royalties, interests) received by foreign entities is subject to withholding tax in full and final settlement at source.

Capital Gains Taxation

Gains from the transfer of shares, bonds, and other securities are taxed at standard CIT rates (25% to 35%).
Non-residents face capital gains tax on the sale of Argentine equities at an effective rate of 13.5% on gross proceeds or 15% on actual capital gains if the tax cost basis is properly documented for Argentine tax purposes. Equities listed on the local stock exchange and American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) are tax-exempt under certain conditions. Additionally, capital gains for foreign beneficiaries from the sale of corporate bonds issued by public offer, notes from financial trusts, or government bonds are exempt from profits tax if specific conditions are met.

Main Allowable Deductions and Tax Credits

Expenses are deductible if incurred for obtaining and preserving taxable income, as well as for taxes paid, depreciation or amortisation, reserves, wages and donations of up to a maximum of 5% of net taxable profits. Depreciation of automobiles with an original cost exceeding ARS 20,000 is not deductible. Related expenses, such as gasoline vouchers, insurance, rentals, repairs, and maintenance, are deductible up to ARS 7,200 per automobile per year. Directrors' fees are deductible if they are approved and accessible to the director before the tax return's due date or in a subsequent payment year. The deductible amount is either 25% of the after-tax profit or ARS 12,500 per individual, whichever is higher.
R&D expenditures (for the development of intangible assets) may be deducted when they are incurred or amortised over not more than five years, the same as for start-up expenses. Bad debts can be deducted only in specific cases (like bankruptcy or prescription) and if supporting documentation is provided. Representation expenses are deductible up to 1.5% of the amount of salaries accrued during the fiscal year.
Except for corporate income tax and the tax on minimum notional income, all taxes are deductible. However, when determining net taxable income, taxpayers cannot deduct amounts paid for penalties, litigation costs, penalty interest, and other costs arising from tax obligations.
Net operating losses may be carried forward for five years, whereas loss carrybacks are not allowed. Foreign-source losses must be offset against income from similar sources.
All deductions are subject to review by the tax authorities.

Other Corporate Taxes

Sales taxes are levied at the jurisdictional level, generally at a rate of 3% to 5% of gross revenue from the sale of goods and services. Higher rates may be imposed on certain services in some provinces. Industrial activities usually are exempt or subject to lower rates (between 0 and 2%). Jurisdictions also levy a real estate tax, with rates varying according to the location and the property’s fiscal value.

A financial transactions tax of 0.6% is levied on deposits and withdrawals in current accounts; as well as a 1.2% tax on any transactions made in a bank without using a bank account. 33% of the aforementioned taxes are creditable against profits tax and minimum notional income tax and/or respective tax advances.

Stamp duty of 1% is levied on the formal execution of public and private instruments including contracts, notarial deeds and promissory notes. Special rates of 0.5%, 1.2%, 3%, and 3.6% apply in certain cases.

An annual wealth tax is levied on the shares or holding in the capital of local companies owned by individuals or undivided estates domiciled in Argentina or abroad, and/or companies and/or any other type of legal person domiciled abroad. The tax rate is 0.5% of the value of the participation. Such tax does not apply to foreign companies' branches in Argentina.

Employers contribute to the national unemployment fund, family allowances fund, and social services institute for pensioners at a unified rate of 18% (20.4% for companies who mainly render services or commerce and are above the SME's threshold); plus 6% for the social health care plan. Argentine employers are exempt to pay social security contributions for the first ARS 7,003.68 per month/employee (plus an additional allowance of ARS 10,000 for small employers with no more than 25 employees). The exempt amount is increased to ARS 17,509.20 for employers in the textile, leather goods, agricultural industries, and healthcare services sector.
Employers must also contribute to the labour risk insurance (ARS 173 per month plus a percentage of the employee's salary according to the sector of activity), as well as to a life insurance fund (ARS 37.21 per month).

