Hamburger
  • Residence and basis for taxation

    In Argentina coexist three levels of taxation which are Federal, Provincial (state) and Municipal level.

    An entity is deemed as resident for tax purposes when it is incorporated in Argentina under the laws of Argentina. An Argentine individual is considered a tax resident unless he or she loses his tax residence status by choice, obtains legal residence in other country, or by fact, when the individual is outside the country for at least a twelve months period, with certain exemptions.

    Domestic 

    Local entities and resident individuals are subject to income tax on domestic and foreign source income.

    Foreign 

    Non resident entities or individuals are taxed on income of Argentine source. The tax applicable is the income tax that comprises corporate earnings and capital gains. In general, a local resident paying to a foreign entity or individual is obliged to withhold income tax. The withholding rate varies in connection with the type of the payment.

    Permanent establishments are taxed as local entities on income attributable to the permanent establishment.

    Income tax on indirect transfer

    Income tax on an indirect transfer may apply if a non resident entity is transferred provided that at least 30 percent of value of the entity is represented by assets located in Argentina and provided that the transferor owns at least 10 percent of the capital of such entity.

  • Taxable income

    Domestic

    In general the taxable income in the income tax for resident entities and resident individuals is equal to gross earnings minus deductions. In general, all expenses incurred to obtain, maintain and preserve taxable income are deductible unless expressly forbidden.

    Foreign 

    Non resident entities and individuals are taxed in the income tax on the incomes of Argentine source. The local resident paying to a foreign entity or individual is obliged to withhold the income tax at a 35 percent tax rate applied on a presumption of taxable income that varies in connection with the concept by which the payment is made. The presumption of taxable income can be from 35 percent up to 90 percent of the amounts paid.

    For incomes connected to the transfer of shares, bonds or titles, or incomes connected with the rental of real estate or the transfer of assets located in Argentina owned by a non resident, the non resident individual or entity is entitled to choose to apply the presumption of income or to present evidence of all the expenses incurred and deduct those expenses from the gross amount to be paid.

  • Tax rates

    Domestic

    Local entities are subject to an income tax rate of 30% for fiscal year 2019 and 25% as of fiscal year 2020.

    In general, local individuals are taxed at a progressive tax rate that goes from 5% to 35%, except for earnings with a fixed tax rate. Those are the following:

    • For local individuals the transfer of sovereign bonds, or any title is taxed at a 5% income tax rate if the title is issued in Argentine pesos, or 15% income tax rate if a share of a corporation is transferred, or if the title or sovereign bond is issued in Argentine pesos with adjustment clause or in foreign currency
    • The transfer of real estate by a local individual is taxed at a 15% of income tax rate
    • Interests of financial investments such as bank deposits, sovereign bonds, negotiable obligations, financial trusts and similar, issued in Argentine pesos without adjustment clause, are taxed at an income tax rate of 5%. The applicable tax rate is 15% when issued in Argentine pesos with adjustment clause or when issued in foreign currency
    • Dividends paid to a local individual are taxed at a 7% tax rate for fiscal year 2019 and 13% as of fiscal year 2020

    Foreign

    In general non resident entities and individuals are taxed at an income tax rate of 35% applied on the presumption of taxable income with effective tax rates of 12.5% up to 31.5% (see Taxable Incomes). Some concepts are not taxed at the general 35% tax rate and are taxed to an specific tax rate.

    • Transfer of sovereign bonds or any title (public or private) is taxed at a 5% income tax rate if the title is issued in Argentine pesos, or 15% income tax rate if the title is issued in Argentine pesos with adjustment clause, or in foreign currency. The transfer of shares of a local corporation is taxed at a 15% income tax rate. This assumes that the foreign beneficiary is in a jurisdiction considered as cooperative for tax purposes
    • Interests of financial investments such as bank deposits, sovereign bonds, negotiable obligations, financial trusts and similar, issued in Argentine pesos without adjustment clause are taxed at an income tax rate of 5%. The applicable tax rate is 15% when issued in Argentine pesos with adjustment clause or when issued in foreign currency. This provided that the foreign beneficiary is in a jurisdiction considered as cooperative for tax purposes
    • Dividends paid to a non resident individual or entity are taxed at a 7% tax rate for fiscal year 2019 and 13% as of fiscal year 2020

    The applicable tax rates can be lower if a double taxation treaty is applicable.

  • Tax compliance

    Local entities and individuals are obliged to fill tax returns at federal, state and municipal level depending on their activities. Tax returns mas be filled on monthly or yearly bases depending on the tax.

    Information regimes are applicable to certain activities.

    Advance payment regimes are applicable for some taxes.

  • Alternative minimum tax

    Not applicable for this jurisdiction.

  • Tax holidays, rulings and incentives

    Tax holidays

    Not applicable for this jurisdiction.

