AFIP - Administración Federal

About AFIP

The “Administración Federal de Ingresos Públicos” (AFIP) is an autarchic agency formed in 1997 which main function is to enforce the tax and custom policy. The agency performs, among others, the following activities and functions:

	To enforce, collect and control taxes and incidental taxes pursuant to the provisions of the pertinent statutory rules.
	To levy taxes on the operations performed in the territory and jurisdictions where the national tax authority is entirely or partially empowered to exercise it.
	To levy taxes on imports and exports of goods and other operations governed by the pertinent custom rules and laws.
	To impose fines, extra charges, interests, security and any other incidental expenses that could arise from the enforcement and fulfillment of the statutory rules.
	To control International trade pursuant to the provisions of the pertinent statutory rules
	Classification of tariffs and assessed valuation of goods.
	All functions relating to its mission and the ones necessary for its internal management.

The “Administrador Federal de Ingresos Públicos” is the highest authority within the AFIP and he/she is appointed by the Executive Branch and endorsed by Congress.

AFIP is divided into three General Departments:

	Dirección General Impositiva: its main function is the enforcement, collection and control of national taxes.
	Dirección General de Aduanas: its functions, among others, are the collection of taxes levied on imports and exports, and control of international trade. Its own powers as well as the powers delegated to different organisms or the power delegated on the Customs enable them to perform these functions.
	Dirección General de Recursos de la Seguridad Social: the main tasks of this Department are to collect and control the resources that fund Social Security assistance. For that purpose, it is supported by other organizations and institutions that share complementary powers (for instance, the National Labor Department) with them.

Index

Tax legislation and administration

Income Tax

Personal Assets Tax

Presumptive Minimum Income Tax

Value Added Tax

Excise Taxes

Liquid Fuel and Natural Gas Taxes

Assessment and Collection of taxes

Interests, illegalities and penalties

Statutory period

Judicial Review

Tax legislation and administration

Enactment of Tax Legislation.

According to the Argentine Constitution, the National Congress shares its tax legislative powers with the provincial legislatures and with the legislature of the City of Buenos Aires. The power to impose taxes on imports and exports is vested solely in the National Congress consisting of the Chamber of Deputies and the Senate.

The bill is debated in the Chamber. After passing by the Lower House it is passed, with or without amendments, to the Senate where it is submitted to the same process of study, report, and debate. The Senate has the prerogative either to amend and return the bill to the Chamber of Deputies for further consideration or to approve and transmit it to the Executive Power. The Central Government can veto it, in which case it must be returned to the Congress where it can be passed by a two-thirds majority of each body. A bill becomes law after its promulgation. Similar procedures are followed in the provincial legislature.

Argentina does not have a "revenue code"; the different categories of taxes are governed by separate laws, which are frequently amended.

The Federal Government collects the income tax, personal assets tax, VAT, and excise taxes throughout the country and distributes an specific share of each tax, agreed upon beforehand, to each of the provinces. Moreover, the Government of Buenos Aires city and most of the provinces have subscribed an agreement that attempts to protect organisations with activities in more than one jurisdiction, from the multiple taxation that may result from the substantial Gross Receipts Taxes.

The tax laws and ordinances are complemented by tax regulations issued by Executive Power.

Tax Administration.

The Federal Administration of Public Revenue is responsible for the national taxes collection and administration. It is one of the major departments of the national government, and is directly responsible to the Ministry of Economy.

It is managed by the Federal Administrator, who is at the same level of a State Secretary. At the level immediate below there are two General Directors, one in charge of the General Tax Direction, who is responsible for the application of tax laws and collection of social security contributions, and the other in charge of the General Customs Direction. The Federal Administrator, the General Directors and Vice-Directors, and other public officers by means of delegation, are entitled "administrative judges", with the power to make assessments, impose fines, and settle disputes arising from assessments and claims for refund of taxes.

The Federal Administrator has the function of bringing out the meaning of the laws and decrees regarding taxes under its jurisdiction. Its interpretations, which are published in the Official Gazette, are binding upon the parties if not appealed to the Treasury Department within 15 days. When appealed, they are binding only when the final verdict is published. In addition to these interpretation, the rules issued by the Tax Court and the Civil Courts are sources of information for bringing out the meaning of the tax laws.

Custom House. Customs duties are exclusively federal. The General Customs Director has the power to promulgate rules, which, in some cases, cannot be appealed. In other instances, they may be appealed to the National Tax Court or to the Federal Judicial Courts. The customs regulations have more than 3,000 sections, which are similar in nature and structure to those applied in other countries. Customs duties are computed on the CIF (cost, insurance and freight) value on the merchandise. Imported merchandise is also subject to VAT and applicable excise taxes. As from September 23, 1981, the principal rule has been incorporated into a Custom Code (Law No. 22,415).

Income Tax

Introduction

According to the Argentine income tax law, residents are subject to income tax for their world wide income. Non resident are subject to tax only on income from Argentine source.

The principal forms of doing business in Argentina are basically those which exist in other countries; namely, sole proprietorship, various forms of partnership, Limited Liability Company, corporation, and branch of foreign company.

Resident corporations are those companies, partnerships, foundations, trusts, investment funds, registered in Argentina. Other companies, enterprises and one owner enterprises situated in Argentina are also considered resident.

Argentine corporations must submit annual returns together with their annual financial statements. Each return must show the adjustments required to arrive at taxable income or loss and the computation of the tax due. Returns must be submitted to the Administración Federal de Ingresos Públicos (Federal Administration of Public Revenue) within five months after the end of the fiscal year.

