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Apr 20, 2010
Living There

INDIVIDUAL TAXATION

Residents are taxed on their worldwide income.

Foreign nationals who stay in Argentina with a permanent visa (for immigration purposes) or with a temporary visa for at least twelve months are deemed to be residents and therefore subject to tax on their global income.

INCOME TAX

There are four categories of income:

  1. income from land (rental income and any other income realized from the ownership of immovable property
  2. income from personal capital assets (derived from royalties and bonds, income from movable property, etc)
  3. income derived by enterprises (income by corporations and partnerships) and any other income not included in other categories
  4. income from employment

Income tax is levied on total income less applicable deductions and allowances. Income is taxed at progressive rates.

INCOME TAX

TAXABLE INCOME, ARS (US$) TAX RATE
Up to 10,000 (US$2,604) 9%
10,000 - 20,000 (US$5,208) 14% on band over US$2,604
20,000 - 30,000 (US$7,813) 19% on band over US$5,208
30,000 - 60,000 (US$15,625) 23% on band over US$7,813
60,000 - 90,000 (US$23,438) 27% on band over US$15,625
90,000 - 120,000 (US$31,250) 31% on band over US$23,438
Over 120,000 (US$31,250) 35% on all income over US$31,250
Source: Global Property Guide

The following personal allowances, family allowances, and expense allowances are deductible when computing the taxable income.

Personal Allowances

Basic personal allowance ARS7,500 (US$2,344)
Special allowance for employees ARS36,000 (US$11,250)
Special allowance for the self-employed ARS7,500 (US$2,344)

Family Allowances

Spouse (dependent on tax payer) ARS8,000 (US$2,604)
Each dependent child (less than 24 years old) ARS4,000 (US$1,327)

Expense Allowances

Gifts to government and other institutions up to 5% of taxable income
Funeral expenses ARS996 (US$259)
Qualifying life insurance premiums ARS996 (US$259)
Contributions to medical aid for
taxpayer and immediate relatives
Up to 5% of net income
Social security contributions
Health expenses (up to 40% of expenses) Up to 5% of the net income
Interest on mortgages ARS20,000 (US$5,208)
Domestic services ARS7,500 (US$2,344)

CAPITAL GAINS
Taxation of capital gains derived by residents depends on the owner, activity, and property involved. Only certain items of capital gains are qualified as income and are taxed at income tax rates.

Transfer Tax

Capital gains derived by residents from transfers of real property located in Argentina are subject to transfer taxes. The standard rate for the transfer of properties is 1.5%. The tax base is the transfer price or the market value of the property.

When selling one primary residence in order to acquire another, it is also possible to include the option of not paying any capital gains tax in the deed of sale. The buying of the new property may precede the sale but the two transactions must take place within one year.


PROPERTY TAX


Tax on Personal Assets (Impuesto sobre los bienes personales)

Residents are liable to pay this tax on their net wealth, provided their aggregate amount of assets exceeds ARS305,000 (US$79,427). The tax rates are as follows:

Tax on Personal Assets

TAXABLE ASSETS, ARS (US$)
TAX RATE
Up to 305,000 (US$79,427)
nil
305,000 – 750,000 (US$195,313)
0.5%
750,000 – 2,000,000 (US$520,833)
0.75%
2,000,000 – 5,000,000 (US$1,302,083)
1%
Over 5,000,000 (US$1,302,083)
1.25%
Source: Global Property Guide

Municipal Taxes

Local governments also assess the cadastral value of the real estate and levy a real estate tax. The taxable base for the local taxes will not exceed 80% of the property’s market value. The tax rates 1.20% for rural properties, 1.35% for sub-rural and sub-urban properties, and 1.50% for urban properties.

The municipality also imposes a charge of 0.55% for lighting, sweeping and cleaning services.




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