If you are active in the Argentinian market or considering company incorporation in Argentina, you will
need to find a reliable corporate accounting firm to support you.
Because a good accountant in Argentina will be able to help you
better plan your taxes and maximize your financial efficiency,
while remaining in full compliance with local regulations.
Being the third-largest economy in Latin America by
gross domestic product (GDP), Argentina offers a host of
opportunities to investors, despite the country experiencing some
economic difficulties in recent years.
Notably, Argentina has seen significant growth since a
well-publicized debt crisis in the early-2000s, with GDP increasing more than four-fold between 2002 and
2019, even though it witnessed decline in the final two years
of that period.
Notably, Argentina has seen significant growth since a
well-publicized debt crisis in the early-2000s, with GDP increasing more than four-fold between 2002 and
2019, even though it witnessed decline in the final two years
of that period.
Buenos Aires, the capital city of Argentina
Argentina has a diversified economy, with a strong and
well-developed industrial base that includes a large vehicle
manufacturing sector, as well as some of the highest-quality
professional services in Latin America, buoyed by the greatest level of English proficiency among
non-English speaking nations in the region. Those come on top of a
wealth of mineral and agricultural resources, with some of the
country’s main exports including soy, cereals, and meat.
As a member of the Southern Common Market (Mercosur) — a
30-year-old economic integration initiative
that also includes Brazil, Paraguay, and Uruguay — Argentina
is party to a number of free trade agreements, offering
locally based businesses preferential access to key South American
markets including Chile, Colombia, and Peru, as well as the likes
of Egypt and Israel.
If you are looking to enter the Argentinian market, or already
active there and in need of a good accountant in Argentina, read on
to understand what they will be able to do for your business, as
well as some of the main taxes they will help you deal with.
Or you could go ahead and contact us now to discuss how
we can support your business.
What will your accountant in Argentina do for your
business?
Argentina has a strict tax system and tax authorities are known
for studiously issuing penalties for non-compliant activities. Your
accountant in Argentina — whether you choose a dedicated
accounting firm or a general provider of back-office support
— will be well schooled in the particularities of the
Argentinian tax system and will be able to guarantee that you avoid
any sort of legal inconvenience or penalties related to your
accounts and periodic reporting responsibilities.
Beyond that, your accountant in Argentina will be able to help
you properly plan and manage your taxes in order to reduce your
burden as much as possible. Where you have operations in other
markets, a provider with an international presence can be
preferable, as they will have knowledge of the tax regimes in those
other markets and experience in helping clients manage their
burdens across borders.
Argentina has a number of double taxation agreements in place,
including with the likes of Australia, Canada, and Russia, as well
as with several European and South American nations, which your
accountant will be able to help you take advantage of where
applicable.
Your accountant will help you plan your taxes
Taxes your accounting firm in Argentina will help with
Your accountant in Argentina will be able to assist you in the
management of the following taxes.
Value-added tax (VAT): in Argentina is set at
21% on almost all products and services, although a VAT rate of 27%
applies to certain goods or services, including gas, energy, and
water supply, as well as on telecommunications. When it comes to
food, medical gear, books and transport, VAT is set at a lower rate
of 10.5%.
Corporation tax: following a recent reform,
corporation tax is now set at between 25% and 35%, with
corporations paying a tax rate of 25% on up to 5 million
Argentinian pesos (approximately $51,500 at time of publication); a
tax rate of 30% on profits between 5 million and 20 million
Argentinian pesos; and a tax rate of 35% on profits that exceed 20
million Argentinian pesos (approximately $205,000).
Taxes on foreign transactions: are set at
between 0% and 30% depending on the product or service, based on a
Mercosur-established foreign trade agreement known as the Common
External Tariff.
Property Tax: is set at the state level in
Argentina, both for real estate and for automobiles, so your
property tax burden can range. As such you may wish to seek the
advice of an accountant in Argentina before making a purchase.
Wealth tax: came into effect in December 2020,
in part with the intention of helping the country overcome the
turmoil of the global pandemic. Under the terms of the new wealth
tax, residents with more $2.4 million of assets must pay a one-time
tax set at 2% of those assets.
Social security tax: is set at 23%, however an
entity can apply to be categorized as a small- or medium-sized
enterprise (SME), making it eligible for a lower rate set at
between 19.5% and 19.8%.
Gross Income Tax: is set at the state level and
is calculated based on individual sales, with a general rate of 3%.
However, it can be set at between 1% and 8%, depending on the good
or service involved.
Other taxes: Non-essential products, such as
mobile phones, and consumables that carry public health hazards,
including tobacco and alcohol, are subject to a 60% tax rate.
Originally published 13 August, 2021 | Updated on: 07
August, 2022
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.