    Tax rulings 

    In some cases, taxpayers are entitled to present to the tax authorities a request for a ruling on a specific case. The ruling is binding for the consultant. 

    Tax incentives

    There are tax incentives at the federal, state and municipal level which target specific activities such as renewables and software services and development.

  • Consolidation

    Not applicable for this jurisdiction.

  • Participation exemption

    Argentina tax legislation does not provide for a participation exemption.

    Dividends paid by a local entity to another local entity are exempt from income tax. Dividends are only taxed when distributed to a local individual or to a foreign entity or individual.

  • Capital gain

    Capital gains are taxed by the income tax.

    Domestic and foreign, see Taxable income and Tax rates.

    Income tax or indirect transfer

    Income tax on indirect transfer may apply if a non resident entity is transferred provided that at least 30% of value of the entity is represented by assets located in Argentina and provided that the transferor owns at least 10% of the capital of such entity. When the transfer is carried on intragroup the income tax on indirect transfer is not applicable.

  • Distributions

    Distributions are taxed as dividends. Regardless of the tax residence of the recipient, dividends are taxed at a 7% tax rate for fiscal year 2019 and 13% as of fiscal year 2020.

    Domestic and foreign, see Taxable income and Tax rates.

  • Loss utilization

    Losses can be carried forward and can be offset with future profits for a five-year period.

    Losses considered to be of Argentine source can be offset only with profits considered to be of Argentine source. Losses considered to be of foreign source can only be offset of foreign source profits.

  • Tax-free reorganizations

    In Argentina it is possible to carry on an intragroup reorganization with no tax effects. Mergers, spinoffs or partial spinoffs are exempted from income tax, VAT and turnover tax if certain requirements are met.

    Income tax on indirect transfers can also be carried on with no tax costs if it is an intragroup transfer.

  • Anti-deferral rules

    According to CFC rules, the profits of a foreign entity directly or indirectly owned by a local entity or individual should be declared and taxed in the fiscal year of accrual in the following cases.

    • Trusts: When the trust is revocable, when the settlor is also the beneficiary, or when the resident individual or entity has full control of the trust
    • When the foreign entity is not considered a tax resident of the jurisdiction where it is incorporated
    • When:
      • The local individual or entity directly or indirectly owns at least 50% of the capital of the foreign entity
      • The foreign entity does not have sufficient structure to carry on its business or when at least 50% of the profits of the foreign entity are passive income
      • The taxes paid by the foreign entity in the country where it is incorporated are less than the 25% of the income tax that would be payable in Argentina (this requirement is deemed as occurred if the entity is incorporated in a non-cooperative jurisdiction)
  • Foreign tax credits

    Subject to conditions and limitations, foreign tax credits are available for foreign income taxes paid.

  • Special rules applicable to real property

    Domestic and foreign

    When a local entity or a non resident individual or entity sells or transfers real estate property located in Argentina, income tax is triggered.

    For resident individuals, if the real estate property that is being transferred has been acquired by the seller before January 1, 2018, no income tax is applicable, and the local individual must pay a special tax on transfer of real estate property. 

    There is the possibility of a tax deferral on the income tax applicable to the sale of a real estate property using a sale and replacement mechanism.

  • Transfer pricing

    Argentine transfer pricing rules apply to transactions between an Argentine party and a foreign related entity or any entity domiciled in a tax haven jurisdiction, a jurisdiction considered as non-cooperative, or that is subject to a privileged tax regime.

    Argentine transfer pricing rules follow arm's-length rule and follow the OECD guidelines with some divergences.

  • Withholding tax

    (see Taxable income and Tax rates.)

    Domestic

    Payments made by banks and financial institutions made to local entities or individuals in the case of interests on bank deposits or financial investments are subject to income tax withholding.

    Dividends paid by a local entity to a local individual are subject to income tax withholding. The tax rate applicable is 15%.

    Foreign

    Non resident entities or individuals are taxed on their income considered to be of Argentine source.

    The local payer is obliged to withhold the income tax at the time of the payment. Tax rates and presumptions of taxable income vary in connection with the type of payment made.

    Tax treaties may reduce or eliminate withholding of income tax.

  • Capital duty, stamp duty and transfer tax

    Capital gains are taxed by the income tax (see Taxable income and Tax rates.).

    Stamp duty or Stamp Tax is a provincial tax triggered by the entering of written agreements signed by both parties. The tax rate applicable varies in connection with the province and in connection with the agreement. Tax rates are of 0.2% up to 5% of the total amount of the agreement.

    There are legal mechanisms to avoid the payment of Stamp Tax by entering into an agreement as an offering letter.

    Transfers of shares, assets and real estate property are taxed under the income tax (see Taxable income and Tax rates.).

