If you are moving to Argentina, or if you are working in the country, you will probably want to know how the tax system works. According to the law, all residents of the country have to pay income tax, which is deducted monthly during the fiscal year from January to December.
Although you do not need to fill in a tax return, unless you are self-employed, it is still advisable that you learn about the tax system before travelling.
The different types of tax in Argentina
Income Tax
The Income Tax Rate is a tax collected from individuals, which is imposed on different sources of income, such as labour, pensions, interest, and dividends. Residents and non-residents are taxed at rates ranging from 5% to 35%.
Sales Tax
The Sales Tax Rate is a tax charged to consumers based on the price of various different goods and services. Revenues from the Sales Tax Rate are an important source of income for the Argentinian government.
Capital Gains
Capital Gains is a tax imposed when individuals part with an asset and make capital gains on it. Depending on your situation, regular income tax may apply on income earned from the sale of property.
Rental Income Tax
Rental income from property located in Argentina is treated as part of your regular taxable income. Outside of Buenos Aires, which is exempt, rates vary by province and are applied to the assessed value of the property.
Other taxes
There are other taxes in Argentina, such as VAT on goods, which varies according to to the type of product. Some products and services, such as milk, books, healthcare, and education services are exempt from VAT, whereas, for meat, fruits and vegetables, bread, or interest on certain loans, the VAT rate is levied at up to 10.5%. Regarding luxury goods, the VAT currently stands at 21%, which is the same for water, gas, and electricity. There are also taxes to help to cover the costs of council services, such as street lighting, road repairs, and other communal services and taxes on assets worth more than 305,000 pesos.
Making tax payments is relatively easy, and can be done by cheque, debit or credit card, or by cash in person at your local tax office.
Tax rates
Over (column 1) Not over Tax on column 1 (ARS) Tax on excess (%)
0 25,754 - - 5
25,754 51,508 1,287.70 9
51,508 77,262 3,605.56 12
77,262 103,016 6,696.04 15
103,016 154,524 10,559.14 19
154,524 206,032 20,345.66 23
206,032 309,048 32,192.50 27
309,048 412,064 60,006.82 31
412,064 and over 91,941.78 35
We hope you found this article useful! For more articles on living in Argentina, visit our website.
Useful links:
Argentina Federal Administration of Public Revenue
PKF International
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