The aforementioned Cedular Tax was subsequently repealed by the “Palliative and Significant Fiscal Measures” law, approved by the Chamber of Deputies on 28 June 2024, and published in the Official Bulletin on 8 July 2024. This law introduced significant modifications to the income tax regime, effectively eliminating the Cedular Tax and introducing other changes to the taxation of earnings. Until August 2024, the non-taxable minimum had been raised to ARS1.8 million for single individuals and to ARS2.2 million for married individuals with children, with tax rates returning to the range of 5% to 35%. From September 2024 onward, the non-taxable minimum was raised to ARS2,040,000 for single individuals and to ARS2,705,000 for married individuals with children, with tax rates remaining in the range of 5% to 35%. The update of the non-taxable minimum and deductions will be adjusted first quarterly and then on a semiannual basis according to the Consumer Price Index (IPC).
Self-employment income. Self-employment and business income is taxable, regardless of the recipient’s nationality, the place of payment or where the contract was concluded.
Investment income If a company pays a dividend in excess of its accumulated taxable income, the excess is subject to a final withholding tax at a rate of 35%. This tax applies to dividends derived from income accrued in fiscal periods beginning before 1 January 2018. Under the December 2017 tax reform, withholding tax is imposed on dividends distributed by Argentinian companies to Argentinian individuals and foreign shareholders at a rate of 7%. The tax operates as a “sole and definitive tax payment.” It is imposed in addition to the 35% equalization tax described above. Dividends from foreign corporations paid to residents are taxable at regular tax rates.
Royalties and income derived from renting real property are taxed as ordinary income.
Interest is taxed as ordinary income, except interest from certain bank deposits in Argentina, such as saving accounts, which is exempt from tax. Interest from bank deposits paid to nonresidents is exempt from Argentine tax only if the income is also exempt from foreign tax.
For residents and nonresidents, interest derived from term deposits in Argentinean pesos, public bonds (government securities, treasury bills and others), corporate bonds, mutual funds and other securities issued by Argentina are exempt from tax. However, interest derived from term deposits in dollars allocated in Argentina is taxable for residents at the progressive income tax rates (5% to 35%) and for nonresidents (the 35% rate will apply to 43% of the collected interest).
Under Section 90.5 (Schedular Tax) of the Income Tax Law, gains derived from the sale of real estate purchased on or after 1 January 2018 are taxable at a rate of 15%. However, if the property is the taxpayer’s home, the sale is exempt from tax.
Directors’ fees. Directors’ fees are taxed as self-employment income to the extent that they are deducted by the payer company (allowable up to the greater of 25% of book profit or ARS12,500 per director per year). The portion of fees not deductible at the
Also, an Incremented Deduction of ARS16,817,703.23 is granted for employment income.
Furthermore, when the application of the increased special deduction is appropriate, 1/12 of the personal deductions will be added as a special deduction.
Nonresidents residing in Argentina longer than six months in a calendar year may claim the deductible expenses actually incurred and exemptions available to residents.
The following are the income bands and tax rates for assignees who are not considered to have board of director (director of legal entity) positions under the Cedular Tax regime (while this regime was in effect).
The following are the annual income bands and tax rates for assignees who are out of the Cedular Tax (directors of legal entities and all employes from 1 July 2024 onward).
Nonresidents residing temporarily in Argentina, that is, for six months or less, are subject to final withholding tax. A standard deduction of 30% of compensation is allowed for expenses incurred in earning income. The remaining 70% of compensation is taxed at a flat rate of 35%, with no other allowable deductions or exemptions, resulting in an effective withholding tax rate of 24.5%.
Relief for losses. Business losses of self-employed persons may be carried forward for five years. Foreign-source business losses may offset foreign-source income only.
B. Other taxes
Transfer tax. Under the previous regulations, sales of real estate were subject to a transfer tax at a rate of 1.5% on the sales price, which was only applicable to properties purchased before
1 January 2018. However, with the introduction of the new Palliative and Significant Fiscal Measures Law, the 1.5% transfer tax affecting the sale of real estate bought prior to 31 December 2017 has been abolished.
Personal assets tax. The Palliative and Significant Fiscal Measures Law approved by the Chamber of Deputies in Argentina on 28 June 2024, brought changes to personal assets taxation. Individuals who have total assets subject to tax of up to ARS100 million and/or who have a real estate destined to be their place of living of up to ARS350 million are exempt from the personal assets tax. Individuals who are deemed to be tax resident in Argentina according to the definition in the income tax law of Argentina and who have assets totaling more than ARS100 million are required to pay the personal assets tax. Furthermore, if the annual total gross compensation exceeds ARS15,917,863.58, the individual is still obligated to file the Wealth Tax Return.
