DOING BUSINESS IN ARGENTINA

Posted By Romain Ponsot on Oct 6, 1907 in Doing Business


Date de publication : 06-10-1907

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The following information are for the sole purpose  of providing a general overview of  the local taxation of the Corporate tax aspects of the country. In any case, the information provided below cannot be considered as comprehensive or deemed to constitute specific legal advice.

 

Yes we tax in Argentina

Flash News

New tax reform: No specific information

New tax treaties:

  • Tax treaty between Argentina and Mexico enters into force.
  • Protocol to treaty between Argentina and Brazil is signed.
  • Tax treaty between Argentina and Singapore is under negotiation.
  • Tax treaty between Argentina and United Arab Emirates is ratified by United Arab Emirates.

Local tax advisors

No specific information on the local tax advisors.

Useful links

Website Tax administration: Click here

Website Ministry of Finance: Click here

Permanent Establishment

There is no definition of the Permanent Establishment under domestic tax law, however the domestic tax law provides specific cases where a non-resident is deemed to have a Permanent Establishment in Argentina (i.e. construction, reparation or assembly site for at least 6 month;… ). In the case where a non-resident company is deemed to have a Permanent Establishment in Argentina, such permanent establishment is taxed under the same rules than resident companies.

Resident companies are taxed on their worldwide income (« worldwide principle »). However, non-resident companies are only taxed on their revenues derived from Argentina sources (« source principle »).

Entities are considered to be resident for tax purposes in Argentina if they are incorporated in Argentina.

Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.

Corporate Income Tax

The general CIT tax rate is 35%.

Non-taxable income includes the following:

  • Dividends received from qualifying participations

Non-deductible expenses includes the following:

  • Dividends benefiting from the participation exemption ;
  • Interest in excess of the thin-capitalization threshold (interest in excess of thin capitalization rules are taxed as dividends);
  • Amortization of goodwill;

Carry forward : Yes 5 years, but some restrictions may apply.

Carry back: No

Companies should submit the tax return annually before May of the following year.

Annual tax returns are established by the company on a self-assessment system.

Companies shall pay monthly advance payments.

Whithholding Taxes (payment to foreign companies)

The local tax rates in Argentina are the following, subject to the provisions of an applicable double tax treaty, if any.

There is no WHT on the profits paid from a branch to its foreign head office.

The general rate of WHT on dividends is 0% of the gross amount.

The general rate of WHT on interest is 35%.

The general rate of WHT on Royalties is 35%.

The general rate of WHT on management fees is 35%.

The general rate of WHT on technical services is 35%.

Capital gains

Generally, capital gains are taxed under the regular CIT as general income.

VAT

Standard VAT tax rate is 21%

Zero-rated supplies include, subject to certain conditions:

  • exports of goods and services ;

Exempt supplies include, subject to certain conditions:

  • Certain financial services ;

Note: exempt transactions differ from zero-rated transactions in that the input VAT associated with exempt transactions is not deductible.

In case where for a tax period, Input VAT exceeds Output VAT, non-resident companies are generally are not entitled to claim for a refund.

No other specific information of VAT in Argentina.

Miscellaneous

The general statute of limitation is 5 years starting 1st January of the following year in which the tax return had to be filed.

The statute of limitation could be extended to 10 years for non-registered taxpayers.

There are foreign exchange rules in Argentina. Income and capital could be repatriated subject to conditions.

There are thin capitalization rules in Argentina. The interest derived from loans between related parties may be taxed as dividends in case where interest exceeds some ratios (2 times the taxpayer’s net equity).

 

 

 

Do not hesitate to share your experience in Argentina with us in the comments below. Any comments are welcome !

 

Romain Ponsot

Romain est conseiller en fiscalité au sein d’un leader mondial du shipping. Grâce à son expertise tant en matière de TVA, fiscalité internationale, problématiques intragroupe qu’en matière de fiscalité des particuliers, Romain vous guidera au travers d’articles professionnels et humoristiques. 

Romain, poète dans l’âme, aime particulièrement le couscous et passe beaucoup de temps à glacer ses souliers. Profil LinkedIn
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