Argentina is a growing market in Latin America full of business opportunities. Investors are now looking to the region as a place to invest, and many choose to 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. Read more to know about the 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 main provincial tax being the Gross Income Tax.
Argentine Tax Rates
- Corporate income tax rate:
|ACCUMULATED TAXABLE NET INCOME||PAY||PLUS %||ON THE EXCESS OVER$|
|OVER $||UP TO$|
|$ 0,00||$ 14.301.209,21||$ 0,00||25 %||$ 0,00|
|$ 14.301.209,21||$ 143.012.092,08||$ 3.575.302,30||30 %||$ 14.301.209,21|
|$ 143.012.092,08||Onward||$ 42.188.567,16||35 %||$ 143.012.092,08|
- 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 different jurisdictions under these agreements.
Common 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, 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, which include 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 his or her functions and must by law be required to have a qualifying license to be able to practice the profession in the jurisdiction in which he or she operates 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.
Biz Latin Hub can assist you with accounting and Tax Requirements in Argentina
At Biz Latin Hub, we offer market entry support and packages of integrated back-office services tailored to the individual 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 doing business in Argentina.
Or learn more about our team and expert authors.
The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.