As we’re in the middle of tax period you may be wondering if and when you need to pay taxes in Argentina as an expat. In this article we give you an overview of the Argentine tax calendar and how it affects expats as individuals and as business owners.
When Do I Have to Pay Taxes as an Expat in Argentina?
First of all, whether you’re a resident or a foreign beneficiary (working in Argentina on a non-permanent basis) and your only source of income in Argentina is from employment you do not need to file a tax return; taxes will be withheld at source by your employer. However, if you have resident status and you earn an income from other sources such as self-employment or investment then you will indeed have to file a tax return. Other taxable incomes include incomes from rent, dividends and interest.
As an expat in Argentina, the process for filing your individual annual tax return is the same process as for Argentine citizens and the exact date depends on the last numbers of your tax registration number. However, this usually happens around the middle of June each year.
You might also be interested to know that the tax year in Argentina is the same as the calendar year and individuals must start paying their taxes bi-monthly from July for that same tax year. After making 5 payments, they must pay the remaining amount at the same time as they must hand in their annual tax return, usually around mid-June of the following tax year. For late payments there is a penalty of 3% per month as well as a fine which can amount to 100% or 200% of the tax left to be paid.
When Do Companies Have to Pay Taxes in Argentina?
If your company is incorporated in Argentina or it’s a branch of a foreign company operating in Argentina, you will have to file an annual tax return. The final date for tax returns in Argentina is on the 15th day of the sixth month following the fiscal year. In Argentina, as the fiscal year is the same as the calendar year, all final tax returns for companies must be handed in by Friday 15 June 2018.
Similarly to individuals, companies must make income tax payments throughout the year. The payment structure for companies consists of 10 payments throughout the year with the first instalment being equivalent to 25% of the previous year’s tax liability and the following 9 instalments equalling 8.33% of the previous year’s tax liability. These payments must begin on the 20 June for that same fiscal year and the final tax return must be made on the 15 May of the following year. For late payments there is a penalty of 3% per month as well as a fine which can amount to 100% or 200% of the tax left to be paid.
More Information on Paying Taxes as an Expat in Argentina
At the Biz Latin Hub group, we have a team of local and expat professionals that have the expert knowledge and experience to advise on accounting matters and to assist you with all your back-office needs. If you’re an expat and/or a business owner in Argentina and you would like more information about taxes and accounting or any other queries, please don’t hesitate to get in contact with our local team.
If you’re interested in finding out more about how Biz Latin Hub can help you with your accounting needs, check out our video below!