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The Republic of Argentina is located in South America, approximately between latitudes 23°S (Tropic of Capricorn) and 55°S (Cape Horn). The Andes separates the country from Chile in the west, and it borders Bolivia and Paraguay in the north and Brazil, Uruguay, and the South Atlantic Ocean to the east.




CIT = Corporate Income Tax 

SSC = Social Security Contribution  (Employee + Employer)


During the period 2019-2023 Alberto Fernández was the president of the country. His government faces a Pandemic, a War and a very deep drought. Although the economy expanded in 2021 and 2022, a number of macroeconomic imbalances continued to have an impact on the country. In this sense, by the end of Alberto Fernández's government period, the inflation reached the higher levels since the ‘90s, the exchange restrictions were highly increased, the exchange gap reached a record near 200% and the poverty levels finished at 40.1%.

In this challenging panorama, Javier Milei, a political outsider, assumed the presidency in December 2023, which confirmed a social discontent regarding the country's situation. In the first days of government, the new administration carried out measures that included a fiscal adjustment with the aim of reaching balance in 2024 and a devaluation of the official exchange rate of 54%. The aforementioned depreciation, although it reduced the exchange gap, had an impact on the inflation levels. Parallel to this, the National Executive Branch issued an Emergency Decree (DNU) and summoned the National Congress for extraordinary sessions to discuss a bill including comprehensive deregulations and the repeal of laws and sectoral economic regimes. Despite these measures, the national economic context remains uncertain and challenging given the imbalances that take place in the country.

Image by Henrique Sosa



Taxation of individuals

Individuals resident in Argentina are taxable on worldwide income and may obtain a foreign tax credit for taxes paid on income from foreign sources.

Non-residents and foreign beneficiaries are only taxable on their Argentine-source income.

For Fiscal year 2024, the government established by Law a cedular regime which will be applied on the highest incomes, understood as those that exceed the equivalent of the sum equivalent to 180 annual minimum, vital and mobile salary (SMVM), as a non-taxable minimum.  Under this scenario, employees, retirees and pensioners (no applicable to directors) must pay taxes only when their gross monthly salary is greater than 15 current minimum, vital and mobile salaries (SMVM) at the time of tax determination. The measure will apply from the 2024 fiscal period. In addition a progressive scale is incorporated, whose rates will be established between 27% and 35%, and the value of the Minimum, vital and Mobile salary which will be updated twice a year, in January and July. 

Tax rates go from 5% to 35%.

Gross Income tax

Gross income tax is a provincial tax applicable to self-employed individuals on gross earnings. The average tax rate is 4% in the Federal Capital (the City of Buenos Aires), and similar rates are applicable in the different provinces. Professionals who do not perform their activity in the form of a company are exempt from the gross income tax in the City of Buenos Aires. The tax is paid by filing monthly tax returns.

Foreign beneficiary tax

Foreign beneficiaries working temporarily in Argentina for no more than six months during the year, who earn income through either the visual or performing arts or other profession, are subject to income tax on these earnings at the rate of 24.5% (35% on assumed profit of 70% of gross income) to be withheld by the local payer. Other tax rates could apply depending on the type of income to be paid.

Social Contribution  

The employer Social Security Tax is payable on the employee’s total monthly compensation and is not subject to any cap amount. The total employer contribution is 26.4% for companies mainly engaged in the provision of services or trade, provided their annual sales exceed the amount established by the regulation that is updated annually (current amount are ARS 2,625,990,000 for services and ARS 10,310,100,000 for trade), and 24% for all other companies.
Argentine employers are exempt from paying social security contributions for the first ARS 7,003.68 per month per employee.
The employee social security withholdings, which include pension fund, healthcare, and social services, are payable on the monthly salary, up to a monthly cap of ARS 1,157,112.83 (as of December 1, 2023), except for June and December, where the cap is increased by 50% due to the 13th month salary. This salary cap is index-adjusted in March, June, September, and December of each year.
The total employee Social Security Tax rate is 17%, which consists of contributions of 11% to the pension fund, 3% to healthcare, and 3% to social services.

Taxation of legal persons

As a consequence of a recent tax reform, the CIT rate for fiscal years beginning on or after 1 January 2021 has been set as follows (indexed as of 2023):

  • Taxable income from ARS 0 to ARS 14,301,209.21: 25%.

  • Taxable income from more than ARS 14,301,209.21 to ARS 143,012,092.08: ARS 3,575,302.30 + 30% on the amount that exceeds ARS 14,301,209.21.

  • Taxable income from more than ARS 143,012,092.08: ARS 42,188,567.16 + 35% on the amount that exceeds ARS 143,012,092.08.

Legal entities resident in Argentina are subject to tax on Argentine and foreign-source income. Resident legal entities are able to claim any similar taxes actually paid abroad on foreign-source income as a tax credit. The tax rate applies on net income determined on a worldwide basis.

