If you want to do business in Argentina and want to know what taxes you need to pay, these rows provide you with important information. With the help of our lawyers in Argentina, you can register your company for tax purposes in this country and benefit from specialized legal help for any changes to the law that apply to your company.
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What are the most important taxes in Argentina?
Here are some of the main taxes that must be paid in Argentina by business owners and natural persons:
- Income tax (impuesto a las ganancias) – Ranges from 27% to 35%, depending on the annual income (35% is imposed for incomes of at least ARS 53,153,257/year)
- Gross income tax – 4% imposed on the self-employed in Argentina on gross income.
- VAT (IVA or sales tax in Argentina ) – The standard value-added tax in Argentina is 21% for most products and services for sale. Lower VAT rates are also applicable in Argentina, plus exemptions under certain conditions.
- Wealth tax – Ranging from 0.5% to 1.25%, depending on the type of assets. Everything that exceeds ARS 40,107,214 is subject to the minimum wealth tax of 0.5% rate.
- Withholding tax (WHT) – 7% is the rate imposed on dividend distributions in Argentina. However, withholding taxes from payments of royalties and interest to non-resident companies is based on a flat rate of 35% that applies to an assumed proportion of gross profit margin. However, there are also special regimes of WHT.
These are some of the most important taxes in Argentina. We invite you to discuss more with our Argentine lawyers if you open a business here and want to know what taxes you have to pay.
Personal income tax in Argentina
Persons with residency in Argentina can be subject to taxes for income generated here. Th personal income tax applies as follows:
- 35% is the personal income tax (PIT) for incomes of over ARS 53,153,257/year. The PIT applies after applicable deductions.
- There is no PIT for incomes of ARS 1,749,902/year for sole traders in Argentina.
- 5% PIT applies to annual taxable income of at least ARS 3,500. The excess up to ARS 87,495 is taxed with a 9% PIT.
What is the foreign beneficiary tax in Argentina?
The foreign beneficiary tax in Argentina is a tax scheme that applies to seasonal workers. In this case, the personal income tax is 24.5% if their work does not exceed 6 months in Argentina. Learn more about taxation in Argentina by getting in touch with our local tax specialists.
Foreign tax relief in Argentina
Argentina has signed various double taxation treaties with countries worldwide. These agreements are intended to protect profits from double taxation. With over 21 double tax treaties already signed, Argentina is among the countries that protect the business climate and foreign entrepreneurs from over taxation.
Tax authority in Argentina
The Custom Collection Control Agency (ARCA) is the tax authority in Argentina and the one that collects taxes in this country. It is good to know that the institution can penalize those who fail to file the tax return, the fine being up to ARS 400. Also, those who do not pay taxes are fined up to 100% of the value of the respective taxes.
If you want other information besides the one about the Argentine tax system, you should know that our lawyers can help you. For example, our immigration lawyers in Argentina can help you with the relocation process. In this case, all the formalities for obtaining residency in Argentina will be managed. Don’t hesitate and contact our law firm in Argentina to benefit from complete and efficient legal services, personalized and at advantageous prices.