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Income Tax

Income Tax

Taxation of international executives


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Tax returns and compliance

When are tax returns due? That is, what is the tax return due date?

Income tax returns

The deadline for filing individual income tax returns and paying any annual tax due depends on the final digit of the taxpayer’s tax registration number, and it usually operates by mid-June.

Informative income tax returns

Employees who are not registered with the Tax Authorities and whose only source of income derives from their salary, which has been subject to withholding at source, have to file an informative annual income tax return when their annual gross income exceeds 1,500,000 (amount for FY 2019. This amount may change for 2020). Argentine peso (ARS). The deadline for filing such tax return is 30 June (or the first business day after).

What is the tax year-end?

31 December.

What are the compliance requirements for tax returns in Argentina?

Employees do not have to file tax returns unless:

  • a refund is due to them or they have a deficit, which must be paid
  • the employee is additionally a permanent Member of the board (irrespective of whether they collect fees or not)
  • they have income deriving from sources other than remuneration
  • their annual gross income exceeds ARS1,500,000 (in which case, an informative Income tax return must be filed).

Tax rates

What are the current income tax rates for residents and non-residents in Argentina?

Both residents and non-residents located in Argentina on a permanent basis (hereinafter NRPP) are subject to the same regular income tax rates.

Income tax table for 2020

Taxable income Tax base Rate on excess On the excess of
From ARS To ARS ARS Percent ARS
- 47,669.16 - 5% 0
47,669.16 95,338.32 2,383.46 9% 47,669.16
95,338.32 143,007.48 6,673.68 12% 95,338.32
143,007.48 190,676.65 12,393.98 15% 143,007.48
190,676.65 286,014.96 19,544.36 19% 190,676.65
286,014.96 381,353.28 37,658.64 23% 286,014.96
381,353.28 572,029.92 59,586.45 27% 381,353.28
        572,029.92     762,706.57         111,069.14               31%   572,029.92
  762,706.57       -    170,178.90               35%       762,706.57

Expatriates working in Argentina on a regular basis for less than 6 months (Foreign Beneficiaries) are taxed at a rate of 35 percent of their imputed Argentine source income, which is calculated at 70 percent of the gross amount received, making an effective tax rate of 24.5 percent for payroll compensation-related income. This tax is implemented by means of withholding, as a sole and final tax.

Individuals residing in the country/jurisdiction for more than 6 months will use the scaled rate table system mentioned above.

Residency rules

For the purposes of taxation, how is an individual defined as a resident of Argentina?

An individual who obtains a permanent residence from an immigration viewpoint or stays in Argentina for more than 12 consecutive months is considered a resident of Argentina for tax purposes.

The acquisition of the capacity as resident shall be effective as from the first day of the second month immediately following that in which some of the requirements mentioned above had been met.

However, those individuals who hold a temporary visa and whose presence in Argentina is based on the grounds of employment which is duly accredited and which requires their permanency in Argentina for a period not exceeding 5 years are not considered Argentine residents, but non-residents located in Argentina on a permanent basis (NRPP). NRPPs are only subject to taxation on Argentine-source income, but for the purpose of tax calculation, they shall be governed by Income Tax Law provisions applicable to Argentine residents.
Argentine residence for tax purposes is tied to residence for immigration purposes. This is an important consideration as residents are taxed on a worldwide basis.

Is there, a de minimus number of days rule when it comes to residency start and end date? For example, a taxpayer can’t come back to the host country/jurisdiction for more than 10 days after their assignment is over and they repatriate.

In the case of foreign natural persons, who stay in Argentina with temporary authorizations granted pursuant to migration regulations during a 12-month period, it should be understood that temporary presences abroad that, in a continuous or intermittent manner, does not exceed 90 days during every 12-month period, does not interrupt the continuous stay in Argentina.

What if the assignee enters the country/jurisdiction before their assignment begins?

The individual would be subject to Argentine income tax when they enter the country/jurisdiction after obtaining their temporary visa. As explained above, the way of being subject to income would vary depending on the time the individual spends in Argentina. Working without the proper visa is prohibited.

Termination of residency

Are there any tax compliance requirements when leaving Argentina?

