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:
- Taxable income from ARS 0 to ARS 5 million: 25%.
- Taxable income from more than ARS 5 million to ARS 50 million: ARS 1,250,000 + 30% on the amount that exceeds ARS 5 million.
- Taxable income from more than ARS 50 million: ARS 14,750,000 + 35% on the amount that exceeds ARS 50 million.
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 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 (see the Withholding taxes section).
Tax on minimum notional income
The tax on minimum notional income has been repealed as of 2019.
Local income taxes
For a description of the local (jurisdictional) tax on gross revenues from the sale of goods and services, see Turnover tax in the Other taxes section.