Argentina: Living There - Tax Issues
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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:
- income from land (rental income and any other income realized from the ownership of immovable property
- income from personal capital assets (derived from royalties and bonds, income from movable property, etc)
- income derived by enterprises (income by corporations and partnerships) and any other income not included in other categories
- 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$3,317) | 9% |
| 10,000 - 20,000 (US$6,633) | 14% on band over US$3,317 |
| 20,000 - 30,000 (US$9,950) | 19% on band over US$6,633 |
| 30,000 - 60,000 (US$19,900) | 23% on band over US$9,950 |
| 60,000 - 90,000 (US$29,851) | 27% on band over US$19,900 |
| 90,000 - 120,000 (US$39,801) | 31% on band over US$29,851 |
| Over 120,000 (US$39,801) | 35% on all income over US$39,801 |
| 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$2,488) |
| Special allowance for employees | ARS36,000 (US$11,940) |
| Special allowance for the self-employed | ARS7,500 (US$2,488) |
Family Allowances |
|
| Spouse (dependent on tax payer) | ARS8,000 (US$2,653) |
| 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$330) |
| Qualifying life insurance premiums | ARS996 (US$330) |
| Contributions to retirement insurance plans | ARS1,261 (US$418) |
| 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$6,633) |
| Domestic services | ARS7,500 (US$2,488) |
The personal and family allowances are reduced depending on the taxpayer’s taxable income. The reduction rates are as follows:
Allowable Reduction Rate |
|
| NET INCOME, ARS (US$) | |
| Up to 91,000 (US$30,182) | |
| 91,000 – 130,000 (US$43,118) | |
| 130,000 – 195,000 (US$64,677) | |
| 195,000 – 221,000 (US$73,300) | |
| Over 221,000 (US$73,300) | |
| Source: Global Property Guide | |
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$101,161). The tax rates are as follows:
Tax on Personal Assets |
|
| TAXABLE ASSETS, ARS (US$) | |
| Up to 305,000 (US$101,161) | |
| 305,000 – 750,000 (US$248,756) | |
| 750,000 – 2,000,000 (US$663,350) | |
| 2,000,000 – 5,000,000 (US$1,658,375) | |
| Over 5,000,000 (US$1,658,375) | |
| 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.
Argentina - more data and information
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