Tax liability ceases when the status of resident is lost and there is no longer any income received from Argentine sources. Generally, individuals who fall within the status of fiscal residents in Argentina (i.e.: subject to worldwide income) lose their residence status when they acquire permanent residence in a foreign state -from a migratory standpoint- or remain in another country/jurisdiction for a period exceeding 12 months or more (the temporary presence within Argentina that, in a continuous or intermittent manner, does not exceed 90 days during every 12-month period, does not interrupt the continuous stay abroad).The loss of the capacity as resident shall be effective as from the first day of the second month immediately following that in which some of the requirements mentioned above had been met.

If the individual is registered under income tax, they will have to file income tax returns as long as they are deemed as a fiscal resident. The person should also apply for deregistration after filing said returns.

Non-residents (Foreign Beneficiaries) do not file annual income tax returns. In the event they receive income of Argentine source, such income shall be subject to tax through a withholding at source.

What if the assignee comes back for a trip after residency has terminated?

The period of time for which the individual will be working along with their residence condition must be considered in order to determine the income tax treatment to be applied.

Communication between immigration and taxation authorities

Do the immigration authorities in Argentina provide information to the local taxation authorities regarding when a person enters or leaves Argentina?

There is no formal procedure in place but its implementation could be possible.

Filing requirements

Will an assignee have a filing requirement in the host country/jurisdiction after they leave the country/jurisdiction and repatriate?

If an individual who qualifies as a NRPP in Argentina is registered under income tax and leaves the country/jurisdiction, they should file a final income tax return and apply for deregistration, if applicable.

If the individual qualifies as a resident for income tax purposes, they should file an annual income tax return until the residence condition is lost. Upon losing such condition, they must apply for deregistration.

Economic employer approach

Do the taxation authorities in Argentina adopt the economic employer approach2 to interpreting Article 15 of the Organization for Economic Co-operation and Development (OECD) treaty? If no, are the taxation authorities in Argentina considering the adoption of this interpretation of economic employer in the future?

Argentina adopts the economic employer approach to interpreting OECD treaty. The analysis of domestic regulations also leads to a similar line of reasoning.

In light of the above, it could be understood that no tax will be paid to the extent that:

  • the individual remains less than 183 days in a fiscal year
  • no payments are made by an Argentine entity
  • no costs are borne by a permanent establishment in Argentina.

De minimus number of days

Are there a de minimus number of days3 before the local taxation authorities will apply the economic employer approach? If yes, what is the de minimus number of days?

We consider that each case should be evaluated individually.

Types of taxable compensation

What categories are subject to income tax in general situations?

As a rule, it can be stated that all types of compensation and benefits received by an employee for services rendered in Argentina constitute taxable income, regardless of where they are paid. Typical items of an expatriate compensation package, which are fully taxable, include:

  • reimbursements of foreign and/or home country/jurisdiction taxes school tuition reimbursements
  • cost-of-living allowances
  • expatriate premiums
  • housing allowances and the value of housing provided directly by the employer
  • benefits-in-kind are generally considered part of the taxable compensation
  • employer’s contributions to a foreign pension plan at the time of collection
  • medical insurance premiums.

Intra-group statutory directors

Will a non-resident of Argentina who, as part of their employment within a group company, is also appointed as a statutory director (i.e. member of the Board of Directors in a group company situated in Argentina) trigger a personal tax liability in Argentina, even though no separate director's fee/remuneration is paid for their duties as a board member?

Yes it will, the director will have to register as an Income Taxpayer and file an income tax return. Besides, all directors needs to pay social contributions under the self-employed workers regime (“Régimen Nacional de Trabajadores Autónomos”).

a) Will the taxation be triggered irrespective of whether or not the board member is physically present at the board meetings in Argentina?

Yes, but only If the director is living in Argentina and has been appointed as a statutory director. If the director is living abroad, it is not necessary to register them as an Income taxpayer and it is also not necessary to file a tax return (if a director fee payments is made, the company should act as a withholding agent).

b) Will the answer be different if the cost directly or indirectly is charged to/allocated to the company situated in Argentina (i.e. as a general management fee where the duties rendered as a board member is included)?