Corporations

Individuals

Corporations

Tax Year

The fiscal year is generally the calendar year, although there are no legal impediments for the corporations to establish the end of their fiscal year at any time of the calendar year, according to the corporate decision. The only condition in order to be considered a regular fiscal year is that it must cover 12 consecutive months. All formally registered companies, including corporations, keep accounting records and pay the Income Tax based on net income obtained during the accounting year.

Taxable base

Corporations must submit a tax return based on the data recorded on their financial statements. Net taxable income is assessed pursuant to the provisions of the law. The net income arising from the financial statements is subject to the adjustments set forth in the law.
Branches and other permanent establishments owned by foreign people or entities, must submit their accounting records separately from their parent companies and other branches and other permanent establishments or affiliated companies (subsidiaries), making the necessary amendments to assess their Argentine source tax result.

Deduction Items

The Income Tax Law allows deductions for those expenses necessarily incurred in for the purpose of obtaining and maintaining the income. In addition, the Income Tax Law contains rules for the treatment of specific expenses and specifically allows the deduction of certain items. Expenses incurred abroad are presumed to relate to foreign income and are not deductible unless the contrary can be proved. The expenses related to business income that is partially derived from a foreign source or is otherwise tax exempted, must be allocated between taxable and non-taxable income.

In order for an expense to be deductible it must be duly documented. However, if evidence is available to substantiate the disbursement as a necessary business expense, the deduction will be allowed and no withholding will be required.

The following items, among others, shall be deductible:

Expenses and other expenditures inherent to the business activities.

Penalties and allowances for bad debts in justifiable amounts pursuant to the industry's customs and conventions. The DIRECCIÓN GENERAL IMPOSITIVA (Internal Revenue Department) may establish the rules regarding the procedures to pay such penalties.

Organization expenses. The DIRECCIÓN GENERAL IMPOSITIVA shall accept that expenses incurred in the creation of all enterprises may be amortized over not more than FIVE (5) years or, at the taxpayer option, be entirely written off in the first year.

Commissions and expenses incurred abroad, as far as they are fair and reasonable.

Expenses or revenues incurred in for staff’s medical care, educational and cultural aid, subsidies to sport clubs and, in general, any expense related to the assistance of employees or workers. Bonus, Christmas Bonus, etc. paid to the staff within the terms in which, pursuant to the regulations, the affidavit corresponding to that year must be submitted shall also be deductible.

Actually made and credited representation expenses, up to an amount equivalent to ONE POINT FIFTY (1.5%) of the employees wages total amount paid during the fiscal year.

Fees paid to directors, statutory auditors or surveillance council members and the ones agreed upon for the managing partners pursuant to the limits set forth by law.

Interest is deductible notwithstanding the nature of the obligation or the financing term. However, there is a limitation for deduction of interest from business loans, under which sixty per cent (60%) of the interests (except for the interests from loans granted by individuals and interests paid to financial institutions situated in countries not subject to supervision standards of Basle Committee on Banking Supervision) are not deductible if it exceeds one of the following limits: total liabilities must not exceed 250% of total equity, or total interests must not exceed 50% of taxable net income computed before the deduction of interests.

Charitable contributions made to the following entities: National, provincial, and municipal treasuries; tax exempt entities; religious institutions; approved mutual-aid societies; charitable organizations; trade union associations; physical training institutions; educational, scientific, literary, and artistic institutions. As from 1992 the allowable deduction is limited to 5% of the net taxable profits. The excess cannot be carried forward to future fiscal years.

Section 82 through 84 and 87 - 20628 Act (t.o. 1997)

Non-deductible expenses

The following items, among others, shall not be deductible without distinction of categories:

Personal expenses and expenses regarding the maintenance of the taxpayer and his family, unless otherwise provided in sections 22 and 23.

The interests of the capital invested by the owner or partner of the companies included in section 49, (b), as well as the amounts withdrawn on account of incomes or wages and any other concept that implies a withdrawal on account of profits

Taxpayer's spouse or relative's salaries or wages

This law's tax and any other tax on vacant lands

Salaries or wages paid to board members, councils and any other organization operating abroad, and fees and other paid wages for technical-financial counseling or counseling of any kind requested abroad, and concerning amounts that exceed the limits set forth by the regulations on this matter

Amortization of goodwill, brands and similar assets

Gifs other than the ones mentioned in section 81, (c), food, or any other kind of generosity act in money or kind

Net losses from illicit operations

Compensations from the exploitation of brands and patents belonging to foreign people, concerning amounts that exceed the limits set forth in the regulations on that matter

Section 88 - 20628 Act (t.o. 1997)

Inventories

Inventories must be valued as follows:

Goods for resale, raw materials: cost of the last purchase within the latest 2 months before the end of the fiscal year.

Manufactured products: price of the last sale made within the two latest months before the end of the fiscal year, less selling expenses and the percentage of profit included in the price.

Livestock: market value or estimated cost revalued annually

When the personal property is considered merchandise its valuation is connected to the sale price.

