Taxation of international executives
Are there social security/social insurance taxes1 in Argentina? If so, what are the rates for employers and employees?
Employer and Employee
Argentine nationals and expatriates working in Argentina are subject to social security contributions.
Currently, the employees’ social taxes rate is 17 percent of their gross wages. Note that the employee's contributions are applied on a monthly taxable base of ARS 81,918.55. As regards employers’ social tax rates, they are equal to 25.5 percent (23 percent* or 27 percent** will be modified each year until reach the 25,5 percent in 2022). Employers’ contributions are not capped.
In accordance with the laws currently in force, the employee’s cap is updated every March, June, September, and December.
In addition to social security treaties, Argentine legislation contemplates other situations of exemption in the payment of Social Security that should be evaluated.
* Employers for all activities, except commercial and service ones, invoicing more than ARS48 million a year.
** Commercial and service activities invoicing more than ARS48 million a year.
Wealth Tax – Domiciled in Argentina as of 31 December
The wealth tax is levied on the worldwide assets that individuals domiciled in Argentina hold at the end of the year. Tax rate will be reduced progressively over the next fiscal years. Such rate is applied over the amount in excess of the non-taxable minimum amount corresponding to each year.
If the total amount of assets, valued according to the Wealth Tax Law, does not surpass the amount of ARS 1,050,000 for fiscal year 2018, no wealth tax will apply.
The tax payable by individuals domiciled in Argentina will be calculated applying the following tax rates:
|Fiscal Year||Tax Rate||Non-Taxable Minimum (ARS)|
Foreign individuals whose presence in Argentina is based on an employment relationship duly proved and which requires their permanency in Argentina for a period not exceeding five years, are subject to this tax only on assets located in the country, valued according to the law.
As regards employees, if the annual gross compensation surpasses the amount of ARS 1,000,000, their assets valued according to the law are lower than ARS 1,050,000 (in fiscal year 2018), and they are not registered under the wealth tax, they have to file an informative wealth tax return which due date operates on June 30.
Wealth Tax - Domiciled abroad as of 31 December
Argentina imposes a wealth tax applying a fixed tax rate over the assets held in Argentina at the end of the year by individuals domiciled abroad.
The tax payable by individuals domiciled abroad will be calculated applying the following rates:
|Fiscal Year||Tax Rate|
In this case, the non-taxable amounts do not apply. However, when the tax amount payable is equal to or lower than ARS 255.75, no payment has to be made.
Wealth tax-substitute taxpayer
The tax rate to be applied to foreign shareholders of Argentine companies was fixed at 0.25%
The wealth tax will no longer apply starting 1 January 2019.
There are no national inheritance and gift taxes in Argentina. However, regulations at a provincial level must also be analyzed. For instance, there is an inheritance tax in Buenos Aires and Entre Rios provinces.
Yes, each province applies its own real estate tax.
Yes, all sales and services are subject to VAT at 21 percent. (10.5 percent in certain cases).
They are included in the employer´s social security contributions.
Are there additional taxes in Argentina that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
There is a stamp tax which varies from one jurisdiction (provinces) to another.
There is also a tax applied on debits and credits in local checking accounts.
Refer to Real Estate Tax.
Under the concept of “payroll tax” we can include the social security contributions mentioned above, payments to the Labor Risks Insurance Companies (ART) and the union payments - depending on the Bargaining Agreement the company applies.
Is there a requirement to declare/report offshore assets (e.g., foreign financial accounts, securities) to the country’s fiscal or banking authorities?
If you are an Argentine resident living in Argentina, you must report all your asset abroad (including Financial assets).
However, if you are a foreigner in Argentina, based on the grounds of employment which is duly accredited and which requires their permanency in Argentina for a period not exceeding five years is not mandatory to report the assets abroad.
The following countries have a double taxation treaty with Argentina:
Argentina has concluded social security totalization agreements with the following countries:
* Not in force yet. They did not ratified the agreement signed
Other agreements have been signed but they are not currently in force/fully operational.
1Argentine Law 24241.
2Cap amount in force in March 2017.
3Argentina Tax Act 23966.
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