If the director is also appointed as a statutory director, the answer will not be different. If they are not appointed as a statutory director, further analysis needs to be made.

c) In the case that a tax liability is triggered, how will the taxable income be determined?

In this case (no separate director's fee is paid besides the remuneration) the employer will act as a withholding agent (same as a regular employee).

If the company also decides to pay separates fees to the director, the taxable income will be determined in the income tax return (the company will also act as a withholding agent but with a flat rate, and it will be taken as a credit in the income tax return).

Tax-exempt income

Are there any areas of income that are exempt from taxation in Argentina? If so, please provide a general definition of these areas.

In general, most compensation items are taxable for Income Tax purposes.

Certain employer provided housing allowances (employer’s contribution to rent)


Certain employer provided housing allowances (cost of utilities)


Living away from home allowance (LAFHA)


Certain employer provided tax reimbursements

No, except for the case in which the tax reimbursement relates to a prior assignment abroad and the individual is deemed non-resident in Argentina.

Certain employer provided relocation reimbursements

No. However, actual moving expenses reimbursed by vouchers are not considered as compensation. On the contrary, if the employee receives a lump sum, this amount should be taxable.

Home leave

Only if the trip could be considered a business trip. This exception only applies to the assignee, not to the family members that could travel with them.

Certain employer provided education costs

As long as they are necessary for the assignee's development in the Argentine company. Dependent's education is always taxable in Argentina.

Certain bonus payments

No, except for the case in which the bonus relates to a prior assignment abroad and the individual is deemed non-resident in Argentina.

Certain interest subsidies


Certain auto allowances


Health Insurance


Expatriate concessions

Are there any concessions made for expatriates in Argentina?

Expatriates who are living in Argentina for less than 6 months and are working on a regular basis are subject to a withholding tax of 24.5 percent (Foreign Beneficiaries Regime).

If they come to the country/jurisdiction for a period longer than 6 months and shorter than 5 years, with a temporary visa, expatriates are considered nonresidents with permanent presence (NRPP) and thus subject to income tax only on Argentine-sourced income.

Salary earned from working abroad

Is salary earned from working abroad taxed in Argentina? If so, how?

Remunerations from overseas are taxable if received by an Argentinean resident.
Nonresidents are only taxed on Argentine-sourced compensation (income derived from work performed in Argentina, irrespective of the place in which it is collected).

Taxation of investment income and capital gains

Are investment income and capital gains taxed in Argentina? If so, how?

Residents are taxable on their worldwide investment income.

Please note that Law 26,893 set forth a tax reform on capital gains and dividends, effective from September 2013.

As a result of such reform, the net gain resulting from the sale, exchange, barter or disposition of shares, quotas, titles, bonds and other values is taxed at a 15 percent rate (there is an exemption for resident individuals that applies only to shares, titles, etc. that are traded through exchange markets authorized by the Argentine Securities and Exchange Commission).

Other capital gains (argentine investments) since the tax reform effective from January 2018 (Law 27.430) are now taxed at a 5 percent rate if the investment is in ARS or 15 percent rate if the investments are in foreign currency or with an adjustment clause.

Notwithstanding the abovementioned, please note that non-tax residents are not subject to tax on foreign-source income.

Dividends, interest, and rental income

Dividends distributed by foreign companies to residents, interests and rental income are taxable at regular income tax rates.

Notwithstanding the abovementioned, please note that non-tax residents are not subject to tax on foreign-source income.

Note that law 27.260 has repealed the 10 percent tax withholding on dividend distributions by domestic entities to both national and foreign shareholders. But the Law 27.430 (in force since January 2018, includes a 7 percent/ tax withholding on dividend distributions until 31 December, 2019. Since 2020 the tax withholding will be 13 percent.

Gains from stock option exercises

Gains from stock option exercises are taxable at exercise based on the difference between the stock fair market value and the strike price set in the plan and paid.

Residency status Taxable at:
  Grant Vesting  Exercise 
Resident N Y   
Non-resident N Y* 

* Based on the time of permanence in Argentina from grant to vesting.

Foreign exchange gains and losses

Not applicable.