The cost of purchased merchandise includes all expenses incurred in up to the time the goods are ready for sale. Interest on one `s own capital is not included in the cost of production. The taxpayer may write down the value of merchandise that is obsolete, damaged, or diminished in value for any reason, but the Administración Federal de Ingresos Públicos may question the values used in fixing the inventory amount. If the taxpayer is able to prove that the value of merchandise determined in accordance with the methods described above exceeds market value at the year-end, the latter value may be taken optionally.
Section 52 through 57 - 20.628 Act (t.o. 1997)

Ordinary Losses

In order to establish the net income, net results obtained during the fiscal year shall be compensated, within each category and among the different categories.

When there is a loss during a certain year, it can be deduced from the taxable income gained during the next two years. FIVE (5) years after the year when the loss occurred, no deduction can be made from the remaining of the loss in successive years.

Losses coming from activities which results shall not be considered from Argentine source may only be compensated with same kind of income.

Section 19 - 20.628 Act (T.O. 1997)

Exemptions

The following items are exempt from taxes:

Income from national, provincial or local Governments, and from offices thereof, except for the entities and organizations comprised in section 1 of the 22.016 Act.

Incomes from tax exempt entities pursuant to national laws, as long as the exemption agreed upon includes the tax herein referred to and if the income derives directly from the main activity that caused such entities’ exemption.

Earned income received by diplomats, consular agents and other foreign consular representatives in the Argentine Republic while performing their duties. Income derived from buildings owned by foreign governments and used as representatives office or residence and interests derived from deposit of same, should the interchange of rights be mutual.

Income derived from partnerships, foundations and social assistance civil entities, public health, charity, educational, scientific, literary, artistic, unions and physical or intellectual culture entities, as long as such income and the assets of the company are allocated to achieve the purposes of their creation, and in no case are directly or indirectly distributed among the partners. Those entities that obtain their income, totally or partially, from public shows, gambling, horse races and similar activities are excluded from this exemption.

The exemption referred to in the first paragraph is not applicable in the case of foundations and partnerships or trade unions that perform industrial and/or commercial activities

Interests derived from the following deposits made in institutions subject to the legal regime of financial entities:

	Saving account
	Special saving accounts
	Time deposits

Interests registered in administrative or judicial Courts in relation to work credits.

Income from securities, shares, bonds, bills, and other commercial papers issued or to be issued in the future by official entities pursuant to a general or special law or when the EXECUTIVE POWER so determines.

Amounts received by exporters of goods or services as reimbursements determined by the EXECUTIVE POWER in relation to taxes paid in the domestic market, that directly or indirectly affect certain products and/or their raw materials and/or services.

The aforementioned exemption shall include foreign institutions through reciprocity.

The share paid in surplus and the amounts earned by limited liability companies, limited partnerships and joint stock companies in relation to the capital of a general partner, due to the subscription and/or payment of shares whenever the amounts are higher than their face value.

Income from international non-profit legal entities, with main administrative office in the Argentine Republic.

Income from the abovementioned non-profit institutions that have been declared of national interest shall be included in this subsection even if they do not provide evidence of incorporation granted in the country or evidence of the existence of their main administrative office in the Argentine Republic.

Interests from promotion loans granted by international organizations or official foreign institutions, with the limitations set forth in the regulation.

Interests from loans granted by foreign entities to national, provincial or local Governments or to the Autonomous City of Buenos Aires, as well as those granted by the Central Bank of the Argentine Republic.

Income from purchase operations, change, exchange or disposal of stock, securities, bonds and other negotiable instruments obtained by natural persons residing in the country and decedents’ estate located therein, as long as they are not included in the provisions set forth in section 49 (c), excluding those derived from the aforementioned transactions, that have as their main object unlisted securities.

For the purposes of the exemption stated in the preceding paragraph, income shall be considered obtained by natural persons residing in the country when the ownership of the shares belongs to partnerships, companies, permanent companies, assets or commercial activities, domiciled or otherwise settled abroad, that due to their legal nature or bylaws have as their ordinary course of business investments outside the jurisdiction of the country of incorporation and/or cannot perform therein certain transactions and/or investments expressly determined in the legal or statutory provisions that regulate them, being the provisions in section 78 of the 2284 Decree dated 31st of October 1999 and its amendments, ratified by 24307 Act not applicable.

The exemption herein referred to shall also be applied to investment companies, trustees and other entities subject to taxation and/or tax obligations, organized as a result of privatizations, pursuant to the provisions set forth in Chapter II of 23696 Act and pertinent regulations, as long as it concerns transactions involving shares from Employee Stock Ownership plans, implemented pursuant to Chapter III of the aforementioned law.

Income from garbage collection and, in general, any kind of activity related to environmental sanitation and conservation -including counseling- obtained by entities and organizations included in section 1, 22016 Act provided that they reinvest said income in environmental-related activities.
Section 20 - 20628 Act (T.O. 1997)

Rate

The general rate was established at 35%.
Section 69 - 20628 Act (T.O. 1997)

Leasing

According to Argentine legislation, the tax treatment of income from leasing contracts is divided into three categories: finance leases, operating leases and installment selling leases. The differences in said treatments are based on the leasing company type and the characteristics of the leased assets.

Finance leases: the leasing company is a financial institution, a “financial trust” or an entity whose main object is the entering of leasing contracts. Leased assets may be personal property or real property (not intangible assets). The term of the contract must exceed 50%, 20% or 10% of the asset’s useful life respectively, in the case of personal property, non residential real property and housing. The contract must include the determination of the purchase option price. The taxable base is the difference between the rent paid and the cost of the asset (the cost is the acquisition value, less the portion of the cost attributable to the purchase option, divided by the years of the contract term).