Moreover, the tax rate, which is applied once the non-taxable minimum (the tax table with the different scales) is exceeded, was reduced from 1.75% or assets in the country and 2.25% for assets abroad. to a range that ranges from 0.5%% to 1.5%, and the distinction between both types of assets (in the country and abroad) was eliminated.
The tax rates for the tax are shown below.
The following are the rates for the 2023 fiscal year.
The following are the rates for the 2024 fiscal year.
The following are the rates for the 2025 fiscal year.
the Argentine pension fund and health care system if certain conditions are met.
To provide relief from double social security taxes and to assure benefit coverage, Argentina has entered into totalization agreements with the following countries.
Belgium Italy Southern Common Market
Chile Luxembourg (Mercado Común del Sur, Colombia Peru or MERCOSUR) countries
Ecuador Portugal (Brazil, Paraguay and France Slovenia Uruguay)
Greece Spain
Argentina has also entered into the Ibero-American Multilateral Agreement on Social Security, which is in force with respect to Bolivia, Brazil, Chile, Ecuador, El Salvador, Paraguay, Peru, Portugal, Spain and Uruguay.
D. Tax filing and payment procedures
The tax year for individual taxpayers is the calendar year. Tax returns must be filed between 11 June and 13 June (depending on the taxpayer’s registration number) of the following year unless the taxpayer’s only income is from employee compensation. No extensions to file tax returns are allowed. However, for the 2023 fiscal year there was an exceptional extension to those due dates, which are on the 18th, 19th and 20th of September according to the assigned taxpayer’s registration number.
National and foreign employees must file a personal assets tax return for informational purposes if their gross compensation exceeds ARS15,917,863.58 per year. The deadline for tax returns for informational purposes is 30 June. However, for the 2023 fiscal year, there was an exceptional extension in the deadline, which was 30 September.
Self-employed taxpayers must register with the tax authorities. Tax returns are filed annually in June, declaring earnings for the previous calendar year.
Individuals with non-wage income, including self-employment income, must make advance tax payments bimonthly from August to April, based on the previous year’s tax. Under a withholding system for payments to resident individuals, withholding is imposed at various rates on income exceeding a minimum threshold. Amounts withheld are treated as advance payments.
Advance payments are also required for purposes of the personal assets tax (see Section B).
For married couples, a wife is taxed separately on income derived from personal activities (including employment, self-employment and business), on assets acquired before marriage and on assets acquired during marriage with income earned from personal activities.
Nonresidents subject to the 35% withholding tax are not required to file tax returns.
Resolution No. 137-E/2017 (March 2017) issued by the Interior Ministry establishes an exemption to transitory visas for individuals from member jurisdictions of the Organisation for Economic Co-operation and Development (OECD) who hold ordinary passports issued by their country of nationality or valid travel documents according to the MERCOSUR regulations. The exemption applies to transitory matters (only business activities) of up to 10 days.
Brazilian citizens can enter Argentina under the Sao Borja Treaty to carry out technical or business activities without a visa for up to 90 days. An extension for another 90 days can be requested at the National Immigration Office for authorization to remain in Argentina for a maximum of 180 days.
Temporary residence
Labor contract residence. Labor contract residence applies to foreigners who are regularly employed by a local company for a long period. This type of residence is valid for one year and may be extended indefinitely.
Intracompany transfer residence. Intercompany transfer residence applies to employees who are transferred from a home country company to an Argentine company for a long period. This type of residence is valid for one year and may be extended indefinitely.
Family reunification with temporary resident relative. Family reunification with temporary resident relative residence applies to foreigners who have a relative with temporary residence in Argentina. This type of residence is valid for the period of the temporary residence of the relative and may be extended indefinitely.
Rentier residence. Rentier residence applies to proprietors or pensioners who receive money in Argentina. This type of residence is valid for up to one year and may be extended indefinitely.
Study residence. Study residence applies to foreigners entering the country with the intention of carrying out studies at private or state-run establishments that are officially recognized. This type of residence is valid for up to one year and may be extended for the period of the course of study.
MERCOSUR temporary residence. MERCOSUR temporary residence applies to foreigners born in the MERCOSUR countries (Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela) who will work for a long period. This type of residence is valid for two years and may be extended indefinitely.
Investors. The immigration office considers an investor to be a foreign national that would make a minimum investment of ARS1,500,000 in a productive, commercial or service-supplying activity in Argentina or who convincingly proves that he or she has ARS1,500,000 destined for investment in these types of activities. Prior experience in the relevant activities is desirable. The investor visa is valid for up to one year and may be extended indefinitely.