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Argentina: Other taxes and levies

Other taxes and levies

Taxation of international executives

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Social security tax

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 ARS159,028.80.
As regards to employers’ social tax rates, it depends on the type of employer:

a) 20.40 percent for employers belonging to the private sector whose main activity falls within the services sector or in the commerce sector, in accordance with the resolution of the Secretariat of Entrepreneurs and Small and Medium Enterprises 220 of 12 of April 2019, provided that its total annual sales exceed, in all cases, the limits for categorization as a medium-sized company made by the relevant body.

b) 18 percent for the remaining employers belonging to the private sector not included in the previous paragraph. Likewise, this rate shall apply to entities and organizations of the public sector included in article 1 of Law No. 22.016 and its amendments

Taxpayers can compute a portion of the employer contribution actually paid as a tax credit of the Value Added Tax, as indicated in Annex I.

In the case of exporters, the contributions that are computable as a tax credit of the Value Added Tax, in accordance with the provisions of the preceding paragraph, shall have the character of a tax invoiced for the purposes of the application of article 43 of the VAT Law.

In addition, the amount of ARS7,003.68 will be deducted monthly for each one of the workers subject to the rate of 20.40 percent, whatever the hiring modality, adopted under the Labor Contract Law No. 20,744, the National Regime of Agrarian Labor Law No. 26,727 and the regime of the construction industry established by Law No. 22,250, its amendments and complementary ones.

Detailed mechanisms are established for part-time contracts, the complementary annual salary and similar.

Certain employers in the textile and clothing, footwear and leather goods, agricultural and health-related institutions sectors shall consider that their deduction is the amount of ARS17,509.20, which will not undergo any update. Similar deductions may apply to public service concession employers, to the extent that the share capital of the concession company belongs to a percentage not less than eighty percent (80 percent) to the national State.

In addition to the deduction indicated in the previous article, employers who have a payroll of up to TWENTY-FIVE (25) employees, will enjoy a deduction of ARS10,000 monthly, applicable over the total tax base indicated above.

In addition to social security treaties, Argentine legislation contemplates other situations of exemption in the payment of Social Security that should be evaluated.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Argentina?

Are there any gift, wealth, estate, and/or inheritance taxes in Argentina?

Wealth Tax – Resident in Argentina as of 31 December

The wealth tax for individual residents is levied on the worldwide assets they hold at the end of the year. Tax rate are progressive and assets held abroad are taxed at a higher tax rate which can be decreased to the local assets in the case of financial assets located abroad, in the event that the repatriation of the proceeds of its realization is verified. In this event the maximum reimbursement will be the tax amount previously paid.

 

Such rates are 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 ARS2,000,000 for fiscal year 2019 onwards, no wealth tax will apply.

The tax payable by individuals resident in Argentina will be calculated applying the following tax rates:

Fiscal Year 2019*
Assets exceeding the non-taxable minimum (ARS2,000,000) Wealth Tax Calculation
From ARS To ARS Fixed tax (ARS) Plus

Over the assets exceeding

ARS

  3,000,000   0.50%  
3,000,000 6,500,000 15,000 0.75% 3,000,000
6,500,000 18,000,000 41,250 1% 6,500,000
18,000,000 onwards 156,250 1.25% 18,000,000

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 5 years, are subject to this tax only on assets located in the country/jurisdiction, valued according to the law.

As regards employees, if the annual gross compensation surpasses the amount of ARS1,500,000, their assets valued according to the law are lower than ARS2,000,000 (for fiscal year 2019), and they are not registered under the wealth tax, they have to file an informative wealth tax return which due date operates on 30 June.

Wealth Tax - Non-residents living 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 individual non-residents in Argentina.

The tax payable by individuals will be calculated applying the following rates:

Fiscal Year Tax Rate
2019 0.50%

In this case, the non-taxable amounts do not apply. However, when the tax amount payable is equal to or lower than ARS255.75, no payment has to be made.

Wealth tax-substitute taxpayer

The tax rate to be applied to shareholders of Argentine companies was fixed at 0.5 percent.

Inheritance/gift taxes

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.

Real estate tax

Are there real estate taxes in Argentina?

Yes, each province applies its own real estate tax.

Also income tax will be generated (15 percent) by any real estate´s sale, if the property was bought after 2018, and it is not the permanent home.

Sales/VAT tax

Are there sales and/or value-added taxes in Argentina?

Yes, all sales and services are subject to VAT at 21 percent. (10.5 percent in certain cases).

Unemployment tax

Are there unemployment taxes in Argentina?

They are included in the employer´s social security contributions.

Other taxes

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.

Land tax

  • Refer to Real Estate Tax. 
  • Tax For An Inclusive And Solidarian Argentina.

Payroll 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.

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?

If you are an Argentine resident, 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 5 years is not mandatory to report the assets abroad.

Double taxation treaties

The following countries/jurisdictions have a double taxation treaty with Argentina:

Australia

  • Belgium Bolivia Brazil Canada
  • Chile
  • China (not in force)
  • Colombia (not in force)
  • Denmark
  • Finland
  • France
  • Germany
  • Italy
  • Israel (not in force)
  • Japan (not in force)
  • Luxembourg (not in force)
  • Mexico
  • Netherlands
  • Norway
  • Qatar (not in force) Russia
  • Spain Sweden Switzerland
  • Turkey (not in force)
  • United Arab Emirates
  • United Kingdom

Argentina has concluded social security totalization agreements with the following countries/ jurisdictions:

  • Belgium
  • Chile
  • Colombia
  • France
  • Greece
  • Ibero-American treaty: Argentina, Bolivia, Brazil, Chile, Colombia*, Costa Rica*, Ecuador, El Salvador, Paraguay, Peru, Portugal, Spain, Uruguay, Venezuela*, and the Dominican Republic*
  • Italy
  • Luxembourg
  • MERCOSUR (Brazil, Paraguay and Uruguay)
  • Peru
  • Portugal
  • Slovenia
  • Spain

* 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.

Footnotes

1. Argentine Law 24241.

2. Cap amount in force as from December 2019.

3. Argentina Tax Act 23966.

Disclaimer

All information contained in this publication is summarized by KPMG in Argentina, the Argentine member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Argentina Tax Act 20.628 (Income Tax) 23.966 (Wealth Tax) 24.241 (Social Security) 23.349 (Value-Added Tax)

Copyright

© 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 https://home.kpmg/governance.

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