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  • Residence and basis for taxation

    In Argentina coexist 3 levels of taxation: federal, provincial (state) and municipal level.

    An entity is deemed resident for tax purposes when it is incorporated in Argentina under the laws of Argentina. An Argentine individual is considered a tax resident unless they lose their tax residence status by choice, obtain legal residence in other country or by fact, when the individual is outside the country for at least a 12-month 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 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 on income of Argentine source by way of income tax. The local resident paying to a foreign entity or individual is obliged to withhold the income tax at a 35-percent (or 15-percent for some gains as capital gains) 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 100 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 percent for the fiscal year 2020 and 25 percent as of the fiscal year 2021.

    In general, local individuals are taxed at a progressive tax rate that goes from 5 percent to 35 percent, 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-percent income tax rate if the title is issued in Argentine pesos, or 15-percent income tax rate if a share of a corporation is transferred, or if the title or sovereign bond is issued in Argentine pesos with an adjustment clause or in foreign currency except an exemption results applicable.
    • The transfer of real estate by a local individual is taxed at a rate of 1 percent of income tax.  

    Foreign

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

    • Transfer of sovereign bonds or any title (public or private) is taxed at a 5-percent income tax rate if the title is issued in Argentine pesos, or 15-percent income tax rate if the title is issued in Argentine pesos with adjustment clause, or in foreign currency except an exemption results applicable. The transfer of shares of a local corporation is taxed at a 15-percent income tax rate. This assumes 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-percent tax rate for the fiscal year 2020 and 13 percent as of the fiscal year 2021.
    • 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 the federal, state and municipal level depending on their activities. Tax returns must be filled on a monthly or yearly basis 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 on indirect transfer

    Income tax on 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. 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-percent tax rate for the fiscal year 2020 and 13 percent as of the fiscal year 2021.

    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 5-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 an 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 percent 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 percent 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 percent 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 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 7 percent for the fiscal year 2020 and 13 percent as of FY 2021.

    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 percent up to 5 percent 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 province. The taxable event is the performance of commercial or industrial activity in the territory of the province. Tax rates can be 0.5 percent up to 6 percent 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-percent tax rate in the Province of Buenos Aires.

    In some provinces, turnover tax is also applicable to the import of digital services.

    Every province has its own turnover tax. However, the turnover tax collected by each province is similar, although different tax treatments may be 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

    The federal government collects VAT on the importation of digital B2C services. The taxpayer is the local resident unless the service provider has a fixed place in the Argentina. The tax rate is 21 percent.

    PAIS Tax

    The PAIS tax is applicable to the purchase of foreign currency by resident individuals. It is also applicable when a local individual pays for services to a foreign entity using their credit/debit cards. The tax rate is 30 percent, or 8 percent when the service being paid is already taxed with the VAT on digital services.

    Double taxation treaties

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

  • Key contacts
    Augusto Nicolás Mancinelli
    Augusto Nicolás Mancinelli
    Partner DLA Piper (Argentina) [email protected] T +5411 41145500 View bio

Key contacts

Argentina

Augusto Nicolás Mancinelli
Augusto Nicolás Mancinelli
Partner DLA Piper (Argentina) [email protected] T +5411 41145500 View bio

Australia

Jock McCormack
Jock McCormack
Head of Tax, Australia DLA Piper Australia [email protected] T +61 2 9286 8253 View bio

Austria

Dimitar Hristov
Dimitar Hristov
Partner DLA Piper Austria [email protected] T +43 1 531 78 1112 View bio

Belgium

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

Chile

Rodrigo Alvarez Aravena
Rodrigo Alvarez Aravena
Partner DLA Piper [email protected] T +56 2 2798 2603 View bio
German Vargas Domínguez
German Vargas Domínguez
Senior Associate DLA Piper [email protected] T +5 62 2798 2686 View bio

China

Peng Tao
Peng Tao
Partner DLA Piper [email protected] T +1 212 335 4875 View bio

Colombia

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

Finland

Antti Paloniemi
Antti Paloniemi
Partner DLA Piper [email protected] T +358 40 586 1051

France

Fanny Combourieu
Fanny Combourieu
Partner DLA Piper [email protected] T +33 1 40 15 25 23 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, SAR

Anderson Lam
Anderson Lam
Partner DLA Piper Hong Kong [email protected] T +852 2103 0722 View bio

Hungary

Levente Torma
Levente Torma
Counsel DLA Piper Hungary [email protected] T +36 1 510 1100 View bio

India

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

Ireland

Maura Dineen
Maura Dineen
Partner DLA Piper Ireland [email protected] T + 353 1 436 5459 View bio
Sean Murray
Sean Murray
Head of Financial Services Tax, Ireland DLA Piper Ireland [email protected] T +353 1 436 5450 View bio

Israel

Roderik Bouwman
Roderik Bouwman
Partner DLA Piper Netherlands [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

Keitaro Uzawa
Keitaro Uzawa
Associate DLA Piper [email protected] T +81 3 4550 2833 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 [email protected] T +52 55.5261.1807 View bio
Calafia Franco Jaramillo
Calafia Franco Jaramillo
Foreign Legal Consultation DLA Piper Mexico [email protected] T +1 212 335 4823 View bio

Mozambique

Eduardo da Costa Calú
Eduardo da Costa Calú
Managing Partner DLA Piper Mozambique [email protected] T +258 21 241400

Netherlands

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

Norway

Jonas Aartun
Jonas Aartun
Partner DLA Piper [email protected] T +47 95 07 44 47

Peru

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 DLA Piper Tax SRL [email protected]iper.com T +40 372 155 815 View bio

Russia

Singapore

Barbara Voskamp
Barbara Voskamp
Partner DLA Piper [email protected] T +65 65126034 View bio
Anne Klaassen
Anne Klaassen
Associate/Tax Consultant DLA Piper [email protected] T +65 6512 6038 View bio

South Africa

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

South Korea

Roderik Bouwman
Roderik Bouwman
Partner DLA Piper Netherlands [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
Miguel Baz
Miguel Baz
Partner DLA Piper [email protected] T +34 91 788 7307 View bio
César Salagaray
César Salagaray
Partner DLA Piper [email protected] T +34 682 03 9540 View bio

Sweden

Erik Björkeson
Erik Björkeson
Partner DLA Piper Sweden [email protected] T +46 73 518 81 04 View bio

Switzerland

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

Taiwan, China

Daniel Chan
Daniel Chan
Partner DLA Piper Hong Kong [email protected] T +852 2103 0821 View bio
Peng Tao
Peng Tao
Partner DLA Piper [email protected] T +1 212 335 4875 View bio

Turkey

Maral Minasyan
Maral Minasyan
Kolcuoğlu Demirkan Koçaklı Attorneys at Law [email protected]

Ukraine

United Arab Emirates

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

United Kingdom

Mark Burgess
Mark Burgess
Partner DLA Piper UK LLP [email protected] T +44 (0)121 262 5972 View bio
Ben Brown
Ben Brown
UK Head of Tax DLA Piper UK LLP [email protected] T +44 (0)20 7796 6204 View bio
Matt Davies
Matt Davies
Partner DLA Piper UK LLP [email protected] T +44 (0)207 796 6423

United States

Anil Kalia
Anil Kalia
Partner DLA Piper LLP (US) [email protected] T +1 650 833 2026 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]
Tatenda Tendayi
Tatenda Tendayi
Manokore Attorneys [email protected]