Principal residence gains and losses

Not taxable.

Capital losses

Tax treatment of capital losses should be analyzed in each specific case.

Personal use items

The specific case should be evaluated. 


Gifts are usually non-taxable, but each specific case should be evaluated.

Additional capital gains tax (CGT) issues and exceptions

Are there additional capital gains tax (CGT) issues in Argentina? If so, please discuss?

No, there are not. Please refer to our previous comments on capital gains taxation.

Are there capital gains tax exceptions in Argentina? If so, please discuss?

Please refer to our previous comments on capital gains taxation.

Pre-CGT assets

Not applicable.

Deemed disposal and acquisition

Not applicable.

General deductions from income

What are the general deductions from income allowed in Argentina?

General Deductions

Among others, the following deductions are allowed (subject to strict limitations and conditions): social security contributions, voluntary medical care, certain gifts, life insurance premiums, burial expenses, interest related to mortgage loans, doctors, paramedical and health assistants’ fees, amounts paid for rents destined to the taxpayer’s home, etc.

Personal Deductions

Individuals living more than 6 months in Argentina can claim the following personal deductions:

  • non-taxable income: ARS123,861.17
  • spouse: * ARS115,471.38
  • per dependent child: *ARS58,232.65

* If the spouse or dependent child have been living in Argentina for more than 6 months in the year, and their income is not higher than the non-taxable income.

A special deduction for compensation for services rendered is available. The amount that may be deducted is ARS123,861.17 increased to ARS594,533.62 for employees.
Employees residing in certain specific provinces are able to compute higher deduction amounts (22 percent higher).

Tax reimbursement methods

What are the tax reimbursement methods generally used by employers in Argentina?

Current year gross up.

Calculation of estimates/ prepayments/ withholding

How are estimates/prepayments/withholding of tax handled in Argentina? For example, Pay- As-You-Earn (PAYE), Pay-As-You-Go (PAYG), and so on.

Pay-as-you-earn (PAYE) withholding

Withholdings are calculated and made by employer on a monthly basis.

Advance payments

Individuals who receive income derived from sources other than remunerations must make 5 advance payments.

The Tax Authorities requires payment of current year’s income tax liability during the year, before it is calculated through the annual return. These payments are made in five successive installments, equivalent to 20 percent, respectively, of the total income tax determined for the previous taxable year, less any amount withheld except those made as definitive payments.

The due dates for income tax prepayments are August, October, December corresponding to the fiscal year, February and April of the following year.

Relief for foreign taxes

Is there any Relief for Foreign Taxes in Argentina? For example, a foreign tax credit (FTC) system, double taxation treaties, and so on?

Foreign tax credits are available where Argentina taxes foreign-sourced income. When an expatriate is from a non-treaty country/jurisdiction, Argentina will generally allow unilateral relief for foreign taxes payable, there being cap amounts applicable to such credits.

Additionally, Argentina has entered into several double taxation agreements that provide for the exclusion of the foreign sourced income from the taxable base or tax credits.

General tax credits

What are the general tax credits that may be claimed in your country/jurisdiction? Please list below.

  • National Income tax paid in the foreign country/jurisdiction that should be analogous to the Argentine income tax or the one provided for in the relevant tax treaty.
  • Certain percentage of the local tax on bank accounts is creditable against Argentine income tax.
  • Reverse withholdings applicable to certain services abroad hired through local travel agencies and transportation services to foreign locations as long as they are paid in cash, are also creditable against the final tax liability.

Sample tax calculation

The calculation is based on the assumption that the assignee is a married taxpayer, carrying out their tasks only in Argentina, with two children. It is also assumed that their 3-year assignment begins on 1 January 2018 and ends on 31 December 2020. The taxpayer’s base salary is 100,000 US dollars (USD) and the calculation covers 3 years.