The 2021 tax reform also introduced a withholding tax (WHT) on dividend distributions and branch profit remittances at a rate of 7%.

The 2017 tax reform abolished the so-called ‘equalisation tax’ for profits generated in taxable years starting on or after 1 January 2018. The equalisation tax was a WHT levied at a 35% rate on dividend distributions in excess of tax earnings. The equalisation tax, however, remains applicable on dividend and branch profit distributions made out of earnings accumulated prior to 1 January 2018 and which were in excess of tax earnings as of the year-end prior to the relevant distribution.

Argentine-source income (e.g. royalties, interests) received by foreign entities is subject to WHT in full and final settlement at source.

Value Added Tax

VAT is assessable on the sales value of products (e.g. raw materials, produce, finished or partly finished merchandise) with few exemptions, most services (e.g. construction, utilities, professional and personal services not derived from employment, rental), and on import of goods and services. The VAT rate is 21%, although certain specific items are subject to a 27% or 10.5% rate. VAT is payable by filing monthly tax returns.

The increased rate of 27% applies to ‘utilities services’ (e.g. telecommunications, household gas, running water, sewerage, and energy) not rendered to dwelling-purposes real estate.

A reduced rate of 10.5% applies to certain transactions, including (but not limited to) the following:

  • Construction of housing.

  • Interest and other costs on personal loans granted to final consumers by financial institutions.

  • Sales and imports of living bovine animals.

  • Supply of publicity and advertising in some specific cases.

  • Any passenger transportation operating inside the country when the distance does not exceed 100 km.

  • Medical assistance in some specific cases.

  • Certain capital goods, depending on the Customs Duty Code.

VAT paid on purchases, final imports, and rental of automobiles not considered as inventory cannot be computed by the purchaser as a VAT credit. The same tax treatment applies to other services, such as those provided by restaurants, hotels, and garages.

As a result of the 2017 tax reform, VAT legislation has also been amended to include ‘digital transactions' (e.g. digital services, hosting, on-line technical support, software services, Internet services) provided from abroad as a taxable event. Hence, these types of services are now subject to VAT at a 21% rate if they are supplied by a non-resident entity to an Argentine customer, provided that they are effectively used in Argentina.

VAT exemptions

Among others, the following transactions are exempt from VAT:

  • Sales of books, ordinary natural water, common bread, milk, medicine, postage stamps, aircraft used in commercial activities and for defence or internal safety, and ships or boats acquired by the national government.

  • Supply of certain services, such as services rendered by the government (national, provincial, or local) or by public institutions; school or university education provided by private institutions subject to public educational programmes; cultural services supplied by religious institutions; hospital and medical care and related activities; transportation services for sick or injured persons in vehicles specially designed for the purpose; tickets for theatre, cinema, musical shows, and sport events; the production and distribution of motion picture films; local transport of passengers (e.g. taxis, buses) up to 100 km; and international transportation.

  • Rental of real estate for housing purposes.

VAT exemption on importation

The following import transactions are also exempted from VAT:

  • Final importation of goods qualifying for exemption from customs duties under special regimes for tourists, scientists and technicians, diplomatic agents, etc.

  • Final importation of samples and parcels exempted from customs duties.

VAT export reimbursement regime

Exports of goods and services are treated as zero-rated transactions. Nevertheless, input VAT related to these transactions can either be used as a credit against output VAT or refunded pursuant to a special procedure.

Services rendered within the country shall be deemed to be exports if they are effectively applied or economically utilised outside the country.

Exporters must file an export return with the tax authorities, reporting the VAT receivables related to their exports to be reimbursed on VAT paid in relation to the export operations. A report certified by a public accountant with respect to the value, registrations, and other characteristics related to the refund must be attached to the export return.

The tax credit related to exports and other taxable activities can only be refunded in proportion to the exports, and can be fully refunded to a cap of 21% of the freight on board (FOB) value of the exported products.

There is no specific method stated in the legislation for allocating the tax credit related to exports, but taxpayers are able to use any methods of calculation that would be suitable to their business model. This calculation has to be approved by the tax authorities.

Finally, it is important to highlight that the tax authorities have to approve the tax credit to be refunded.

VAT reimbursement on investments in infrastructure projects and acquisition of capital goods

The 2017 tax reform established an expedient VAT recovery mechanism for VAT credit balances on certain infrastructure and investments in capital goods, to the extent that companies have not been able to recover the VAT within six months.

Electronic invoicing

All VAT-registered taxpayers are compelled to use electronic invoices. In order to apply for this regime, an authorisation must be obtained from the tax authorities. As a result, the tax authorities will assign an Electronic Authorization Code (Código de Autorización Electrónico or CAE), which is included in every issued electronic invoice.


Our office in Buenos Aires can count on the support of a firm of Accountants and Auditors founded in 1998 made up of 2 Partners as well as a staff of 10 people who work daily in the areas of auditing, payroll processing, accounting, tax assistance and compliance.  

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