  • Employment taxes

    Employers must withhold income tax and social security contributions. Employers also must pay their share of social security contributions. These taxes are deductible by an employer for Argentine income tax purposes.

  • Other tax considerations

    Provincial taxes - Turnover tax

    Turnover tax or gross income tax is a tax collected by the provinces. The taxable event is the performance of commercial or industrial activity in the territory of the provinces. Tax rates can be 0.5% up to 6% in connection with the activity applied on the gross income. Some activities are charged with higher tax rates, such as online gambling which is taxed at a 15% tax rate in the Province of Buenos Aires.

    Every province has its own turnover tax. However, the turnover tax collected by each province are similar, although different tax treatments may result applicable for certain activities.

    Tax benefits

    For some activities there are special tax benefits at the federal level and provincial level.

    There are tax benefits for an investment in renewable energy, software production and services, investments in capital assets, biodiesel fuel and mining.

    The benefits may include partial or full exemptions, accelerated depreciation and drawback.

    VAT on the import of digital services

    Federal Government collects VAT on the importation of digital services. The taxpayer is the local resident unless the service provider has a fixed place in the Argentina. The tax rate is 21%.

    Double taxation treaties

    Argentina has signed tax treaties with Germany, Australia, Belgium, Bolivia, Brazil, Canada, Chile, Denmark, United Arab Emirates, Spain, Finland, France, Italy, Mexico, Norway, Netherlands, United Kingdom, Russia, Sweden and Switzerland (all in force), and Turkey, China, and Qatar (signed but not yet in force).

  • Key contacts
    Augusto Nicolás Mancinelli
    Augusto Nicolás Mancinelli
    Of Counsel DLA Piper (Argentina) [email protected] T +5411 41145500 View bio
    Raúl Sanguinetti
    Raúl Sanguinetti
    Tax Partner Baker Tilly Argentina [email protected] T +54 (11) 5352 2400 View bio

Key contacts

Argentina

Augusto Nicolás Mancinelli
Augusto Nicolás Mancinelli
Of Counsel DLA Piper (Argentina) [email protected] T +5411 41145500 View bio
Raúl Sanguinetti
Raúl Sanguinetti
Tax Partner Baker Tilly Argentina [email protected] T +54 (11) 5352 2400 View bio

Australia

Jock McCormack
Jock McCormack
Partner DLA Piper Australia [email protected] T +61 2 9286 8253 View bio

Austria

Dimitar Hristov
Dimitar Hristov
Partner DLA Piper Weiss-Tessbach Rechtsanwälte GmbH [email protected] T +43 1 531 78 1112 View bio

Belgium

Gregory Komlosi
Gregory Komlosi
Lead Lawyer DLA Piper UK LLP [email protected] T +32 02 500 1514 View bio
Philippe Hinnekens
Philippe Hinnekens
Partner DLA Piper UK LLP [email protected] T +32 (0) 2 500 1500 View bio

Brazil

Alex Jorge
Alex Jorge
Partner and Co-Head of Tax Campos Mello Advogados in cooperation with DLA Piper [email protected] T + 55 11 3077 3515
Humberto Marini
Humberto Marini
Partner and Co-Head of Tax Campos Mello Advogados in cooperation with DLA Piper [email protected] T + 55 21 2217 2011

Canada

Kevin Fritz
Kevin Fritz
Partner DLA Piper (Canada) LLP [email protected] T +1 416 941 5397 View bio

China

Daniel Chan
Daniel Chan
Partner DLA Piper Hong Kong [email protected] T +852 2103 0821 View bio

Colombia

Andres Gonzales
Andres Gonzales
Partner DLA Piper Martinez Beltran [email protected] T +57 1 3174720 View bio

Finland

Jaakko Klemettilä
Jaakko Klemettilä
Counsel Asianajotoimisto DLA Piper Finland Oy [email protected] T +358 9 4176 0435 View bio

France

Guillaume Valois
Guillaume Valois
Partner DLA Piper France LLP [email protected] T +33 (0)1 40 15 66 33 View bio

Germany

Dr. Konrad Rohde
Dr. Konrad Rohde
Partner DLA Piper UK LLP [email protected] T +49 69 271 33 340 View bio
Dr. Marie-Theres Rämer
Dr. Marie-Theres Rämer
Partner DLA Piper UK LLP [email protected] T +49 69 271 33 470 View bio

Hong Kong

Daniel Chan
Daniel Chan
Partner DLA Piper Hong Kong [email protected] T +852 2103 0821 View bio

India

Roderik Bouwman
Roderik Bouwman
Partner DLA Piper Nederland N.V. [email protected] T +31 (0)20 5419 894 View bio

Ireland

Roderik Bouwman
Roderik Bouwman
Partner DLA Piper Nederland N.V. [email protected] T +31 (0)20 5419 894 View bio
Maura Dineen
Maura Dineen
Partner DLA Piper Ireland [email protected] T + 353 1 436 5459 View bio

