Argentina Income Tax Rates and Rules

Argentina’s personal income tax, Impuesto a las Ganancias, impacts individuals based on their residency status. The system is designed to capture income earned both within and outside of Argentina, but its application differs significantly for residents versus non-residents. This distinction is important for understanding tax obligations under Argentine law.

The tax framework is administered at the federal level and uses a progressive rate structure. For those living in the country, it is a comprehensive system, while for individuals with economic ties to Argentina who live elsewhere, the tax is more narrowly focused.

Determining Tax Liability in Argentina

An individual’s requirement to pay income tax in Argentina hinges on their residency status, which is categorized as resident, non-resident, or foreign beneficiary. A person is considered a tax resident if they are an Argentine national, a foreign national who has obtained permanent residency, or a foreigner who has resided in the country for 12 consecutive months.

The primary consequence of being a tax resident is the scope of taxable income. Residents are subject to tax on their worldwide income, meaning all income they earn, regardless of its geographic source, is reportable in Argentina. To prevent double taxation, residents may claim a foreign tax credit for taxes already paid to another country on that foreign-source income.

Conversely, non-residents are taxed on a narrower basis, with liability restricted to income from Argentine sources only. This includes salary for work performed within Argentina’s borders or rental income from a property located in the country.

A special category, “foreign beneficiaries,” applies to individuals like artists or professionals working temporarily in Argentina for less than six months. They are subject to a final withholding tax on their Argentine-source earnings, which simplifies their compliance.

Calculating Taxable Income

The process of calculating taxable income begins with aggregating all assessable income from sources like employment, professional services, and investments. This includes salary, bonuses, benefits, business earnings, rent, interest, and dividends.

Once gross income is determined, taxpayers can subtract deductions and allowances to arrive at their net taxable income. A primary deduction is the standard personal allowance, or non-taxable minimum, which for fiscal year 2024 is ARS 3,503,688.17. Additional allowances are available for dependents, including a spouse (ARS 1,015,579.74) and each child under 18 (ARS 512,160.65). Dependents must have resided in Argentina for more than six months of the tax year and have income below the non-taxable minimum to qualify.

Specific expenses can also be deducted, including contributions to social security, payments for domestic services, and contributions to third-party medical schemes. Taxpayers can also deduct 10 percent of housing rental payments if they do not own real estate, and expenses for dependents’ educational services up to 40% of the non-taxable minimum. Donations to registered charities are also deductible, subject to limits.

For employees, these deductions are typically reported to their employer through Formulario 572, which allows the employer to adjust monthly income tax withholdings accordingly. Self-employed individuals account for these deductions when they file their annual tax return.

Applicable Tax Rates and Brackets

After determining the net taxable income by applying all deductions and allowances, Argentina’s progressive tax rates are applied. This system means that as income increases, it is assessed in successive brackets with a higher marginal tax rate.

For self-employed individuals, the income tax rates for the 2024 fiscal year begin at 5% and climb to a top rate of 35%. This maximum rate applies to annual taxable income that exceeds ARS 36,450,000.

The income tax brackets for self-employed individuals in 2024 are as follows:

• ARS 0 to ARS 1,200,000: 5%
• ARS 1,200,000 to ARS 2,400,000: ARS 60,000 + 9% on the excess
• ARS 2,400,000 to ARS 3,600,000: ARS 168,000 + 12% on the excess
• ARS 3,600,000 to ARS 5,400,000: ARS 312,000 + 15% on the excess
• ARS 5,400,000 to ARS 10,800,000: ARS 582,000 + 19% on the excess
• ARS 10,800,000 to ARS 16,200,000: ARS 1,608,000 + 23% on the excess
• ARS 16,200,000 to ARS 24,300,000: ARS 2,850,000 + 27% on the excess
• ARS 24,300,000 to ARS 36,450,000: ARS 5,037,000 + 31% on the excess
• Over ARS 36,450,000: ARS 8,803,500 + 35% on the excess

The tax system for employees has undergone recent changes. A special “cedular regime” was in place for the first half of 2024, but from July 2024, the previous withholding mechanism was reinstated and updated.

The Argentine Wealth Tax

Separate from the income tax is the Impuesto sobre los Bienes Personales, a federal wealth tax on an individual’s personal assets held on December 31st of each year. Similar to the income tax, its application depends on residency status. Tax residents are liable for this tax on their worldwide assets, while non-residents are only taxed on assets located within Argentina.

The tax applies to a wide range of assets, including real estate, vehicles, bank accounts, and investments. For the 2023 fiscal year, a tax-free minimum threshold was set at ARS 100,000,000, and an individual’s primary residence is exempt up to a value of ARS 350,000,000. Assets valued above these thresholds are subject to a progressive tax rate schedule, with rates for the 2023 tax year ranging from 0.50% to 1.50%.

Legislation in June 2024 set new, unified rates for domestic and foreign assets that will gradually decrease through 2027. The law also introduced a benefit for “compliant taxpayers”—those who met all tax obligations from 2020 to 2022—offering them a rate reduction.

The 2024 law also created a voluntary program allowing taxpayers to make a single, advance payment to cover their wealth tax obligations through the 2027 fiscal period, providing fiscal stability until 2038.

Filing and Payment Procedures

The administration of federal taxes in Argentina is handled by the Administración Federal de Ingresos Públicos (AFIP). To interact with the tax system, individuals must obtain a unique tax identification number: a Clave Única de Identificación Tributaria (CUIT) for self-employed individuals or a Código Único de Identificación Laboral (CUIL) for employees.

For most employees whose only source of income is their salary, the income tax is handled through employer withholdings, and they are not required to file an annual tax return. However, self-employed individuals, or those with other sources of income, must file an annual income tax return. The primary form for this declaration is submitted electronically through the AFIP’s secure online portal, which requires a personal fiscal code (clave fiscal) for access.

The deadline for filing the annual return and paying any balance falls in June of the year following the tax year. For the 2023 tax year, these deadlines were extended to September 2024, with dates staggered based on the taxpayer’s CUIT. Self-employed workers are also required to make five advance payments throughout the year toward their current year’s tax liability.

Payment can be made by generating a Volante Electrónico de Pago (VEP), an electronic payment ticket, from the AFIP website. This VEP is then used to complete the payment through an authorized bank’s online portal.