If you are active in the Argentinian market or considering company incorporation in Argentina, you will need to find a reliable corporate accounting firm to support you. Because a good accountant in Argentina will be able to help you better plan your taxes and maximize your financial efficiency, while remaining in full compliance with local regulations.
Being the third-largest economy in Latin America by gross domestic product (GDP), Argentina offers a host of opportunities to investors, despite the country experiencing some economic difficulties in recent years.
Notably, Argentina has seen significant growth since a well-publicized debt crisis in the early-2000s, with GDP increasing more than four-fold between 2002 and 2019, even though it witnessed decline in the final two years of that period.
The South American country has witnessed a corresponding overall rise in prosperity, with gross national income (GNI) more than tripling during that same period, to hit $11,130 per capita in 2019 (all figures in USD unless otherwise stated) — placing the country as an upper-middle income nation based on World Bank criteria.
Argentina has a diversified economy, with a strong and well-developed industrial base that includes a large vehicle manufacturing sector, as well as some of the highest-quality professional services in Latin America, buoyed by the greatest level of English proficiency among non-English speaking nations in the region. Those come on top of a wealth of mineral and agricultural resources, with some of the country’s main exports including soy, cereals, and meat.
As a member of the Southern Common Market (Mercosur) — a 30-year-old economic integration initiative that also includes Brazil, Paraguay, and Uruguay — Argentina is party to a number of free trade agreements, offering locally based businesses preferential access to key South American markets including Chile, Colombia, and Peru, as well as the likes of Egypt and Israel.
If you are looking to enter the Argentinian market, or already active there and in need of a good accountant in Argentina, read on to understand what they will be able to do for your business, as well as some of the main taxes they will help you deal with.
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What will your accountant in Argentina do for your business?
Argentina has a strict tax system and tax authorities are known for studiously issuing penalties for non-compliant activities. Your accountant in Argentina — whether you choose a dedicated accounting firm or a general provider of back-office support — will be well schooled in the particularities of the Argentinian tax system and will be able to guarantee that you avoid any sort of legal inconvenience or penalties related to your accounts and periodic reporting responsibilities.
Beyond that, your accountant in Argentina will be able to help you properly plan and manage your taxes in order to reduce your burden as much as possible. Where you have operations in other markets, a provider with an international presence can be preferable, as they will have knowledge of the tax regimes in those other markets and experience in helping clients manage their burdens across borders.
Argentina has a number of double taxation agreements in place, including with the likes of Australia, Canada, and Russia, as well as with several European and South American nations, which your accountant will be able to help you take advantage of where applicable.
Taxes your accounting firm in Argentina will help with
Your accountant in Argentina will be able to assist you in the management of the following taxes.
Value-added tax (VAT): in Argentina is set at 21% on almost all products and services, although a VAT rate of 27% applies to certain goods or services, including gas, energy, and water supply, as well as on telecommunications. When it comes to food, medical gear, books and transport, VAT is set at a lower rate of 10.5%.
Corporation tax: following a recent reform, corporation tax is now set at between 25% and 35%, with corporations paying a tax rate of 25% on up to 5 million Argentinian pesos (approximately $51,500 at time of publication); a tax rate of 30% on profits between 5 million and 20 million Argentinian pesos; and a tax rate of 35% on profits that exceed 20 million Argentinian pesos (approximately $205,000).
Taxes on foreign transactions: are set at between 0% and 30% depending on the product or service, based on a Mercosur-established foreign trade agreement known as the Common External Tariff.
Property Tax: is set at the state level in Argentina, both for real estate and for automobiles, so your property tax burden can range. As such you may wish to seek the advice of an accountant in Argentina before making a purchase.
Wealth tax: came into effect in December 2020, in part with the intention of helping the country overcome the turmoil of the global pandemic. Under the terms of the new wealth tax, residents with more $2.4 million of assets must pay a one-time tax set at 2% of those assets.
Social security tax: is set at 23%, however an entity can apply to be categorized as a small- or medium-sized enterprise (SME), making it eligible for a lower rate set at between 19.5% and 19.8%.
Gross Income Tax: is set at the state level and is calculated based on individual sales, with a general rate of 3%. However, it can be set at between 1% and 8%, depending on the good or service involved.
Other taxes: Non-essential products, such as mobile phones, and consumables that carry public health hazards, including tobacco and alcohol, are subject to a 60% tax rate.
Biz Latin Hub can be your accountant in Argentina
At Biz Latin Hub, our multilingual team of accounting & taxation professionals has the knowledge and expertise to provide expert support for your operations in Argentina. With our complete portfolio of back-office solutions, including company formation, legal services, visa processing, and recruitment, we can be your single point of contact for entering and doing business in the Argentinian market, or any of the other 17 markets around Latin America and the Caribbean where we have teams in place.
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