Operating leases: The lessor may be any person with legal ability to enter into a contract (including entities qualifying for finance leases), however, the terms of the leasing contracts shall not exceed the minimum period required for finance leases. Leased assets include intangible assets and the purchase option price is determined upon delivery of same. The taxable base is the rent paid and the lessor may deduct depreciation of the leased property.

Leasing contracts regarded as installment selling leases: in the case of operating leases, when the purchase option price is lower than the cost for tax purposes according to Income Tax Law, the transaction will be considered as an installment sale from the beginning. The lessee may not deduct the rent paid, but he is allowed to deduct depreciation of the leased assets and the interest paid.

Insurance activity

Income from insurance activity covering assets situated in Argentina or persons resident in Argentina are considered Argentine source income.
The amounts derived as indemnities from insurance policies, are generally treated as compensation for a loss of capital in the hands of the recipient and are not subject to taxation. However, the surplus of insurance policy proceeds over the cost of the lost assets (less the value of the recovered property) is considered taxable income.

Foreign Exchange Differences

Differences in foreign exchange rates must be accounted for, when they arise from taxable transactions or from loans financing taxable transactions. These differences are considered Argentine source income.

Accounting for Income and Expenses

Income tax law does not require that any specific books be maintained, but taxpayers engaged in business must enclose, together with tax returns, a copy of their annual audit report, balance sheet and profit and loss statement, certified by a public accountant. The Commercial Code stipulates several accounting books and sets forth that these books must be bound, the pages numbered consecutively, the transactions entered clearly and in chronological order, and the required books must be notarized by the Public Registry of Commerce.

Subsidiaries and branches of foreign-owned entities operating in Argentina must keep their accounting records separate from those of their parent companies, and make the necessary adjustments to determine their actual net income from Argentine source. Should this situation not be observed, the Administración Federal de Ingresos Públicos may determine the existence of only one economic unit and make its own assessment of taxable income.

Long-Tern Contracts and Instalment Sales

In the case of building, rebuilding and repairs of any nature for third parties, when the operations that generate the profit comprise more than one fiscal year, their gross income must be reported pursuant to any of the following methods, at the taxpayer's option:

a)	Assign to each fiscal period the percentage of the payments received during the year that corresponds to the percentage of gross income estimated to be earned on the completion of the building
b)	Assign to each fiscal period the gross profit resulting from the total amount to be charged less the expenses allocable to the works performed.

Should the aforementioned profit assessment be difficult or not plausible, the gross profit derived from the construction may be estimated following a process similar to the one stated in subsection a).
If a construction project covers less than 1 (one) year, but the construction period overlaps two taxable years, the income may be reported on a completed-project basis.

If appropriate, the DIRECCIÓN GENERAL IMPOSITIVA (Internal Revenue Department) may authorize the aforementioned treatment for those works that take more than ONE (1) year to be finished, when such delay is caused by special circumstances (strikes, lack of material, etc.).

Once the method is chosen, it must be applied to all works, etc. performed by the taxpayer and it may not be changed without prior written consent by the DIRECCIÓN GENERAL IMPOSITIVA, which shall determine as from which fiscal period the method may be changed.

Section 74 - 20628 Act (T.O. 1997)

Foreign beneficiaries

When net profits of any type are paid to organizations, companies or any other foreign beneficiary, unless otherwise set forth by law, the payer must withhold thirty five percent (35%) of such profits and pay said percentage to the Administración Federal de Ingresos Públicos in one single payment.

Foreign beneficiary shall mean any person or entity which receives its income abroad, directly or through attorney-in-fact, agents, representatives or any other person in the country, and the person who although collecting the income in the country, does not prove permanent residence in it. In case of impossibility to withhold the aforementioned percentage, the income shall be in charge of the paying entity, without undermining its rights to call for the reimbursement from the beneficiary

Section 91 through 93 - 20628 Act (T.O. 1997)

For tax purposes, transactions between affiliated companies are considered as transactions between third parties, as long as the terms and conditions of the contracts are in agreement with the arm’s length principle. A loan or royalty agreement that does not meet the provisions of the pertinent laws will not be allowed to influence the assessment of taxable profits. The Central Bank must be informed of all loans, and approval of the proposed transaction by the Bank is required. Royalty agreements, and in general every technology transfer agreement, are subject to the following provisions:

They must be registered at the Instituto Nacional de la Propiedad Intelectual (National Institute of Intellectual Property).

Royalties for the use of brand names are not deductible against taxable income.

Royalty payments must be estimated and reported to the Instituto Nacional de Propiedad Intelectual..

When the terms and conditions of the transactions are not in accordance with arm’s length principle, they must be adjusted according to the transfer pricing rules.

Corporate change

When companies, goodwill and organizations in general and/or any kind of company are reorganized, the results that could arise as a consequence of the reorganization shall not be taxable pursuant to this law, as long as the surviving entity or entities continue with the activity of the company or companies restructured or any other related activity during a period of at least TWO (2) years from the date of reorganization thereof.

In such cases, tax rights and obligations from the reorganized subjects shall be transferred to the surviving entity or entities.
The reorganization must be reported to the DIRECCIÓN GENERAL IMPOSITIVA pursuant to its terms and conditions.
In cases where the kind of reorganization does not allow the total transfer of the reorganized company or companies, except in cases of spin-off, the transfer of tax rights and obligations shall be subject to prior consent of the DIRECCIÓN GENERAL IMPOSITIVA.