Other Domestic Resources

Federal Administration of Public Revenue (AFIP)

Country Comparison For Corporate Taxation

	Argentina	Latin America & Caribbean	United States	Germany
Number of Payments of Taxes per Year	9.0	28.2	10.6	9.0
Time Taken For Administrative Formalities (Hours)	311.5	327.5	175.0	218.0
Total Share of Taxes (% of Profit)	106.3	46.8	36.6	48.8

Source: The World Bank - Doing Business, Latest data available.

Accounting Rules

Accounting System

Accounting Standards: Accounting standards are developed by a national professional body, the Argentine Federation of Professional Council in Economic Sciences (FACPCE). The Central Bank and the National Insurance Superintendency supplement the professional accounting standards with rules designed specifically for entities under their control. Certain rules of these two regulators may give rise to material departures from the accounting standards.
Currently, financial entities are moving to IFRS, in accordance with a decision of the Central Bank that requires the full application of IFRS by 2018.
Accounting Regulation Bodies: Contaduria General de la Nación (Argentine Accountant General), Argentine Accountant General
Federación Argentina de Consejos Profesionales de Ciencias Economicas (Argentine Federation of Professional Councils of Economic Sciences), Organisation responsible for accounting technical standards
Accounting Law: Law #19,550 (in Spanish), 3rd April 1972.
Difference Between National and International Standards (IAS/IFRS): Listed companies other than banks and insurance companies as well as SMEs are required to prepare their financial statements using IFRSs. Banks need to apply BCRA (Central Bank of the Argentine Republic) standards converged with IFRSs starting from 2018.

Accounting Practices

Tax Year: The tax year begins on 1 January and finishes on 31 December of the same year.
Accounting Reports: All commercial companies in Argentina have to draw up certain accounting documents yearly, including the journal, ledger and a follow up of stock evaluation.
Companies are obligated to draw up a balance sheet and a profit and loss account and to submit the documents annually for approval by auditors (from within or outside of the company).
Publication Requirements: Annual financial statements and an auditor’s opinion must be submitted.
Public companies must file interim and annual financial statements with the National Securities Commission and the Buenos Aires Stock Exchange, respectively. The quarterly and annual filings must include consolidated and separate financial statements allowing comparison with the previous year or period.

A private company files its annual financial statements with the Corporate Inspection Department (Inspección General de Justicia) of the relevant jurisdiction.

Accountancy Profession

Accountants: The 'Contador Auditor' (chartered accountant) manages the accounting and certifies it within the company.

The 'Contador Publico Independiente' (auditor) certifies the accounts of the contador auditor.
Professional Accountancy Bodies: Professional Council of Economic Sciences, Accounting Professionals
Argentine Federation of Professional Councils of Economic Sciences, Advisory Professionals
Member of the International Federation of Accountants (IFAC): The Argentine Federation of Economic Sciences Professional Councils is a member of IFAC.

Member of Other Federation of Accountants: Argentina is a member of the Association of International Accountants.
Audit Bodies: Companies must seek a statutory auditor to conduct an annual audit of the financial health of their organisation. Some examples include KPMG, Deloitte, and PriceWaterhouseCoopers.

