Argentina - Tax Guide for Freelance Contractors
Welcome to our guide to Argentinian Taxation. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, Argentina.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in Argentina. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in Argentina.
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Tax residents in Argentina: are liable to pay Argentinian tax on their worldwide income,
Tax non-residents in Argentina: are liable to pay tax only on their Argentinian source-income
Individuals will be regarded as tax residents:
- if they are Argentine natural persons, native or naturalized, except for those who lost the resident status,
- as soon as they receive either their residency or work permit,
- foreign individuals who obtained their permanent resident status in the country or who, without having done so, have legally been in the country for a twelve month period by means of temporary authorizations. In this regard, temporary absences of up to 90 (working or non-working) days within every period of 12 months, shall not disrupt the continuity of such permanence in the country,
- likewise, individuals who failed to obtain the Argentine permanent resident status and whose permanence in the country is due to reasons that do not imply an intention of habitual permanence (such as working purposes for a maximum of a 5-year period; foreigners who stay in Argentina with temporary visas for studying or researching etc, shall be able to account for the underlying reasons. The above mentioned communication shall be submitted before the Argentinean A.F.I.P – Administración Federal de Ingresos Públicos (Federal Administration of Public Revenues) after 30 days of the fulfillment of the term of 12 months of stay in the country.
Taxable income includes:
- benefits in kind,
- retirement pensions,
- retirement compensation.
Certain deductions are permissible for 2011 including:
- fixed deductions such as non taxable minimum,
- special tax fee amount,
- dependant allowance,
- spouse allowance,
- deductions and allowances are subject to certain restrictions (e.g. medical expenses, specific donations, mortgage interest, retirement annuities),
- social security contributions.
Income tax rates for 2011:
- 9.00% up to ARS 10’000,
- 14.00% from ARS 10’001 up to ARS 20’000,
- 19.00% from ARS 20’001 up to ARS 30’000,
- 23.00% from ARS 30’001 up to ARS 60’000,
- 27.00% from ARS 60’001 up to ARS 90’000,
- 31.00% from ARS 90’001 up to ARS 120’000,
- 35.00% above ARS 120’000
Individuals that are present in Argentina for less than six months (183 days) in any 12-month period and derive employment income must pay tax on such income at an effective flat rate of 24.5%. The applicable exception are payments to artistes hired by any degree of the Argentinean government or other eligible institutions in order to perform services in the country for up to 2 months; in this case the rate would be 12,25%.
Income Tax shall be payable on an annual basis with five advanced payments (bi-monthly). Expenses incurred in generating such income may be deducted from gross income.
Joint income Tax Returns are not permitted; each individual must fill a return separately.
Local employees are subject to withholding tax at source, for which the employer is responsible as a withholding agent.
Capital gains are exempt of income tax payment, nevertheless retirement pensions, retirement compensation and benefits in kind are taxable.
In April or May, or prior to the foreigner's departure from Argentina.