Taxes in Argentina

Expats will find that taxes in Argentina are as common as cattle. The country seems to have a tax for everything, and it follows that people try their best to find ways of avoiding payment - perhaps one reason that could account for the country's suffering infrastructure.

This South American nation has no inheritance nor capital gains tax, but there are high rates attached to everything else – income tax, personal asset taxes, transfer taxes and a VAT (Value Added Tax) that stands at 21% as of 2010.

The tax system is complicated and it would be advisable for expats to seek the guidance of an accountant.

Income Tax in Argentina

Any resident of Argentina is liable for income tax on both monies earned in the country as well as that earned worldwide. This applies to any foreigner or expat with a residence visa (minimum 12 months). Foreigners residing in the country for less than 6 months of the year, who do not have a temporary or permanent visa, are only taxed on Argentine-sourced income.

2010 Income rates are as follows:

Taxable Income (ARS)         /         Tax Rate %

• ARS 0 to 10,000                                  9%
• ARS 10,001 to 20,000                        14%
• ARS 20,001 to 30,000                        19%
• ARS 30,001 to 60,000                        23%
• ARS 60,001 to 90,000                        27%
• ARS 90,001 to 120,000                      31%
• ARS 120,001 and above                     35%

Employers are responsible for dealing with the relevant paperwork regarding tax for their employees, and usually make a single payment at the end of the year.

Self-employed individuals pay their taxes to the local tax office every two months. There are various allowances and deductions that can be taken into account; such as those for dependants, life insurances and funeral expenses.

Many, many people in Argentina "work in the black", meaning illegally, in order to avoid paying their taxes. Employment taxes imposed on an employer are crippling, and expats may be surprised to find that it is common for even businessmen to go the ‘black’ route.

Non-residents’ income may be subject to a withholding tax of 35%, calculated on presumed revenues. Expats should be well aware that money paid into an Argentinian bank account from an offshore source may result in this deduction, so it is important to check on this before transferring large sums of foreign currency into the country.

Personal Asset Tax in Argentina

Personal asset tax is basically a wealth tax and is payable on all assets (cars, property etc.) owned by those residents in Argentina - even if those assets are located abroad.

It is also payable by foreigners who reside abroad, but who own assets in Argentina.

Certain deductions that might be allowable for an Argentinian, will not be a applicable to a foreigner. An Argentinian resident will only pay tax of between 0.5% and 1.5% on a property valued in excess of Arg$305,000. An expat, on the other hand, will pay 1.5% tax regardless of the value of the property.

Personal asset tax is also payable on shares in Argentinian companies.
Income from rent is taxed at the highest rate, 35%, and there are land taxes, municipal and property taxes to pay too. The latter vary in rate from province to province.

Corporate tax on companies runs at 35% whether owned by Argentinians or foreigners.