Verified Facts
Tax rates in Argentina range from 9% to 35% for individuals, with a corporate tax rate of 30% and a value-added tax (VAT) rate of 21%, and understanding these rates is crucial for both residents and expats to navigate the country's tax system.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Argentina has a territorial tax system, which means that individuals and companies are taxed on their income earned within the country, regardless of their residence status. However, worldwide taxation applies to Argentine residents, who are taxed on their global income, with credits available for taxes paid abroad. Residency rules for tax purposes are based on physical presence in the country for at least six months in a calendar year, or having a permanent home in Argentina.
The tax system in Argentina is administered by the Federal Administration of Public Revenues (AFIP), which is responsible for collecting taxes, customs duties, and social security contributions. Taxpayers are required to register with the AFIP and obtain a tax identification number to file tax returns and pay taxes. The tax year in Argentina runs from January to December, and tax returns must be filed by June 30th of the following year.
Personal Income Tax
| Income Bracket (ARS) | Tax Rate |
|---|---|
| 0 - 175,665 | 9% |
| 175,666 - 351,330 | 12% |
| 351,331 - 527,995 | 15% |
| 527,996 - 703,660 | 20% |
| 703,661 and above | 35% |
Personal income tax in Argentina is progressive, with five income brackets and tax rates ranging from 9% to 35%. Taxpayers are allowed to deduct certain expenses, such as mortgage interest, charitable donations, and medical expenses, from their taxable income. Tax returns must be filed electronically, and payments can be made online or at authorized banks. Taxpayers are also required to make advance tax payments throughout the year, based on their estimated tax liability.
Corporate & Business Tax
- The corporate tax rate in Argentina is 30%, with a minimum tax of 1% of gross income.
- Small businesses with annual revenues of up to ARS 48 million may be eligible for a reduced tax rate of 20%.
- Argentina has several free zones, including the Tierra del Fuego free zone, which offer tax incentives and exemptions for companies operating within these areas.
- Companies must register with the AFIP and obtain a tax identification number to operate in Argentina.
- Foreign companies with a permanent establishment in Argentina are subject to corporate tax on their Argentine-sourced income.
VAT / Sales Tax
- The standard VAT rate in Argentina is 21%, with reduced rates of 10.5% and 5% applying to certain goods and services, such as basic foodstuffs and public transportation.
- Exemptions from VAT include financial services, rental income, and exports.
- A tourist refund scheme is available for foreign tourists who purchase goods and services in Argentina, allowing them to claim a refund of the VAT paid.
- VAT returns must be filed electronically, and payments can be made online or at authorized banks.
For Expats & Foreign Workers
- Expats are considered tax residents in Argentina if they spend more than six months in the country in a calendar year, or have a permanent home in Argentina.
- Argentina has double taxation treaties with over 65 countries, which can help reduce or eliminate double taxation on income earned by expats.
- Expats are required to register with the AFIP and obtain a tax identification number to file tax returns and pay taxes in Argentina.
- Social security contributions are mandatory for expats working in Argentina, and are used to fund pension, healthcare, and unemployment benefits.
- Expats may be eligible for a foreign earned income exclusion, which can reduce their taxable income in Argentina.
- Remittances of income earned by expats in Argentina are subject to withholding tax, which can be reduced or eliminated under certain double taxation treaties.
Crypto & Investment Income
- Investment income, including dividends, interest, and capital gains, is subject to income tax in Argentina.
- Cryptocurrency is considered an asset for tax purposes, and gains from the sale of cryptocurrency are subject to capital gains tax.
- Taxpayers are required to declare their cryptocurrency holdings and transactions on their tax returns, and may be subject to penalties for non-compliance.
- Argentina has introduced tax incentives for investment in certain emerging technologies, including blockchain and artificial intelligence.