Welcome to our blog post on Argentina’s Tax System. In this article, we will provide a comprehensive overview of Argentina’s tax system, focusing on key aspects that are relevant to individuals and businesses operating in the country. Whether you are an expatriate, an investor, or simply curious about Argentina’s tax regime, this country profile will provide valuable insights into its taxation structure, laws, and regulations. So, let’s dive into the intricacies of Argentina’s Tax System and gain a better understanding of its implications.
Argentina’s Tax System Overview
| Corporate Income Tax | 35%, prog. |
| Personal Income Tax | 35%, progr. |
| Gift Tax | 2-9%, progr. |
| Inheritance Tax | 2-9%, progr. |
| Wealth Tax | 2.25%, progr. |
Corporate Income Tax
Corporations incorporated in Argentina or permanent establishments of foreign corporations are subject to corporate income tax on worldwide income at graduated rates up to 35% (25%, 30% or 35%).
Personal Income Tax
Argentina residents are subject to tax on worldwide income at progressive rates up to 35%.
Gift and Inheritance Tax
Argentina does not impose Federal gift and inheritance tax. However, in the Province of Buenos Aires, gift and inheritance tax applies based on the value of the assets and degree of kinship between the donor/deceased at rates between 2% and 9%.
Wealth Tax
Argentina imposes wealth tax at progressive rates with a maximum rate of 1.75% for local assets as well as assets located overseas.
Anti-Avoidance Rules
Argentina has General Anti Avoidance Rules (GAARs), Transfer Pricing rules, and Thin Capitalization rules.
Controlled Foreign Corporation (CFCs)
A Controlled Foreign Corporation (CFC) is defined as one where: Argentine residents individually or through related parties, own more than 50% of the voting or economic rights of the CFC; at least 50% of the income of the CFC is passive; and the CFC is subject to tax at a rate less than 75% of the Argentine rate, presumed where the CFC is resident in uncooperative jurisdictions or tax havens. If the CFC is not subject to tax, a “look through” approach applies regardless of the percentage of ownership in the CFC. Argentine residents holding interests in CFCs are attributed the undistributed income.
Foreign Trusts
The Argentine CFC rules apply expressly to foreign trusts. However, where the trust is irrevocable, the settlor is not a beneficiary, and does not control the investments in the trust, the undistributed income of the trust will not be attributed to the settlor, and wealth tax will not be assessed on the value of the trust fund.
Foreign Investment Protection
Argentina has agreements with a number of jurisdictions for the protection of investments that provide for arbitration in the event of expropriation.
Double Tax Treaties (DTTs)
DTTs include Canada, Denmark, Netherlands, Spain, Switzerland, UAE, and the UK.
OECD Multilateral Convention
Argentina is a signatory to the OECD Multilateral Convention on Mutual Administrative Assistance in Tax matters, which requires signatories to exchange information “on request,” and authorizes exchange of information spontaneously and automatically.
Common Reporting Standard (CRS)
Argentina has adopted CRS for the automatic exchange of information, and has a number of active exchange relationships.
FATCA
Disclaimer:
Please note that the information provided in this blog post is for general information purposes only. It is not intended to serve as legal or tax advice. For specific guidance regarding your individual or business tax obligations, it is advisable to consult with a qualified legal or tax professional.
