Argentina is an important player in international affairs being the eight largest country in the world and ranking as the 3rd largest economy of Latin America in 2015. In addition, the government of Argentina has actively encouraged foreign investment through trade agreements, guarantee agencies and investment settlement institutions in case of disputes and/or disagreements over intellectual property.
If you are looking to set up your business in the country or are already working for a company as an expat and need an overview of taxes for foreigners living in Argentina, below is a breakdown of taxes to be aware of.
Tax Overview for Foreigners Living in Argentina
- Businesses are taxed 35% on net taxable profits.
- 1% tax on minimum national income is charged on fixed and current assets.
- 0.5% Wealth Tax is applied on shares as of 31st December of each year.
- Businesses with establishments fall under a specific tax bracket based on their activity.
- 21% VAT is applied to the final value of products and services although some goods are granted a reduced rate of 10.5%.
Argentina has a progressive tax regime where both foreigners and locals are taxed proportionally according to their income, which can be anywhere from 9% to 35%. If you need to file your tax returns, the deadline for the tax year of January 1st to December 31st is on April 15th of the following year. As an employee in Argentina, you can save yourself from filing tax returns as employers are required to deduct taxes from employee salaries. If you are an expat with over 2 years of residency in Argentina, 17% of your salary will go to contribute to social security. As an American citizen, you can avoid certain U.S tax obligations through the Foreign Earned Income Exclusion, the Foreign Tax Credit, and the Foreign Housing Exclusion.
To find out more about Argentinian taxes when working or running a business abroad, be sure to contact us at Biz Latin Hub. Our team will be glad to answer any question you may have regarding company formations or doing business in Argentina. Contact Craig here.