Consumption Taxes

Nature of the Tax: Impuesto al Valor Agregado or IVA (Value Added Tax or VAT, in English)
Standard Rate: The general VAT rate stands at 21% and is charged on the net price of transactions. Certain public services such as electricity, water, and sewage disposal or telecommunications companies are subject to an increased rate of 27%.
Reduced Tax Rate: A reduced VAT rate of 10.5% applies to interest and commissions on loans made by banks; sale, preparation, manufacturing or construction and final import of certain capital assets; long-distance passenger transportation (more than 100 km); sale or import of newspapers and magazines.
Exports of goods and services are treated as zero-rated transactions, with the input VAT that can be used as a credit against output VAT or refunded following a special procedure.
Starting 1 January 2023, the VAT rates for editorial production, renting advertising space in newspapers, magazines, periodicals, and online news portals are adjusted based on the previous 12 months' VAT-exclusive sales. The rates are: (i) 2.5% for sales up to ARS 250 million, (ii) 5% for sales over ARS 250 million but not exceeding ARS 500 million, (iii) 10.5% for sales over ARS 500 million but not exceeding ARS 1,000 million, and (iv) 21% for sales over ARS 1,000 million.
Exclusion From Taxation: VAT exempt supplies include education services, rental of real estate under certain conditions, books, some staples like water and milk for specified buyers, local passenger transportation by cabs (under 100 km), international transportation, and interest on preferred shares, equity securities, bonds, and other securities issued by the federal government, provinces, and municipalities.
Method of Calculation, Declaration and Settlement: The rate of VAT is applied to the sales price. VAT registration is required for (a) corporations or other legal entities that commence taxable activities in Argentina, and (b) individuals that have annual taxable turnovers of above ARS 11.37 million for goods and ARS 7.99 million for services. For imports, VAT is computed and paid with customs duties. Persons subject to VAT must file returns monthly. VAT returns are due within 20 calendar days following the end of each tax period (month).
VAT for services rendered from abroad has to be paid by the local entity receiving the service, applying the reverse charge mechanism.
Entities must register for IIBB (Ingresos Brutos) if they provide VAT-taxable supplies in the course of doing business. No turnover threshold applies.
Other Consumption Taxes: Import duties vary between 0% and 35%. Excise duties apply to tobacco, wines, soft drinks, spirits, gasoline, lubricants, insurance premiums, automobile tyres, mobiles services, perfumes, jewellery, and precious stones. From 1 January 2023 to 31 December 2025, certain electronic products are subject to a 19% tax, excluding specified radio broadcast receivers. For products manufactured by companies benefiting from the Tierra del Fuego province incentive, the rate is 9.5%.
Export duties are imposed on goods with rates varying according to the type of goods. Furthermore, a 30% solidarity tax applies to all foreign currency purchases by Argentine individuals for investment, and by companies and individuals for foreign expenses such as travel, accommodation, and personal use digital services. From 13 October 2022, the tax also covers the acquisition of personal, cultural, and recreational services outside Argentina (or within Argentina if provided by a nonresident) and the importation of luxury goods, including high-end cars and motorcycles, jets and private planes, recreational boats, premium alcoholic beverages, watches, pearls, diamonds, other precious stones, slot machines, and cryptocurrency mining machines.
Automobile duty is imposed on car ownership for vehicles registered in each jurisdiction.

Individual Taxes

Tax Base For Residents and Non-Residents

Residents are taxed on all their national and international incomes while non-residents are only taxed on income received in Argentina.
The Argentinian law divides individuals into three categories concerning their residency status:

Residents (nationals living in the country; nationals working abroad for up to 13 months or when they obtain a permanent residence for migration purposes in a foreign country; foreigners assigned to work in Argentina for more than five years; foreigners residing in Argentina not for working purposes, starting from the 13th month)
Non-residents (foreigners assigned to work in Argentina for less than five years)
Foreign beneficiaries (foreigners working temporarily in Argentina for less than six months in a calendar year; Argentine nationals working abroad once they have lost the tax residence status; and foreigners residing abroad).

Tax Rate

Personal Income Tax	Rate
ARS 0 - 419,253.95	5%
ARS 419,253.95 - 838,507.92	9%
ARS 838,507.92 - 1,257,761.87	12%
ARS 1,257,761.87 - 1,677,015.87	15%
ARS 1,677,015.87 - 2,515,523.74	19%
ARS 2,515,523.74 - 3,354,031.63	23%
ARS 3,354,031.63 - 5,031,047.45	27%
ARS 5,031,047.45 - 6,708,063.39	31%
ARS 6,708,063.39 and above	35%
Gross Income Tax (provincial tax applicable to self-employed individuals on gross earnings)	Generally around 4%

