Argentina presents an appealing destination for foreign investors owing to its diverse and resource-rich economy. With abundant natural resources, a skilled workforce, and a strategic geographic location, business owners are keen to invest and start a company in Argentina.
After forming a company, it is essential to stay up-to-date with all accounting and tax obligations to ensure compliance with local authorities. Our helpful guide will enhance your knowledge about accounting and tax requirements in Argentina.
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Accounting and Tax Requirements in Argentina – Tax Categories in Argentina
In Argentina, taxes are collected at the federal, provincial, and municipal levels. Federal taxes are primarily collected by the Federal Administration of Public Revenue (Administración Federal de Ingresos Públicos – AFIP), and the main federal taxes include –
- Income taxes.
- Minimum presumed income tax.
- Social security.
- Value-added tax (IVA).
- Import and export taxes.
- Tax on financial transactions.
- Net-worth tax.
- System of Withholding Tax Control (SICORE).
Provincial taxes are mainly collected by AGIP (Gubernamental Agency of Public Revenue) and ARBA (Revenue Collection Agency of the Province of Buenos Aires), with the primary provincial tax being the Gross Income Tax.
What is the corporate taxation in Argentina?
Let’s start with the corporate tax rate, as shown in the table below.
- Corporate income tax rate:
- IVA (Value-Added Tax): 21%
- Gross Income Tax (Ingresos Brutos): 3% to 7.50%
Taxation: Residents and Non-Residents
The income tax law in Argentina establishes that individuals or legal entities resident in the country are subject to tax on their worldwide income, whether earned domestically or abroad. They can receive tax credits for similar taxes paid on their foreign activities.
Non-residents are subject to tax only on their Argentine-source income. Generally, non-resident taxes are collected through a final withholding tax, depending on the type of income.
*Income taxes are payable on the net income earned during the fiscal year.
Accounting and Tax Requirements in Argentina – Tax Agreements
Argentina has signed agreements to avoid double taxation with several countries, including Germany, Australia, Belgium, Bolivia, Brazil, Canada, Denmark, Finland, the United Kingdom, Italy, Sweden, France, Norway, Russia, Spain, Switzerland, the United Arab Emirates, Mexico, the Netherlands, Qatar, and Chile.
These agreements were established to prevent double taxation between residents in different jurisdictions, with the primary aim of reducing the tax burden on residents of various jurisdictions under these agreements.
Frequently Asked Questions when understanding accounting and taxation in Argentina
Based on our extensive experience these are the common questions and doubts from our clients when looking to understand accounting and taxation in Argentina.
In Argentina, tax rates for companies range from 25% to 35%. In general, micro and medium-sized enterprises pay a rate of 30%.
In Argentina, companies must pay taxes on their goods and services when they have been perfected with the delivery of goods and services. The taxes they must pay are at the local, provincial, and national levels.
The equivalent of the IRS in Argentina is the Federal Administration of Public Revenue (AFIP), the Collection Agency of the Province of Buenos Aires (ARBA), the Government Agency of Public Revenue (AGIP), and municipalities.
The accounting standards, regulated and issued by the FACPCE (Argentine Federation of Professional Councils of Economic Sciences), include:
– Accounting and auditing standards, including technical resolutions, IFRS adoption circulars, interpretations of international accounting standards, and other documents.
– Corporate Receivership Rules.
– Anti-Money Laundering Regulations.
– Standards of Professional Conduct for Certified Public Accountants, Actuaries, and Graduates in Economics and Administration.
The professional in Economic Sciences is the National Public Accountant, a professional who publicly attests to their functions and must by law be required to have a qualifying license to practice the profession in the jurisdiction in which they operate in the country.
The IASB’s International Financial Reporting Standards (IFRS) are adopted in the country. These standards have different levels of application:
– Mandatory for entities under the control of the CNV.
– Optional for entities not subject to IFRS obligation.
– Discontinuous if previously applied optionally.
– Comprehensive for entities that present consolidated or individual financial statements, depending on their control over other entities.es that present consolidated or individual financial statements, depending on their control over other entities.
Biz Latin Hub can assist you with accounting and Tax Requirements in Argentina
Biz Latin Hub provides tailored market entry support and integrated back-office service packages to meet the unique needs of our clients.
That makes us the ideal partner for supporting cross-border operations and facilitating multi-jurisdiction market entry.
We are committed to compliance with regulations everywhere we operate, so working with us comes with the guarantee that your company will adhere to every aspect of employment law in Argentina or any other country where we assist you.
Contact us today to find out more about how we can support you in doing business in Argentina.
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