Section 77 and 78 - 20628 Act (T.O. 1997)

Income categories

Classes of incomes are grouped by law into four distinct categories: income from land, income from capital, business income, and income from personal services. The tax return reflects the net income for each category and, after the deduction of the allowed items, the taxable income or loss is assessed. All the information provided by taxpayers in their tax returns is subject to examination by the Administración Federal de Ingresos Públicos.

Income from land

It is first category income and must be declared by the pertinent real estate owner:

a)	Income in money or in kind from the leasing of urban or rural real property.
b)	Any kind of consideration received from third parties for usufruct, use, habitation or antichresis rights.
c)	The value of improvements on real property made by the lessee that constitute a profit for the owner but are not paid by him.
d)	Direct or real estate tax and other taxes that the lessee has paid.
e)	The amount paid by the lessee for the use of furniture and other fixtures or services provided by the owner.
f)	The rental value of real property used by the owner for recreation, vacation or similar purposes.
g)	The presumed rental value of real property transferred for no consideration or at an undefined price.

Income obtained there from by the lessee is also considered within the first category.

Section 41 through 44 - 20628 Act (T.O. 1997)

Income from Capital

Income from the second category:

a)	Income from securities, bonds, treasury bills, debentures, secured or unsecured loans, whether by public deed or not, and any amount resulting from the allocation of capital, notwithstanding its currency or payment conditions.
b)	Profits for the use of or the right to use personal property and for the transfer of rights, royalties and temporary benefits.
c)	Life annuities and income from shares on life insurances.
d)	Net profits from non-deductible contributions derived from the fulfillment of private annuities retirement insurance plan requirements managed by entities subject to the control of the SUPERINTENDENCIA DE SEGUROS (Supervising Authority), as long as they are not due to personal work.
e)	Net redemption of non-deductible contributions due to interruption of the aforementioned retirement insurance plans, except the provisions of section 101 when applicable.
f)	The amounts received as payment for negative obligations or for refraining from exercising an activity. However, this income shall be considered to be third or forth category, depending on the case, when it relates to a duty not to practice a business activity, industry, profession or to take a job.
g)	Interest distributed by cooperatives, except consumers' cooperatives. In the case of labor cooperatives, the provisions in section 79, (e) shall be applicable.
h)	Income received as one or more payments for the permanent transfer of goodwill, brands, letters patent, royalties and the sort, even if this kind of transactions are not regularly performed.
i)	Dividends and profits, in money or in kind, that the companies included in section 69 (a) distribute to its shareholders or partners
j)	Income originated by rights and obligations from derivative instruments and/or contracts. Likewise, when a group of transactions with derivative instruments and/or contracts equals another transaction or financial operation stated by this law, such group shall be treated pursuant to the standards applied to the equivalent transactions or operations.
k)	Income from purchase, change, exchange or transfer of shares.

Section 46 through 48 - 20628 Act (T.O. 1997)

Corporate Income:

Income mentioned in section 69, detailed as follows:

	The limited partners’ share of corporations and joint stock companies registered in the country.
	Limited liability companies, limited partnerships and the active partners share of joint stock companies. All of the companies must be registered in the country.
	Civil entities and foundations registered in the country, unless other tax treatment is hereby provided.
	Mixed investment companies in relation to taxable profits.
	Entities and organizations referred to in section 1 of the 22016 Act, not included in the aforementioned paragraphs, as long as no other tax treatment applies pursuant to section 6 thereof.
	Trusts registered in Argentina pursuant to the provisions set forth in the 24441 Act, except for those where the trustor is the beneficiary. The exception herein shall not be applicable in the cases of financial trusts or when the trustor-beneficiary is a subject comprised in title V.
	Investment funds registered in the country not comprised in paragraph 1 section 1 of the 24083 Act and its amendments. The abovementioned individuals are comprised within this subsection as from the date of creation or signing of the pertinent contract, as applicable.
	Commercial, industrial, farming, mining companies or any other business registered as a permanent company, owned by associations, partnerships or companies of any nature registered abroad or by natural persons residing abroad..

Partnerships registered in the country are not herein included, notwithstanding the application of the provisions in section 14 and its consecutive and concurrent sections.

Any income derived from any other kind of partnerships registered in the country or from one owner enterprises located in same.

Income derived from the activity of the broker, auctioneer, trustee and any other trade auxiliaries not expressly included within the forth category.

Income derived from the subdivision of land in plots for urbanization purposes; income from the building and sale of real property pursuant to 13512 Act.

Income derived from trusts where the trustor is the beneficiary, except in the cases of financial trusts or when the trustor-beneficiary is a subject comprised in title V.

Any other profits not included in other categories.

Section 49 and 69 - 20628 Act (T.O. 1997)

Personal Service:

This category includes salaries from public or private employment, professional fees, pension income and salaries paid to partner/manager of partnerships. In the case of dependent personal services, the tax is withheld by the employer, who must annually submit an informative tax return concerning employees’ taxable income, amounts withheld, tax-free income and income taxes withheld by other employers.

