If you are an active participant in the Argentinian Market or considering, company incorporation in ArgentinaYou will need to find a reliable company accounting firm to help you. A good accountant in Argentina can help you plan your taxes better and maximize your financial efficiency while still adhering to local regulations.
Being the third-largest economy in Latin AmericaDespite its economic difficulties in recent times, Argentina offers investors many opportunities.
Notably, Argentina has experienced significant growth since the well-publicized debt crisis of the early 2000s. Its GDP has risen by a substantial amount. increasing more than four-fold between 2002 and 2019Despite the fact that it experienced decline in its final two years.
The South American country has witnessed a corresponding overall rise in prosperity, with gross national income (GNI) more than tripling during that same period, to hit $11,130 per capita in 2019 (all figures in USD unless otherwise stated) — placing the country as an upper-middle income nation based on World Bank criteria.
Argentina has a diverse economy that includes a strong and developed industrial base. It also boasts a large vehicle manufacturing industry as well as some high-quality professional service in Latin America. greatest level of English proficiencyAmong the 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, which gives local businesses preferential access into key South American markets such as Chile, Colombia, Peru, and the likes of Egypt.
If you are interested in entering the Argentinian market or are already an active participant and need a qualified accountant in Argentina, then read on to learn what they can do for you, as well as the main taxes they will assist you with.
Or, you could continue. contact us nowLet’s talk about how we can help your business.
What can your Argentina accountant do for you?
Argentina has a strict tax system. Tax authorities are known to issue severe penalties for those who do not comply with the law. 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.
Your Argentina accountant can help you plan and manage your taxes so that you have the least amount of tax possible. A provider with international experience can be a good choice if you have operations in other countries. They will have the knowledge and experience to help clients manage their tax burdens.
Argentina has many double taxation agreements, including with Australia, Canada, Russia and several European and South American countries. Your accountant can help you to take advantage of these agreements where applicable.
Your accounting firm in Argentina can help you with taxes
Your Argentina accountant will be able help you with the following taxes.
Value-added tax (VAT), Argentine VAT is 21% on most products and services. However, certain goods or services like gas, energy and water supply are subject to a 27% VAT rate. VAT is lower for food, medical equipment, books, and transport at 10.5%.
Corporation tax: A recent reform has resulted in a corporation tax of between 25% and 35%. Corporations pay a 25% tax rate on profits up to 5,000,000 Argentinian Pesos (approximately 51,000 at the time of publication); a 30% tax rate on profits between 5 and 20 million Argentinian Pesos; and a 35% tax rate on profits exceeding 20 million Argentinian Pesos (approximately $25,000).
Foreign transactions are subject to tax Based on a Mercosur-established international trade agreement, the Common External Tariff, the rates are set at between 0% to 30% depending on the product/service.
Property Tax Property tax is set at the state level in Argentina for both real estate and automobiles. This can make it difficult to manage your property taxes. You may want to consult an accountant before you purchase property in Argentina.
Wealth taxIn part, the new wealth tax was put into effect in December 2020 to help the country recover from the chaos caused by the global pandemic. The new wealth tax requires residents who have assets exceeding $2.4 million to pay a 2% tax.
Social security tax: is set to 23%. However, an entity can apply for classification as a small or medium-sized business (SME) and be eligible for a lower rate of between 19.5% – 19.8%.
Gross Income TaxThis rate is set at the state-level and is calculated based solely on individual sales. It has a general rate of 3.3%. It can be set at 1% to 8% depending on the product or service.
Other taxes Non-essential products like mobile phones and consumables that pose a public health risk, such as tobacco and alcohol, are subjected to a 60% tax rate.
Biz Latin Hub can be your Argentina accountant
Biz Latin Hub’s multilingual team is available at accounting & taxationExpert support is available for your Argentina operations by professionals with the right knowledge and expertise. Our complete back-office solution portfolio, which includes company formation, visa processing and recruitment, can make us your single point of contact to help you enter and do business in Argentina. We also have teams in 17 other markets in Latin America and the Caribbean.
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