Argentina

Social security contributions

The employer Social Security Tax is payable on the employee’s total monthly compensation and is not subject to any cap amount. The total employer contribution is 26.4% for companies mainly engaged in the provision of services or trade, provided their annual sales exceed the amount established by the regulation that is updated annually (current amounts are ARS 6,520,009,000 for services and ARS 28,997,100,000 for trade), and 24% for all other companies.

Argentine employers are exempt from paying social security contributions for the first ARS 7,003.68 per month per employee.

The employee social security withholdings, which include pension fund, healthcare, and social services, are payable on the monthly salary, up to a monthly cap of ARS 2,841,525.42 (as of 1 December 2024), except for June and December, where the cap is increased by 50% due to the 13th month salary. This salary cap is index-adjusted in March, June, September, and December of each year.

The total employee Social Security Tax rate is 17%, which consists of contributions of 11% to the pension fund, 3% to healthcare, and 3% to social services.

Consumption taxes

Value-added tax (VAT) is assessable on the sales value of products (e.g. raw materials, produce, finished, or partly finished merchandise) with few exemptions, most services (e.g. construction, utilities, professional and personal services not derived from employment, rental), and on import of goods and services. The VAT rate is 21%, although certain specific items are subject to a 10.5% and 27% rate. The VAT is also applicable on earning derived from a self-employed activity, at a general rate of 21%. It is paid by filing monthly tax returns.

The increased rate of 27% applies to 'utilities services' (e.g. telecommunications, household gas, running water, sewerage, and energy) not rendered to real estate used for dwelling purposes.

A reduced rate of 10.5% applies to certain transactions, including (but not limited to) the following:

• Construction of housing.
• Interest and other costs on personal loans granted to final consumers by financial institutions.
• Sales and imports of living bovine animals, supply of publicity and advertising in some specific cases.
• Any passenger transportation operating inside the country when the distance does not exceed 100 km.
• Medical assistance in some specific cases.
• Certain capital goods depending on the Custom Duty Code.

VAT paid on purchases, final imports, and rental of automobiles not considered as inventory, cannot be computed by the purchaser as a VAT credit. The same tax treatment applies to other services, such as those provided by restaurants, hotels, and garages.

Registered VAT payers, except for taxpayers carrying out certain activities that, due to the singularities of their transactions, are required to include in their tax returns specific information, are required to use a web-based (online) modality for filing VAT return.

‘Digital transactions’ (e.g. digital services, hosting, online technical support, software services, Internet services) are subject to Argentine VAT at a 21% rate if they are supplied by a non-resident entity to an Argentine customer and there is an effective use in Argentina. The tax is to be paid by the Argentine recipient of the service unless there is an intermediary in the payment of the fee (e.g. bank institutions, credit card issuers), in which case such intermediary will act as a collection agent for the tax.

In addition, foreign beneficiaries carrying out taxable activities within the Argentine territory are also subject to VAT. The resulting tax is to be remitted to the Argentine tax authorities by the local counterpart on a reverse-charge mechanism.

Tax on personal assets (wealth tax)

On June 2024, Argentina’s Congress approved Law N° 27.743, and introduced new modifications to Wealth tax.  Updated deductions and scales were settled for fiscal year 2023 and onwards. A new “Special Advance Payment Regime” (“Régimen especial de Ingreso del Impuesto sobre los Bienes Personales” or “REIBP”) was implemented, offering taxpayers in Argentina an opportunity to simplify their tax obligations while securing fiscal stability. This voluntary program is tailored to individuals and undivided estates who were Argentine tax residents as of December 31, 2023. Non-residents with a local representative may also participate. The regime allows taxpayers to make one advance payment and avoid future tax return filings and tax payments until fiscal period 2027.

Participants benefit from fixed tax rates of 0.45% for unreported assets and 0.50% for those regularized through Argentina’s disclosure regime. Additionally, increases in net worth during this period generally do not create new liabilities unless specific conditions apply, such as donations.