Personal allowances - only Spanish -

Income tax rates

APPENDIX III TO GENERAL RESOLUTION No. 2299
SCALE FROM SECTION 90 OF INCOME TAX LAW, 1997 TEXT AND ITS AMENDMENTS

SCALE SEGMENTS (SECTION 90)		ACCUMULATED AMOUNTS
ACCUMULATED NET TAXABLE INCOME		PAY
From more than $	to $	$	Plus %	Over the surplus in $
0	10.000	-	9	0
10.000	20.000	900	14	10.000
20.000	30.000	2.300	19	20.000
30.000	60.000	4.200	23	30.000
60.000	90.000	11.100	27	60.000
90.000	120.000	19.200	31	90.000
120.000	onwards	28.500	35	120.000

Section 90 - 20628 Act (T.O. 1997)

Tax payment

AFIP sets forth through General Resolutions the due dates to file tax returns and to pay the balances due for payment derived from Income Tax. The payment shall be performed by a bank deposit or electronic bank transfer, pursuant to the provisions of the general resolution. Moreover, taxpayers and income tax payers are required to assess and make advanced payments on account of the due amount. Natural persons make FIVE (5) advanced payments. The calculation basis for those that must make advanced payments is the tax determined by the previous fiscal period. This estimation basis admits deductions. A TWENTY PERCENT (20%) shall be applied on the resulting amount.

General Resolution No. 327/1999 and 2298/2007, AFIP.

Tax on Personal assets

For the purposes of this section, “taxable person” means:

The tax law recognises two categories of subjects and establishes the tax liability in two different ways:

a)	Individuals domiciled in the country and estates settled in it who are subject to tax on their assets situated within the country and abroad.
b)	Individuals domiciled abroad and estates settled abroad who are subject to tax on their assets situated within the country.

For the purposes of this section, diplomatic and consular agents, technical and administrative staff domiciled in the country and any other national civil servant and civil servants working for provincial or local commissions who, while exercising their functions, live abroad and the relatives living with them.

This tax applies on personal assets owned by any individual or estate at the end of each calendar year, including those affected to economic processes.

Section 17 - 23966 Act (T.O. 1997)

Assets situated within the country include: real property, mortgages on real property located in Argentina, ships, aircrafts, automobiles, registered personal property, money or cash deposits, bonds, shares and other securities issued by public or private institutions, loans, rights to use any patent, trade marks, industrial property, copyright of literary, scientific or other artistic work, etc.

Section 19 - 23966 Act (T.O. 1997)

On the other hand, assets situated abroad include: real property, mortgages on real property situated abroad, ships or aircrafts and automobiles registered abroad, shares and securities issued by foreign entities, cash deposits in foreign bank institutions, debentures issued by foreign entities, loans whose debtors are domiciled abroad, etc.

Section 20 - 23966 Act (T.O. 1997)

The following items are exempt from taxes:

Assets owned by members of foreign diplomatic and consular missions, their administrative and technical personnel and related persons in accordance with the limitations determined by applicable international agreements. Otherwise, the exemption will take place, with the same scope and limitations, on condition of reciprocity.

Intangible property (goodwill, trade marks, patents, franchise rights and similar property).

Property protected by franchises established in the 19640 Act.

Rural real property referred to in section 2 (e) of the Presumptive Minimum Income Tax Law.

Securities, debentures and other negotiable instruments issued by the national, provincial or local governments, and by the Autonomous City of Buenos Aires and the reprogrammed bank deposit certificates (CEDROS).

Term deposits, saving account deposits, special saving account deposits or any other kind of capital raising in Argentine and foreign currency made by the institutions comprised under the regime of the 21526 Act pursuant to the provisions set forth by the CENTRAL BANK OF THE ARGENTINE REPUBLIC,

Section 21 - 23966 Act (T.O. 1997)

The Personal Assets Tax Law establishes standards to value the different assets situated within and outside the country, to enable the payment of taxes.

Section 22 and 24 - 23966 Act (T.O. 1997)

Individuals whose assets, valued pursuant to the provisions of the Law, amount to THREE HUNDRED AND FIVE THOUSAND PESOS ($ 305.000) or less are exempt from this tax.

Section 24 - 23966 Act (T.O. 1997)

The tax to be paid by taxpayers shall be derived from the application of the tax rate assessed in each case on the total value of the taxable assets, excluding shares from the capital of any kind of company regulated by the 19550 Act, except from one owner companies and activities, which sum exceeds $ 305.000:

Amount	Tax rate
FROM $ 305.000 THROUGH $ 750.000	0.50%
FROM $ 750.001 THROUGH $ 2.000.000	0.75%
FROM $ 2.000.000 THROUGH $ 5.000.000	1.00 %
FROM $ 5.000.000 ONWARDS	1.25%

Section 25 - 23966 Act (T.O. 1997)

Every person domiciled in Argentina, whether individual, corporation or any other type of organization, who own, manage, use, custody, etc., any property subject to taxation owned by individuals domiciled abroad, must pay a final tax of 1.25% of the value of the assets.

Section 26 - 23966 Act (T.O. 1997)

Tax on presumptive minium income

A tax on the presumptive minimum income is established and applicable in the Argentine Republic, assessed on the basis of assets valued pursuant to the provisions set forth in the 25063 Act.

Section 1 - 25063 Act.

For the purposes of this section, “taxable person” means:

Companies domiciled in the country. These taxable individuals shall be considered as such as from the date of the incorporation or the entering of the pertinent contract;

One owner companies or activities pertaining to persons domiciled in the country. All one owner companies or activities which businesses comprise the extraction, production or trading of assets for commercial purposes are hereby included, as well as those that render services with the same aim, whether these services are technical, scientific or professional;

Entities and organizations referred to in section 1, 22016 Act not comprised in the aforementioned subsections;

Individuals and estates owning rural real property, in relation thereto;

Trusts registered in the country pursuant to the provisions set forth in the 24441 Act, except for the financial trusts mentioned in sections 19 and 20 thereof;

Investment funds registered in the country, except for those referred to in paragraph 1 section 1 of the 24083 Act and its amendments.

