Consumption taxes

Nature of the tax

Value Added Tax (VAT)

Tax rate

The general rate of VAT is 21% charged on the net price of transactions, but certain public services or subsidiaries of telecommunications companies are subject to a rate of 27%. .
Excise duties, levied as a federal tax, are also collected on some products and services: tobacco, drinks whether they are alcoholic or not, beer, some electronic goods (television, radio, etc.), mobile telephone services, insurance premiums, luxury goods, etc.

Reduced tax rate

Equipment or production goods, public transport, beef, fresh vegetables, accommodation, interest on loans acquired by Argentine financial institutions, some goods of ownership and equipment, newspapers and magazines are subject to VAT at 10.5%.

Other consumption taxes

The tax called Ingresos Brutos is a federal tax which is paid to the province for each invoicing. In the Buenos Aires province, the rate is 3%. For more details on rates in other provinces and all other tax issues, consult the Argentina Tax Guide 2010.

Corporate taxes

Tax rate

Tax rate for foreign companies

Companies domiciled in Argentina are subject to income tax on all their income, whether sourced in Argentina or in a foreign country. Non-resident companies are subject to tax on Argentine source income.

Capital gains taxation

The tax rate on long-term capital gains is 35%.

Main allowable deductions and tax credit

Expenses are deductible for depreciation or amortization, reserves, rents for premises and equipment, wages, etc. Interests are generally deductible provided they are incurred on loans taken out for business purposes.

Other corporate taxes

As employees, employers must make social security and health care scheme payments at a rate of 23% to 27% of the salary depending on the activity and the size of the company.

Individual taxes

Tax rate

Allowable deductions and tax credit

Under the Income Tax Act, some exemptions are provided for the financial and capital markets, whereby interest on time deposits, government securities, and income from stocks and bonds that are quoted on the Stock Exchange are not subject to tax. Employees are subject to withholding tax at source, for which the employer is responsible (withholding agent).

There are several types of allowances or tax reductions. The amounts vary from 1,200 ARS to 18,000 ARS. For more details consult the Argentina Tax Guide 2010.

Special expatriate tax regime

There is no specific tax regime for expatriate.

Double taxation treaties

Countries with whom a double taxation treaty have been signed

Web site of the Administración Federal de Ingresos Públicos (AFIP)

Withholding taxes

Withholding tax rates are: Dividendes: 0%/35% ; Intérêts: 15.05% - 35% ; Royalties: 21%, 28% ou 31.5%.

Bilateral agreement

Sources of fiscal information

Tax Authorities

Administración Federal de Ingresos Públicos (AFIP)

Other domestic resources

The AFIP library (norms, case laws, various tax documentations).