Argentina is a rapidly expanding market in Latin America that presents numerous business opportunities. Investors are increasingly looking to invest in the region and many are choosing to establish companies in Argentina. However, once a company is formed, it is crucial to stay updated with all accounting and tax obligations to ensure compliance with local authorities. Below, we provide more information on the Accounting and Tax Requirements in Argentina.
When conducting business in Argentina, it is vital to understand the Accounting and Tax Requirements in the country. Taxes in Argentina are collected at the federal, provincial, and municipal levels. The Federal Administration of Public Revenue (AFIP) primarily collects federal taxes. 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, and the System of Withholding Tax Control (SICORE). Provincial taxes are mainly collected by AGIP and ARBA, with the main provincial tax being the Gross Income Tax.
Argentina has different tax rates depending on the type of tax. The corporate income tax rate varies based on the accumulated taxable net income, with different rates applied to different income brackets. The value-added tax (IVA) is set at a standard rate of 21%. The Gross Income Tax (Ingresos Brutos) ranges from 3% to 7.50%.
In terms of taxation, Argentina distinguishes between residents and non-residents. Residents, whether individuals or legal entities, are subject to tax on their worldwide income, including income earned domestically and abroad. They may receive tax credits for similar taxes paid on their foreign activities. Non-residents, on the other hand, are only subject to tax on their Argentine-source income. Non-resident taxes are typically collected through a final withholding tax.
Argentina has also signed agreements to avoid double taxation with several countries. These agreements aim to prevent double taxation between residents of different jurisdictions and reduce the tax burden for residents in these jurisdictions. Partner countries include 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.
To understand accounting and taxation in Argentina, there are common questions and doubts that arise. These include inquiries about the corporate tax rate, how companies are taxed, the equivalent of the IRS in Argentina, accounting regulations, the equivalent of a CPA in Argentina, and the adoption of IFRS (International Financial Reporting Standards).
At Biz Latin Hub, we offer market entry support and a range of integrated back-office services tailored to the specific needs of our clients. Our services include accounting and taxation, company formation, due diligence, legal services, and hiring and PEO. With our presence in 16 markets across Latin America and the Caribbean, we are well-equipped to support cross-border operations and facilitate market entry in multiple jurisdictions. We prioritize compliance with regulations in all the countries where we operate, ensuring that your company adheres to employment laws and regulations in Argentina. Contact us today to learn more about how we can assist you in doing business in Argentina.