Permanent establishments domiciled or, should it be the case, located in the country for the development of commercial, industrial, farming, livestock, forestry, mining or any other activity for commercial purposes, related to the production of goods or rendering of services, owned by natural or artificial persons domiciled abroad, or net worth for special purposes, one owner exploitations or companies, or estates located abroad.

The taxable base includes taxed goods from country assets, which shall be valued pursuant to the legal standards.

Sections 4 through 7 and 10, 25063 Act.

Entities regulated by the Law of Financial Entities and insurance companies subject to the control of the National Supervising Authority, which reports to the Banks and Insurances Bureau from the Economic Policy Department of the Ministry of Economy, shall consider as their tax base twenty percent (20%) of the value of their taxable assets pursuant to the aforementioned sections. Likewise, Argentine livestock, fruits and products consignees will be taxed on forty percent (40%) of their assets pursuant to the provisions herein.
In the case of the abovementioned livestock, fruits and products consignees the aforementioned percentage shall only be applicable on the assets subject-matter of the activity of the consignment.
Section 11 - 25063 Act

Asset located abroad:

The following are considered assets permanently located abroad:

Real estate property located outside Argentina;

Interest in land on assets located abroad;

Ships and aircrafts registered abroad;

Automobiles licensed or registered abroad;

Personal property and livestock located outside Argentina; Regarding personal property and livestock transferred from the country, they shall be considered as situated permanently abroad when a period of at least six consecutive (6) months has elapsed before the date of the end of the fiscal year.

Securities issued by foreign entities and the partnership’s interest, including one owner companies, and other securities representing the capital stock of companies registered or located abroad;

Foreign bank deposits. When such deposits are originated in remittances made from the country, the minimum balance from the corresponding accounts shall be considered as being permanently settled abroad during the previous six (6) months before the end of the fiscal year. For such purposes, minimum balance shall be the sum of credit balances from all the abovementioned accounts, on the date when such sum has shown a smaller amount;

Debentures issued by entities or companies domiciled abroad;

Loans where the debtor is domiciled abroad, except for those guaranteed by rights on assets located in Argentina. When the loans correspond to price balances for the valuable consideration for assets transfer located in the country at the time of sale or if they arise as a consequence of activities developed in the country, they shall be considered as being permanently settled abroad after a period of more than six (6) months as from the date when they became due to the end of the fiscal year.

In all cases, local companies with foreign capital shall consider as assets debit balances from the account of the parent company, the owner, the branch, the bankruptcy, and the natural or artificial person that directly or indirectly controls it.

For the purposes of the aforementioned paragraph, local company with foreign capital shall be that which is considered as such pursuant to the provisions set forth in section 2 (3) of the Foreign Investment Law (t.o. 1993).
Likewise, debit balances of any origin from the owner or partner shall be considered as assets.
Sections 8 and 9 - 25063 Act

Exemptions

The following items are exempt from taxes:

Assets owned by persons subject to the mining promotion regime, set forth by the 24196 Act, and involved in the development of the activities thereof;

Assets exempted from income tax pursuant to national laws or approved international agreements in the terms and conditions thereof;

Shares and capital interests in the capital of other taxed companies, including one owner companies or activities and the contributions and advanced payment against future re-investments by shareholders, when there exist duly documented and irrevocable investment commitments to subscribe shares, except for those that accrue interests or updates in similar conditions as between independent parties, taking into account market normal practices;

Assets delivered by trustors, taxable individuals, to the trustees belonging to trusts similarly considered regarding the lien pursuant to the provisions of section 2 (f) and, in the case of financial trusts, share certificates and debt instruments, for the portion of the assets of the trust consisting of participation in other taxed entities that compose the assets of the trust fund;

Partnership’s shares from investment funds included in section 2 (g) and partnership’s shares from other investment funds, for the portion of the assets of the fund consisting of participation in taxed entities that compose the assets of the fund;

Taxed assets situated in the country assessed pursuant to the standards herein stated up to two hundred thousand pesos ($ 200,000). When there are assets taxed abroad, such sum shall be increased by applying the proportion of assets situated abroad over the total assets.

When the value of assets exceeds the abovementioned sum or the one estimated pursuant to the mentioned provisions, as the case may be, the taxed assets owned by the taxable individual shall be taxable in its entirety.

Total or partial exemptions regarding securities, bills, bonds and other negotiable instruments already in force at present or in the future pursuant to special laws, shall not impact on the taxpayers herein.

Rate

The tax will result from applying a one percent (1%) tax rate on the taxable base assessed pursuant to the provisions set forth in the law.
Income Tax assessed for the fiscal year already paid may be considered as a down payment against the Presumptive Minimum Income Tax, as long as the terms established to perform such calculation are fulfilled.

Section 13 - 25063 Act

Value added tax (VAT)

Scope:

The value added tax shall apply on:

Sales of personal property within the country by a taxable person acting as such;

The independent rendering of services within the country;

The import of personal property.

The rendering of services abroad, when the effective use of the services takes place in Argentina and the user is a registered VAT taxable person.