Allowable Deductions and Tax Credits: Employees are subject to withholding tax at source, for which the employer is responsible (withholding agent). Social security contributions withheld by the employer and personal deductions are deductible from employment compensation for income tax purposes. Residents and non-residents can deduct the following annual personal allowances for FY 2024: 1,089,368.57 for individuals who have been living in Argentina for at least six months during the calendar year, ARS 1,015,579.74 for spouses, ARS 512,160.65 for each child younger than 18 years, ARS 3,812,790.04 for self-employed workers, ARS 4,357,474.33 for new professionals/entrepreneurs.
Donations to tax-exempt charitable institutions are deductible up to a maximum of 5% of net income, the same as for contributions to third-party medical schemes. Other medical expenses may be deducted up to a maximum of 40% of all corresponding invoices of the fiscal year (still capped at 5% of net income). Life insurance purchased from local authorised insurance companies and funeral expenses are deductible (up to limits set annually).
Deductible expenses for personal domestic services are capped at ARS 1,089,368.57 for FY 2024, contingent upon the domestic personnel's proper registration with the social security regime and the monthly payment of applicable social security contributions.
Individuals can deduct up to 40% of their rental expenses (up to a maximum of ARS 1,089,368.57), provided that they correspond to their dwelling and do not own any real property.
Mortgage and all other interest, alimony, education and childcare expenses are not deductible.
Special Expatriate Tax Regime: Non-resident and foreign beneficiaries are only taxable on their Argentine-source income.
Foreign beneficiaries working temporarily in Argentina for up to six months in a year, earning income from visual or performing arts or other professions, are subject to income tax at a rate of 24.5% (35% on an assumed profit of 70% of gross income), withheld by the local payer. Different tax rates may apply depending on the type of income.
Capital Tax Rate: Resident individuals with total assets above ARS 3 million are subject to Personal Assets Tax at rates ranging from 0.5% to 1.75% (for assets held outside of the country, the rates vary between 0.7% to 2.25%). For non-residents, the rate is 0.5% and applies to their assets located in Argentina (does not apply if the tax liability is lower than ARS 250). Equity interests in Argentine companies are subject to a 0.5% tax.
The financial transactions tax of 0.6% on debits and credits in current accounts does not apply to employment compensation and pension payments.
Stamp duty of 1% is levied on the formal execution of public and private instruments including contracts, notarial deeds and promissory notes. Special rates of 0.5%, 1.2%, 3%, and 3.6% apply in certain cases.
Debits and credits from bank accounts incur a tax of 0.6% on the transaction amount. However, deposits and withdrawals of employment compensation and pension payments are exempt from tax.
Employees contribute to the national unemployment fund, family allowances fund, and social services institute for pensioners at a unified rate of 14% (11% for pension funds + 3% for social services institute for pensioners); plus 3% for the social health care plan (subject to a salary cap and an exemption for a portion of the salary; updated 4 times every year in line with inflation).
A tax on real properties is levied annually by provincial authorities, the same as for automobile duty. The province of Buenos Aires has gift and inheritance taxes.
Gross income tax ("Ingresos Brutos") is a provincial tax applicable to self-employed individuals on gross earnings. The average tax rate is 4% in the Federal Capital, with similar rates applying in other provinces. The tax is paid by filing monthly tax returns.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed: List of Double Taxation Treaties

Withholding Taxes

Withholding tax rates are:

Dividends: 0% resident company - 7% resident individual, non-resident company and non-resident individual
Interest: interest paid to resident companies and individuals exceeding a specified monthly threshold is subject to withholding tax at the local level at various rates depending on the payee - 15.05%/35% non-resident company/individual
Royalties: royalties paid to resident companies and individuals exceeding a specified monthly threshold are subject to withholding tax at the local level at various rates depending on the payee - Royalty payments to non-resident individuals for copyrights are subject to a final withholding tax of 35% on 35% of the gross payment, making the effective rate 12.25%, with certain conditions. Film, television, and other royalties involving image or sound reproduction face a final withholding tax of 35% on 50% of the gross payment, yielding an effective rate of 17.5%. Non-resident patent royalties are subject to a final withholding tax of 35% on 80% of the gross payment, resulting in an effective rate of 28% if the agreement is registered with the INPI; otherwise, the effective rate is 31.5% (35% x 90%).

Bilateral Agreement

The United Kingdom and Argentina are bound by a double taxation treaty.

Sources of Fiscal Information

Tax Authorities: Federal Administration of Public Revenue (AFIP), Administración Federal de Ingresos Públicos (AFIP)
Ministry of Economy
Other Domestic Resources: InvestArgentina
Country Guides: PwC Tax Guide - Argentina

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