Argentina: Business Environment
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.
From 1 January 2023, the VAT rates applicable to editorial production; renting advertising space in newspapers, magazines, and periodicals; and online news portals are amended based on the VAT taxpayer’s sales (excluding VAT) of the previous 12 months. The relevant rates are (i) 2.5%, (ii) 5%, (iii) 10.5%, and (iv) 21% for prior year VAT exclusive sales of (i) ARS 250 million or less, (ii) more than ARS 250 million but not exceeding ARS 500 million, (iii) more than ARS 500 million but not exceeding ARS 1,000 million, and (iv) more than ARS 1,000 million.
Export duties are imposed on goods with rates varying according to the type of goods. Furthermore, a 30% solidarity tax applies on all purchases of foreign currency by Argentine individuals for investment purposes, or by companies and individuals for payment of foreign expenditure (e.g. travel and accommodation, foreign digital services for personal use). As from 13 October 2022, the scope of the tax was extended to cover the acquisition outside Argentina (or within Argentina if provided by a nonresident) of personal, cultural, and recreational services (other than educational services), and the importation of certain luxury goods.
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).
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: Doing Business, Latest available data.
Personal Income Tax | Rate |
ARS 0 - 173,834.61 | 5% |
ARS 173,834.61 - 347,669.23 | 9% |
ARS 347,669.23 - 521,503.84 | 12% |
ARS 521,503.84 - 695,338.47 | 15% |
ARS 695,338.47 - 1,043,007.68 | 19% |
ARS 1,043,007.68 - 1,390,676.90 | 23% |
ARS 1,390,676.90 - 2,086,015.35 | 27% |
ARS 2,086,015.35 - 2,781,353.85 | 31% |
ARS 2,781,353.85 and above | 35% |
Gross Income Tax (provincial tax applicable to self-employed individuals on gross earnings) |
Generally around 4% |
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).
Individuals can deduct up to 40% of their rental expenses (up to a maximum of ARS 451.683,19), 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.
Withholding tax rates are:
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Latest Update: November 2023