Tax Guide Argentina

In Argentina, personal income tax calculation is dependent on the residency status of the individual.

In the case where the individual is a resident of Argentina, personal income taxes are levied on the worldwide income.

On the other hand, for non-residents, only that income is taxed that is attributable to, or sourced from Argentina.

Overall, a progressive taxation scheme is imposed in Argentina, and the rates range from 5% to 35%. However, it must be noted that there are special tax rates that are imposed in the case where income is earned from sources including securities, dividends, interest, as well as real property.

Personal Income Tax Rates in Argentina

The following income tax rates are applicable in Argentina. They are as follows:

• For an income between Argentine Peso (ARS) 0 and Argentine Peso (ARS) 64532.64: A tax rate of 5% is applicable.
• For an income between Argentine Peso (ARS) 64532.64 and Argentine Peso (ARS) 129065.29: A tax of ARS 3226.63 is applicable. Furthermore, tax rate of 9% is applicable on the amount over and above ARS 64532.64.
• For an income between Argentine Peso (ARS) 129065.29 and Argentine Peso (ARS) 193,597.93: A tax of ARS 9,034.57 is applicable. Furthermore, tax rate of 12% is applicable on the amount over and above ARS 129065.29.
• For an income between Argentine Peso (ARS) 193,597.93 and Argentine Peso (ARS) 258,130.58: A tax of ARS 16,778.49 is applicable. Furthermore, tax rate of 15% is applicable on the amount over and above ARS 193,597.93.
• For an income between Argentine Peso (ARS) 258,130.58 and Argentine Peso (ARS) 387,195.86: A tax of ARS 26,458.39 is applicable. Furthermore, tax rate of 19% is applicable on the amount over and above ARS 258,130.58.
• For an income between Argentine Peso (ARS) 387,195.86 and Argentine Peso (ARS) 516,261.14: A tax of ARS 50,980.79 is applicable. Furthermore, tax rate of 23% is applicable on the amount over and above ARS 258,130.58.
• For an income between Argentine Peso (ARS) 516,261.14 and Argentine Peso (ARS) 774,391.71: A tax of ARS 80,665.80 is applicable. Furthermore, tax rate of 27% is applicable on the amount over and above ARS 516,261.14.
• For an income between Argentine Peso (ARS) 774,391.71and Argentine Peso (ARS) 1,032,522.30: A tax of ARS 150,361.06 is applicable. Furthermore, tax rate of 31% is applicable on the amount over and above ARS 774,391.71.
• For an income higher than Argentine Peso (ARS) 1,032,522.30: A tax of ARS 230,381.54 is applicable. Furthermore, tax rate of 35% is applicable on the amount over and above ARS 1,032,522.30.

Gross Income Tax

A gross income tax is also levied on as a provincial tax on all self-employed individuals. The tax rate that is levied is 4%.

Foreign Beneficiary Tax

Foreign Beneficiaries, that are working in Argentina for a duration of less than 6 months are supposed to bear Foreign Beneficiary Tax equivalent to 24.5% of income.

Corporate Income Taxation in Argentina

All the legal entities that are declared as resident companies in Argentina are required to pay taxes on their aggregated income. This implies that they have to bear a tax on both, income earned from foreign sources, as well as income earned from sources in Argentina. However, resident companies can also claim taxes that have been paid abroad on their foreign-sourced income. They can get a rebate on these taxes in the form of a tax credit.

On the other hand, as far as non-resident companies are concerned, they are only taxed on the income that has been sourced from within Argentina.

The rate of taxation in Argentina is set at 30%. This has been reduced from a previously set rate of 35%. However, after January 2021, this rate has further been reduced to 25%.

Withholding Tax in Argentina

A withholding tax has also been levied on dividend distributions, as well as branch profit remittances. The levied WHT rate is 7%.

Other Taxation in Argentina

In addition to the corporate income tax mentioned earlier, there are a couple of other taxes that are implemented in Argentina. They are given below:

• Value Added Tax (VAT): VAT is imposed as a consumption tax, on sales of goods and services. VAT is applied at a rate of 21%. This rate is applied across major categories of goods and services. However, some goods and services are also taxed at a rate of 27% or 10.5%.

The increased rate of 27% is applicable on utility services including telecommunications, energy resources, as well as gas.

The 10.5% VAT, however, is imposed only on certain transactions that are deemed as agents for economic growth, at large. Examples include construction, capital goods manufacturing and exports, as well as publicity and advertisement related services (in certain areas only).

VAT is exempted on sales of books, and other educational related activities, in addition to supplication of necessary food items like bread, milk and eggs. Household rentals are also exempted from VAT.

• Import and Export Duties: Import duty is also levied on goods and services ranging from a rate of 0% to 35%. In the same manner, an export duty of 12% is also levied on exports that are classified under tariff positions of Mercosur Common Nomenclature.
• Excise Taxes: Excise Taxes are also assessable on a wide variety of items that are sold in Argentina, on items that are discouraged for consumption. Examples include tobacco, alcohol related products, as well as precious stones.
• Stamp Tax: All the different jurisdictions in Argentina have different rates applicable in lieu of stamp tax. The general rate, however, is set at 1%. Other special rates are also present, depending on the type of legal document sought.
• Turnover Tax: All the 24 jurisdictions in Argentina are subject to a Turnover Tax that is levied on gross revenues. The exact rates of turnover tax depend local governments. The average rates are levied varying from 3% to 5%. However, in case of industries, rates differ and are lower.
• Tax on Financial Transactions: Argentina has also imposed a tax on financial transactions equivalent to 0.6% of deposits and withdrawals. Additionally, 1.2% is also levied on transactions that are made in the bank without using a given bank account.