Argentina has signed a series of double tax treaties with countries worldwide, in order to avoid double taxation for the same income. We invite you to discover information about how taxation is done in the case of companies in Argentina and how they are protected by the agreements above mentioned. Our lawyers in Argentina are at your disposal with expert advice if you want to know more about the taxation system in this country.
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How is foreign tax relief applied in Argentina?
Double tax treaties (DTTs) signed by Argentina aim to avoid double taxation of incomes, either for companies or for natural persons. Argentina has signed a series of such agreements with many countries around the world, and among the provisions, we list:
- Personal income tax (PIT) applies in Argentina. But if the income is also taxed in the country of origin of the respective person, tax relief will be applied, if Argentina has signed a double tax treaty with the respective country.
- Treaties signed by Argentina specify how taxation is done, depending on the fiscal residence and what reliefs apply.
- In most cases, tax treaties mention specific clauses with the help of which an individual is exempt from taxation on incomes outside the other country, respecting the residence of less than 183 days in a year.
- Income tax paid abroad on foreign sources of revenue benefits from tax credits, under certain conditions. In this case, the foreign tax credit must not exceed the share of Argentine tax attributable to the foreign source of income.
We advise you to learn more about double tax treaties in Argentina from our specialists. Our attorneys in Argentina can advise you on the taxes you have to pay, either as a natural person or within the company owned in this country.
What are the countries with which Argentina has signed double tax treaties?
Argentina has signed double tax treaties with countries such as Australia, Belgium, France, Russia, Germany, Spain, Bolivia, Italy, Sweden, Brazil, Switzerland, Canada, Chile, Mexico, the UAE, the Netherlands, the UK, Denmark, Norway, Finland and Qatar. There are also treaties awaiting ratification with China, Turkey, and Japan. On the other hand, there are totalization agreements with Italy, Colombia, Belgium, Luxembourg, France, Greece, Portugal, Slovenia, Ecuador, Peru, Spain, Paraguay, and Uruguay and they refer to social security taxation on incomes and the avoidance of double taxation.
Some of the applicable taxes in Argentina
Below are some of the most important taxes in Argentina:
- Corporate income tax (CIT) in Argentina is 25% for incomes up to ARS 14,302,209. CIT of 30% is applied for the amount that exceeds the threshold mentioned above.
- The withholding tax in Argentina imposed on the distribution of dividends and branch profit payments is 7%.
- 21% is the standard VAT rate in Argentina. Lower rates apply to specific products and services in Argentina.
- The turnover tax or the gross income tax in Argentina ranges from 3% to 5%. Lower rates apply in the industry sector.
In addition to assistance in tax matters, our Argentine lawyers can also help you with procedures related to immigration to Argentina. We offer specialized assistance for those interested in residency in Argentina if they want to relocate here. Moreover, we can help residents to obtain Argentine citizenship, if they are interested in this status. Do not hesitate to contact our law firm in Argentina and learn more about the legal services offered.