One of the most attractive features of the REIBP is the fiscal stability it guarantees, extending until 2038. This ensures predictable obligations, with reduced tax rates after 2027. To join, taxpayers must make an initial payment covering 75% of the calculated liability, which is credited toward the total obligation.

For those individuals/undivided states, who decided to not adhere to REIBP, will be subject to an annual wealth tax on their worldwide taxable personal assets exceeding the minimum exempt threshold as of 31 December, without consideration of liabilities. These taxable assets include, among other items, real estate, cars, and bank accounts. However, savings accounts, term deposits at Argentine banks, and Argentine government bonds are tax-exempt. Individuals domiciled abroad and working in Argentina for reasons duly proven for a period not longer than five years are assessable only on personal assets located in Argentina.

For fiscal 2023 and onwards, new progressive tax rates are established for personal property, eliminating the distinction between assets located in the country and abroad. The rates will be applied uniformly and will gradually reduce to 0.25% by 2027.

The non-taxable minimum is increased to ARS 100,000,000(*) for the year 2023, and the exempt amount for housing is raised to ARS 350,000,000(*).

 Those taxpayers ("Good Taxpayers") who have fulfilled all their tax obligations between 2020 and 2022 can access a 0.50% reduction in the applicable rate for the periods 2023 to 2025.

(*) Tax rates and exempt minimum will be adjusted annually, considering the annual variation of the Consumer Price Index.

FY 2023 tax rates for assets held:

FY 2023 tax rates for assets held by "Good Taxpayers":

All taxpayers must file an annual tax return and pay the tax liability in June of each year.

Individuals living abroad who own assets located in Argentina must pay the corresponding tax in full and final settlement through a local representative in June of each year. The tax rate is 0.5%. Tax is not levied where tax liability on each year does not exceed ARS 255.75.

Shares held in Argentine companies and participation in fideicomisos (local trusts) set up in Argentina are not included in the shareholder’s wealth tax return. However, the respective company and fideicomiso must determine wealth tax on the participation owned by individuals residing in the country or abroad, or owned by companies residing abroad. The wealth tax rate is 0.5% and is payable by the company or local trust to the tax authorities. However, reimbursement from the shareholders can be claimed.

Inheritance and gift taxes

There is no federal gift and inheritance tax in Argentina. However, the province of Buenos Aires has gift and inheritance taxes based on certain conditions and amounts. The federal government and other provinces may introduce similar taxes in the future.

Real property tax and automobile duty

There is no federal real property tax or automobile duty in Argentina. Property taxes fall within the authority of the provinces. Federal property taxes are included in the wealth tax.

Real estate tax is levied on the ownership of real estate properties in each jurisdiction. Automobile duty is levied on the ownership of cars registered (car plate licence) in each jurisdiction.

Amounts are determined by provincial taxation authorities based on the fiscal valuation of the asset (also determined by the tax authority) and the tax rates in force under the annual tax law. Payments must usually be made on a monthly or a bimonthly basis.

Stamp tax

Stamp tax is levied by each of the 24 jurisdictions in Argentina and applies principally to contracts and agreements, deeds, mortgages, and other obligations. It also applies to agreements and discharges of a civil, financial, or commercial nature, of which there is written evidence, or in certain instances, that are the subject of entries in books of accounts. The average tax rate is 1% applicable on the economic value of the contract.

In the City of Buenos Aires, special rates of 0.5%, 1%, 1.2%, 1.5%, 3%, and 3.6% are aaplicable depending on the kind of transactions and, in the case of transactions involving uncertain consideration, a fixed tax  is applicable (on the fulfilment of certain conditions).

Tax on bank account debits and credits

Debits and credits from bank accounts are subject to this tax at 0.6% on the amount of the transaction. However, the deposit and disposal of employment compensation and pension payments are tax exempt.