Withholding taxes apply in many circumstances:
Money withheld must be transferred to the fiscal authority (AFIP – Administración Federal de Ingresos Públicos) twice a month.
Interest paid to non-residents is imposed when funds are used in activities in Argentina. The tax rates applied varies between 15.05% and 35%. Grossing up is required when a local payer assumes withholding as a cost.
Withholding tax reaches 21% or 28% depending on the technical service rendered. If the service cannot be obtained within Argentina, 21% is applied. Grossing up is required too, under conditions described above.
Dividends paid from local companies are tax free, according to the integration system adopted by our corporate income tax, where income tax is applied only on corporations (including S.A. and S.R.L.).