Israel

Roderik Bouwman
Roderik Bouwman
Partner DLA Piper Nederland N.V. [email protected] T +31 (0)20 5419 894 View bio
Eldar Ben-Ruby
Eldar Ben-Ruby
Partner Meitar Liquornik Geva Leshem Tal, Law Offices [email protected] T 972 3 6103615 View bio

Italy

Christian Montinari
Christian Montinari
Partner DLA Piper Studio Legale Tributario Associato [email protected] T +39 02 80 618 1 View bio
Antonio Tomassini
Antonio Tomassini
Partner DLA Piper Studio Legale Tributario Associato [email protected] T +39 02 80 618 1 View bio

Japan

Makiko Kawamura
Makiko Kawamura
Partner DLA Piper Tokyo Partnership [email protected] T +81 3 4550 2815 View bio

Luxembourg

Jacques Wantz
Jacques Wantz
Partner DLA Piper Luxembourg [email protected] T +352 26 29 04 2635 View bio

Mexico

Eduardo Gallástegui Armella
Eduardo Gallástegui Armella
Partner DLA Piper Mexico, S.C. [email protected] T +52 55.5261.1807 View bio
Abelardo Acosta
Abelardo Acosta
Law Clerk DLA Piper LLP (US) [email protected] T +1 858 677 1440

Netherlands

Roderik Bouwman
Roderik Bouwman
Partner DLA Piper Nederland N.V. [email protected] T +31 (0)20 5419 894 View bio
Daan Arends
Daan Arends
Partner DLA Piper Nederland N.V. [email protected] T +31 (0)20 5419 315 View bio

Norway

Preben Aas
Preben Aas
Partner Advokatfirma DLA Piper Norway DA [email protected] T +47 24 13 15 00 View bio

Poland

Bartosz Matusik
Bartosz Matusik
Partner DLA Piper Giziński Kycia sp.k. [email protected] T +48 22 540 74 66 View bio

Portugal

António Moura Portugal
António Moura Portugal
Partner DLA Piper ABBC [email protected] T +351 21 358 36 20 View bio

Romania

Tudor Nedelea
Tudor Nedelea
Partner, Local Head of Tax DLA Piper Dinu SCA [email protected] T +40 372 155 815 View bio

Russia

Ruslan Vasutin
Ruslan Vasutin
Partner DLA Piper Rus Limited [email protected] T +7 (812) 448 7200 View bio

Singapore

Boey Yoke Ping (Ms)
Boey Yoke Ping (Ms)
Partner Baker Tilly TFW LLP [email protected] T +65 6336 2828 View bio

South Africa

Andrew Lewis
Andrew Lewis
Director DLA Piper South Africa Services (Pty) Ltd [email protected] T +27 (0)11 302 0843 View bio

South Korea

Roderik Bouwman
Roderik Bouwman
Partner DLA Piper Nederland N.V. [email protected] T +31 (0)20 5419 894 View bio

Spain

Carlos Rodriguez
Carlos Rodriguez
Partner DLA Piper Spain S.L.U. [email protected] T +34 91 788 7309 View bio

Sweden

Erik Björkeson
Erik Björkeson
Partner Advokatfirma DLA Piper Sweden KB [email protected] T +46 8 701 78 89 View bio

Switzerland

Roderik Bouwman
Roderik Bouwman
Partner DLA Piper Nederland N.V. [email protected] T +31 (0)20 5419 894 View bio

Taiwan

Daniel Chan
Daniel Chan
Partner DLA Piper Hong Kong [email protected] T +852 2103 0821 View bio

Turkey

Maral Minasyan
Maral Minasyan
Kolcuoğlu Demirkan Koçaklı [email protected]

Ukraine

Illya Sverdlov
Illya Sverdlov
Partner DLA Piper Ukraine LLC [email protected] T +380 44 490 95 75 View bio

United Arab Emirates

Ton van Doremalen
Ton van Doremalen
Partner and Head of Tax, Middle East DLA Piper Middle East LLP [email protected] T +971 4438 6127 View bio

United Kingdom

Richard Woolich
Richard Woolich
Partner DLA Piper UK LLP [email protected] T +44 (0)20 7153 7336 View bio

United States

Sibel Owji
Sibel Owji
Partner DLA Piper LLP (US) [email protected] T +1 415 836 2563 View bio
Sang Kim
Sang Kim
Co-Chair, Global Tax Practice DLA Piper LLP (US) [email protected] T +1 650 833 2072 View bio

Zimbabwe

Jabulani Nhongo
Jabulani Nhongo
Manokore Attorneys [email protected]
Zinzi Mlambo
Zinzi Mlambo
Manokore Attorneys [email protected]