Tax System in Argentina | ConectNext

Argentina operates a complex, multi-layered, and evolving tax system administered primarily by the Federal Administration of Public Revenue (AFIP). The framework integrates national, provincial, and municipal taxes, forming one of the most diversified fiscal architectures in Latin America. Recent reforms aim to increase efficiency, broaden the tax base, and stabilize public finances amid macroeconomic volatility.

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Overview of Argentina’s Economic Landscape

Fiscal Structure and Main Taxes

Argentina’s fiscal system spans three levels of government.

Table 1. Main Components of the Argentine Tax System

Level of Government	Main Taxes / Duties	Notes
National	Corporate Income Tax, Personal Income Tax, VAT, Excise Taxes, Personal Asset Tax	Administered by AFIP
Provincial	Gross Income Tax (Ingresos Brutos), Stamp Tax	Key burden on business operations
Municipal	Business fees, safety & hygiene taxes	Local levies vary by jurisdiction
Parafiscal	Social security, health funds, family allowances	Mandatory contributions

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Corporate Income Tax

Corporate taxation applies globally for resident companies and only Argentine-source income for non-residents. Since 2021, Argentina operates a progressive corporate tax rate based on annual taxable income.

Table 2. Corporate Tax Framework (2025)

Taxable Profit Bracket (ARS)	CIT Rate	Notes
Up to 101.7 million	25%	SME-friendly bracket
101.7 to 1,016.8 million	30%	Mid-tier rate
Above 1,016.8 million	35%	Applies to large corporations
Dividend withholding	7%	Applied on profit distributions
Effective corporate burden	~35–37%	For high-income companies

Argentina offers accelerated depreciation, productivity incentives, and sector-specific benefits (e.g., automotive, knowledge-based services).

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Value-Added Tax and Indirect Taxes

The VAT regime is essential to Argentina’s fiscal structure.

Table 3. Indirect Tax Structure

Tax	Rate	Description
VAT – Standard	21%	Applies widely to goods and services
VAT – Reduced	10.5%	Food staples, medical items, newspapers
VAT – Zero-rated	0%	Exports (refunds on input VAT)
Excise Taxes	Variable	Fuels, alcohol, tobacco, luxury goods
Gross Income Tax	3%–5%	Provincial tax on revenues; major burden

The Gross Income Tax (Ingresos Brutos) is often cited as one of Argentina’s most distortionary taxes due to its cascading effect across supply chains.

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Personal Income Tax

Individual taxation applies differently to residents and non-residents.

Table 4. Personal Income Tax Framework

Category	Rate / Rule	Details
Resident PIT	5%–35%	Progressive schedule
Non-resident income	35%	Flat rate on Argentine-source income
Tax base	Labor income, capital gains, rentals	Broad taxable categories
Personal Asset Tax	0.5%–1.75%	Applies to global assets above threshold
Deductions	Pension, mortgage interest	Limited and regulated

Argentina maintains double-taxation treaties to reduce international tax exposure.

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Social Contributions and Payroll Taxes

Payroll obligations are among the highest in the region.

Table 5. Social Contribution Framework

Contributor	Approx. Share	Purpose
Employers	26%–28% of payroll	Social security, family allowances, health
Employees	~17% of salary	Pensions, healthcare
Monotributo regime	Fixed monthly fee	Simplified system for small taxpayers

These obligations significantly influence labor-intensive sectors and overall employment costs.

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Tax Administration and Compliance

AFIP manages national tax collection, oversight, and enforcement.

Table 6. Compliance Obligations

Requirement	Frequency	System
Corporate income tax return	Annual	AFIP
VAT filing	Monthly	Digital portal
Payroll contributions	Monthly	AFIP integrated system
Electronic invoicing	Mandatory	Factura Electrónica
Provincial filings	Variable	Each province has its own agency

Persistent non-compliance can result in fines, interest, or suspension of tax identification codes (CUIT).

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Implications for Investors

Argentina’s overall tax burden is among the highest in Latin America due to the combination of:

• Progressive corporate taxation up to 35%
• VAT at 21% with limited exemptions
• Provincial Gross Income Tax with cascading effects
• Significant payroll contributions

Nonetheless, investors can access incentives in strategic sectors:

• Renewable energy
• Knowledge-based services
• Automotive industry
• Export manufacturing

Export rebates, input VAT refunds, and accelerated depreciation offer opportunities to improve competitiveness. Ongoing simplification reforms aim to enhance predictability and reduce administrative burdens in the medium term.

Sources

OECD (2025): Revenue Statistics in Latin America and the Caribbean.
World Bank (2025): Argentina Fiscal Policy and Public Finance Update.
Inter-American Development Bank (2024): Tax Administration and Investment Framework in Argentina.
AFIP (2025): Corporate Income Tax Brackets and Annual Regulatory Report.
Ministry of Economy of Argentina (2024): Fiscal Reform and Macroeconomic Policy Statement.