Tax in Argentina

Tax In Argentina

A Contractor’s Guide to Taxes :

One of the most consistently challenging aspects of contracting in Argentina is complying with the country’s tax system. As well as paying tax in Argentina, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. 

How do I calculate my taxable income:

If you’re working in Argentina under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Argentina for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Argentina, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Argentina through PAYE is left with the prospect of doing everything themselves.

Do you know much about Argentine Tax Law? Does Argentina have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Argentina can range from 5 to 35 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator:

If you are a contractor and want a calculation on your tax and net retention in Argentina, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax :

Contractors in Argentina are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. An Argentine umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Argentine taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Argentine tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax:

We work with numerous umbrella companies in Argentina, many of whom are experts in tax and immigration laws. If you have any questions about tax in Argentina, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Argentine work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Argentina but without the overhead of directly dealing with the Argentine tax authorities. Get in touch with us today for some reliable advice on tax in Argentina!

When Do You Need to Lodge Your Tax Return?:
11 April
Tax Filing Deadline :
30 June
Can you file it online? :
Yes, https://www.afip.gob.ar/sitio/externos/
Currency:
Argentine Peso (ARS)
Tax-free Threshold in:
None
Grossed Income:
Up to 20,000
Tax Rate:
5%
Grossed Income:
From 20,001 to 40,000
Tax Rate:
9%
Grossed Income:
From 40,001 to 60,000
Tax Rate:
12%
Grossed Income:
From 60,001 to 80,000
Tax Rate:
15%
Grossed Income:
From 80,001 to 120,000
Tax Rate:
19%
Grossed Income:
From 120,001 to 160,000
Tax Rate:
23%
Grossed Income:
From 160,001 to 240,000
Tax Rate:
27%
Grossed Income:
From 240,001 to 320,000
Tax Rate:
31%
Grossed Income:
Above 320,000
Tax Rate:
35%
How long does it take to set up:
24 days
How much does it cost:
ARS 16,300
Is it easy? :
Starting a Business Rank: 157 (Source: World Bank)
How to File Taxes in:

Individuals whose income is only from employment, and less than ARS 1,000,000, are not required to file individual PIT returns since the tax is duly withheld at source by the employer.

The steps to file taxes in Argentina involve:

Step 1: Register for your DNI (Documento Nacional de Identidad) with the Registro Nacional de las Personas that has jurisdiction over the area you live in. This will take around 1 month to arrive in the mail. A list of offices can be found here(link is external). Documents to bring include:

  • Original Birth Certificate, legalised by the Argentinean Consul in your country of Origin.
  • Certificate of residence issued by the National Directorate of Migration
  • A document stating your personal address

Step 2: Use your DNI and residence permit to apply for your Clave Unica de Identificación Loboral (CUIL) which is required by employers for the purpose of registering you legally for work.

Step 3: Apply for your unique tax identification number (CUIT – Clave Unica de Identification Tributaria) at your nearest Administración Federal de Ingresos Públicos (AFIP). Fill out the ‘160/F’ form and provide your DNI.

Step 4: Login to the electronic filing system on the AFIP(link is external) website using your CUIL/CUIT number. Using the SiRADIG web service, file form 572 to provide your employer information on all of your personal deductions. This must be done prior to 31 March of the year following the tax year. Personal deductions include:

  • Charitable contributions
  • Pension and social security contributions
  • Life insurance and funeral expenses
  • Rental expenses
  • Medical care contributions

Step 5: Collect an annual wage tax return which reports the annual compensation, deductions and withholdings for each fiscal year from your employer.

Step 6: File your income tax return on AFIP(link is external) by entering all sources of income, applicable deductions and personal tax allowances. Submit the tax return.

Step 7: Pay out any taxes due. The due date for tax payments is the day following the tax return filing due date which depends on your individual tax ID, CUIT. This is usually July 1. Interest is imposed for late payments (3% monthly), plus fines ranging from 50% to 100% of any taxes omitted.

Notes:

The above progressive tax rates are applicable to Argentine residents.

Non-residents residing temporarily in Argentina (for 6 months or less) are allowed a standard deduction of 30% of compensation for expenses incurred in earning income. The remaining 70% is taxed at a flat rate of 35% with no other allowable deductions. This results in an effective final withholding rate of 24.5%.

Does the 183 day rule apply in:

No, the 183 day rule does not apply in Argentina.

When do you become a tax resident in:

You become a tax resident in Argentine if you fall under one of the following categories:

  1. Native and naturalized Argentine citizens.
  2. Foreign individuals who are granted permanent residence in Argentina.
  3. Foreign individuals who remain in the country under temporary authorisation for a period of 12 months or more.

Note: individuals that fall under category 3 may be deemed to be a non-resident if they can prove that they do not intend to stay permanently in Argentina.

Am I taxed on my global income in:

Yes, if you are a resident.

Non-residents are taxed on Argentine-source income only.