Argentina

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

The tax rate for corporations (Sociedades Anonima, SRL, Comandita) is 35%. For other partnerships, the tax is charged to each partner according to a progressive tax rate scale ranging from 9% to 35% depending on the amount of the taxable income.

   
Tax rate on long-term capital gains The tax rate of the long-term capital gains is 35%.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies Dividends, interests and royalties are subjected to a withholding tax at the source with a maximum rate of 15%, 20% and 18% respectively, on the gross amount.
   
Tax rate on branches Branches are taxed at the rate of 35%.




Income tax

Fiscal year The financial year begins on 1st January and ends on 31st December of each year.
   
Income tax rate Resident individuals in Argentina are liable for income tax at progressive rates on their worldwide income. Rates range from 9 to 35 percent. There are 7 tax scales:
- from 0 to 10,000: 9%,
- from 10,001 to 20,000:14%,
- from 20,001 to 30,000: 19%,
- from 30,001 to 60,000: 23%,
- from 60,001 to 90,000: 27%,
- from 90,001 to 120,000: 31%,
- beyond 120,001: 35%.
   
Tax deductions or other allowances There are several types of allowances or tax reductions. The amounts vary from ARS 1,200 to ARS 18,000. For example, for every child under 24 years old, couples can deduct ARS 1,200 by child in the amount of their annual income.



VAT rates

Standard rates 21%
   
Reduced rates Capital goods, public transport, bovine meat, fresh vegetables, lodgings, interest on loans received from argentine financial institutions, property plant and equipment included in a list provided, newspapers and magazines, transportation for individuals are taxed at the rate of 10,5%.
Exports are exempt from VAT.



Other important taxes


Name of tax
Rate
Tax on turnover  
This tax is levied by each province. It applies to every commercial deal (sales, rents, services, royalties, interests). The rate of this tax varies depending the concerned sector of activities.  
Wealth tax (individuals)  
0.5% on property valued up to 200,000 $
0.75% when exceeding that amount and for non-resident companies  


 

Accounting

Introduction
Argentinean accounting is inspired by the American one. However, there are some differences.


Obligations and publications
All the Argentinean commercial companies of Argentina have to produce some accounting documents:
- the accounting book,
- the assets and liabilities,
- the stock evolution,
Companies have to establish a balance sheet and a profit and loss account which have to be approved by internal or external auditors.

Certification and auditing
The control of accounts and documents of financial analysis can be made inside or outside the company. In both situations, only the Certified Public Accountants can guarantee the quality and the compliance of the accounting information.

Professionals and representative organizations
The "Federation Argentina de Consejos Profesionales de Ciencias Economicas".



Useful links
ADI (Agencia de Desarrollo de Inversiones)
Ministry of Economy
Federal Administration of the public recipes

Last modified in January 2007
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