Salary 100,000 100,000 100,000
Bonus 20,000 20,000 20,000
Cost-of-living allowance 10,000 10,000 10,000
Housing allowance 12,000 12,000 12,000
Company car 6,000 6,000 6,000
Moving expense reimbursement 20,000 0 0
Home leave 5,000 0 0
Education allowance 3,000 3,000 3,000
Interest income from non-local sources 6,000 6,000 6,000

Other assumptions

  • All income is attributable to local sources.
  • Bonuses are paid at the end of each tax year, and accrue evenly throughout the year.
  • Interest income is not remitted to Argentina.
  • The company car is used for business (50 percent) and private purposes (50 percent) and its historical cost is equal to USD50,000.
  • From a tax perspective, the employee is deemed as a non-resident with permanent presence throughout the assignment.
  • Tax treaties and totalization agreements are not considered for the purpose of this calculation.
  • The moving expense reimbursement is duly supported by vouchers.
  • The Home Leave benefit does not meet the requirements to be deemed non-taxable.

Calculation of taxable income

*Exchange rate for 2018: 1USD = ARS18.549

Exchange rate for 2019: 1USD = ARS37.50

Exchange rate for 2020: 1USD = ARS59.69

Year-Ended 2018 2019 2020
Days in Argentina per year 365 365 365
Income subject to income tax      
Salaray 1,854,900.00  3,750,000.00  5,969,000.00 
Bonus  370,980.00  750,000.00  1,193,800.00 
Cost-of-living allowance 185,490.00  375,000.00   596,900.00 
Net housing allowance 222,588.00  450,000.00  716,280.00 
Company car (50 percent) 55,647.00  112,500.00  179,070.00 
Moving expense reimbursement 370,980.00   -  -
Home leave 92,745.00  -  - 
Education allowance 55,647.00  112,500.00  179,070.00 
Total earned income 3,208,977.00  5,550,000.00  8,834,120.00 
Other income - -
Total income 3,208,977.00  5,550,000.00  8,834,120.00 
Deductions: Social Security and Medical Care -181,040.00  -232,565.64  -351,453.65 
Total taxable income 3,027,937.00  5,317,434.36  8,482,666.35 


Calculation of tax liability

  2018 2019 2020
Taxable income as above 3,027,937.00  5,317,434.36  8,482,666.35 
Domestic tax rebates (dependent spouse rebate) - Married with 2 children, non-taxable income and special deduction -513,431.26  -758,265.79  -950,331.47 
Net taxable income 2,514,505.75  4,559.168.57  7,532,334.89 
Argentine tax thereon 827,796.39  1,528,638.19  2,539,548.81 
Total Argentine tax (including SST) 1,008,836.39  1,761,203.83  2,891,002.46 


In connection with the company car, the amount of personal use has to be determined in order to tax such amount.

Foreign-source interest income is not taxable assuming that the individual qualifies as a NRPP.

Social Security for 2020 is estimated with current values, but the maximum taxable base is expected to change throughout the year.

As from fiscal year 2018, a 40 percent rent amount can be deducted for tax purposes, provided certain conditions are met. In order to avoid making this sample calculation more complex, we have assumed that the deduction requirements are not met.


1. Please refer to the following section to check these definitions.

2. Certain tax authorities adopt an economic employer approach to interpreting Article 15 of the OECD model treaty which deals with the Dependent Services Article. In summary, this means that if an employee is assigned to work for an entity in the host country/jurisdiction for a period of less than 183 days in the fiscal year (or, a calendar year of a 12-month period), the employee remains employed by the home country/jurisdiction employer but the employee's salary and costs are recharged to the host entity, then the host country/jurisdiction tax authority will treat the host entity as being the "economic employer" and therefore the employer for the purposes of interpreting Article 15. In this case, Article 15 relief would be denied and the employee would be subject to tax in the host country/jurisdiction.

3. For example, an employee can be physically present in the country/jurisdiction for up to 60 days before the tax authorities will apply the economic employer approach.
Sample calculation generated by KPMG in Argentina, the Argentine member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on tax regulations in force as of January 2020.


All information contained in this publication is summarized by KPMG in Argentina, the Argentine member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Argentina Tax Act 20.628 (Income Tax) 23.966 (Wealth Tax) 24.241 (Social Security) 23.349 (Value-Added Tax)


© 2020 KPMG Tax and Legal Advisers, the Belgian member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. For more detail about the structure of the KPMG global organization please visit

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