Other tax considerations in Argentina
Provincial taxes - Turnover tax
Turnover tax or gross income tax is a tax collected by the province. The taxable event is the performance of commercial or industrial activity in the territory of the province. Tax rates can be 0.5 percent up to 6 percent in connection with the activity applied on the gross income. Some activities are charged with higher tax rates, such as online gambling, which is taxed at a 15-percent tax rate in the Province of Buenos Aires.
In some provinces, turnover tax is also applicable to the import of digital services.
Every province has its own turnover tax. However, the turnover tax collected by each province is similar, although different tax treatments may be applicable for certain activities.
Tax benefits
For some activities, there are special tax benefits at the federal level and provincial level.
There are tax benefits for an investment in renewable energy, software production and services, investments in capital assets, biodiesel fuel and mining.
The benefits may include partial or full exemptions, accelerated depreciation and drawback.
VAT on the import of digital services
The federal government collects VAT on the importation of digital B2C services. The taxpayer is the local resident unless the service provider has a fixed place in the Argentina. The tax rate is 21 percent.
Double taxation treaties
Argentina has signed tax treaties with Germany, Australia, Austria, Belgium, Bolivia, Brazil, Canada, China, Chile, Denmark, United Arab Emirates, Spain, Finland, France, Italy, Mexico, Norway, Netherlands, the UK, Turkey, Russia, Sweden, Switzerland and Qatar (all in force) and Japan and Luxembourg (signed but not yet in force).
Personal Asset Tax
Law No. 27,743 “Palliative and Relevant Tax Measures”, enacted in the Official Gazette on July 8, 2024, introduced certain amendments to the Personal Property Tax, including an increase in the minimum tax exemption to Ps.100 million for tax year 2023 (adjustable by the CPI on an annual basis) and a gradual reduction of tax rates as from tax year 2023 until tax year 2027, ending with an aliquot of zero point 25 percent on the total value of the assets that exceed the established non-taxable minimum.
Asset regularization regime
Law 27.743, stated that individuals, undivided estates and individuals included in article 53 of the Income Tax Law, who are tax residents, as well as those who are not tax residents for their assets located in Argentina or for the income they have obtained from Argentine sources, may adhere to this regime until April 30, 2025 (with the possibility of extending it until July 31, 2025).
The assets covered by this regime may be assets located in Argentina or abroad that they owned or were in their possession, possession or custody as of December 31, 2023.
The subjects that adhere to the regime must pay a Special Tax in U.S. dollars, whose applicable rate on the assets that are foreignized will be zero percent when the value of such assets is less than USD 100,000. Once this value is exceeded, a progressive tax rate of 5 percent, 10 percent and 15 percent will be applied depending on the moment in which the adherence to the plan is effective. The adherent subjects will be exempted from paying this Special Tax if the money regularized under this regime remains deposited in a Special Account for Regularization of Assets until December 31, 2025.
During the period in which the funds are deposited in the Special Account for Regularization of Assets, they may be invested exclusively in the financial instruments indicated in the regulations. The proceeds from the sale of regularized securities will be treated similarly if they are transferred to a special account.
Those who adhere to the regime will be released from any civil action and for tax, exchange, customs and administrative offenses that may be applicable due to the non-compliance with the obligations related to or originating from the goods, credits and holdings declared in the regime.
