Accountancy in Argentina

>> Withholding Taxes in Argentina

Withholding taxes apply in many circumstances:

  1. Withholding tax applies on payments made by a resident to a non-resident.
  2. Withholding tax for individuals: When a local company pays salaries over a minimum, income tax is retained.
  3. Withholding tax on other payments is considered as paid in advance of some taxes, e.g. income or corporate income tax, VAT, sales tax and social contributions.

Money withheld must be transferred to the fiscal authority (AFIP – Administración Federal de Ingresos Públicos) twice a month.

  1. Argentine sourced income taxes are imposed for non-residents.

Interest

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.

Royalties

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

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.).


Latest version updated 20th December 2017

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