Section 1 - 20631 Act (T.O. 1997)

Any onerous transfer between natural or artificial persons, estates or any kind of entity implying the transfer of the ownership of personal property (sale, exchange, thing in lieu of payment, allocation due to dissolution of the corporation, social contributions, sales and judicial auctions, or any other act with the same aim, except expropriation), including self produced goods in the case of leasing and rendering of services exempt from tax, and the sale of those fixed to the ground at the time of transfer, as long as they are considered inventories.

Section 2 - 20631 Act (T.O. 1997)

Taxable Persons:

For the purposes of this section, “taxable person” means any person who:

a)	Regularly sells personal property, markets it occasionally or is heir or legatee of registered taxable persons; in this case, they would be taxable persons when they sell goods that would have been taxable while owned by the deceased person.
b)	Sells or buys in his name but on behalf of others.
c)	Permanently imports personal property in his own name, on behalf of himself or others.
d)	Is a building company which perform works included in section 3 (b), in any business organization form, including one owner companies. For the purposes of this subsection, building companies are those which, directly or through third parties, perform the mentioned works or carry out the total or partial sale of the real property for commercial purposes.
e)	Renders taxable services.
f)	Is lessor, in the case of taxable leases.

Section 4 - 20631 Act (T.O. 1997)

Chargeable Event

A chargeable event occurs:

a)	In the case of sales (including registrable goods) when the goods are delivered, when the pertinent invoice is issued, or when an equivalent act is performed, whichever happens first, pursuant to the law: of primary products from agriculture and livestock breeding; poultry farming; fish breeding and apiculture, including the obtaining of fresh eggs, natural honey and beeswax; forestry and wood extraction; hunting and fishing and activities related to the mineral, raw oil and gas extraction through operations in which the price is fixed after the delivery of the product, the tax shall be chargeable at the moment said price is fixed.
b)	In the case of rendering of services or services and building contract upon conclusion of the project or service or upon collection of the total or partial amount corresponding to the price, whichever happens first, with the exceptions set forth by the law.
c)	In the case of works performed on third party’s real property, upon acceptance of the progress certificate, partial or total, or upon collection of the tota l or partial amount corresponding to the price or billing, whichever happens first.
d)	In the case of lease agreements pertaining to goods and leasing of telecommunication circuits or systems, upon due payment or upon collection thereof, whichever happens first. The same criterion shall be applicable to leases and services included in paragraph 21 (e), section 3 which consideration must be calculated according to amounts or sale units, production, exploitation or similar indexes, when the payments are made in installments corresponding to the periods in which the total term of the use or enjoyment of the personal property is divided.
e)	In case of works performed directly or through third parties on one´ s own real property upon conveyance for valuable consideration thereof, understanding that it takes place when the deed is drawn or when legal possession is acquired, if the latter happens first. In the case of court-ordered sales through public auctions, the conveyance shall be considered as performed when the final court order is issued.
f)	In case of imports, once the deal is completed.
g)	In the case of a lease purchase transaction, upon delivery of the good or equivalent action, when the lease refers to the cases stated in the law.

Notwithstanding the aforementioned subsections, when down payments or advanced payments are made in order to fix the price, the tax shall be chargeable upon payment and on the amount received.
Section 5 - 20631 Act (T.O. 1997)

Exemptions

Exemptions within the territory of the country:

Sales (and works which involve the transfer of exempted goods) of the following goods: Books, leaflets and similar printings; ordinary natural water, common bread, milk, medicine, postage stamps valid for use in postal services, fiscal stamps and other similar stamps, betting, lottery tickets and other forms of gambling duly authorized, aircraft for use in commercial activities and in defense or internal safety, ships or boats acquired by the National Government.

Supply of services such us: Services rendered by the Government (National, Provincial or Local) or by public institutions, school or university education given by private institutions subject to public educational programs, cultural services supplied by religious institutions, hospital and medical care and closely related activities, the provision of medical care in the exercise of medical and paramedical profession, transport services for sick or injured persons in vehicles specially designed for the purpose, tickets for theatre, cinema, musical shows and sport events, the production and distribution of motion picture films, local transport of passengers (taxis, buses, etc.) up to 100 km., international transport, transactions concerning deposit and current account in bank institutions under 21526 Act, directors’ fees, the leasing or letting of real property.

Section 7 - 20631 Act (T.O. 1997)

Exemption on imports:

The following transactions shall be exempted from taxation:

Final imports of goods qualifying for exemption from customs duties under special regimes for tourists, scientists and technicians, diplomatic agents, etc.;

Final imports of goods qualifying for exemption from customs duties by religious institutions and other entities exempted from income tax, with the purpose of supplying non-profit medical care or carrying out scientific and technological research;

Final imports of samples and parcels exempted from customs duties;

Imports of goods bestowed to National, Provincial or Local Governments.

Imports of services rendered abroad, when the service is requested by the National, Provincial or Local Government.

Section 8 - 20631 Act (T.O. 1997)

Exemption on exports:

The export of goods and services are exempted from VAT. Services rendered within the country shall be deemed to be exports if they are effectively applied or economically used outside the country.

Section 8 and 9 - 20631 Act (T.O. 1997)

Rate:

The standard tax rate is 21%.

An increased rate of 27% applies in the case of gas, electric current, water supplies, sewerage, telecommunications, other than those supplied for residential use or to real property for recreation or vacation and only if the beneficiary is a taxable person (registered or not-registered).

A reduced rate of 10.5% applies in the following cases: works on real property for housing (excluding those constructions on existing property which do not constitute works in progress); sale and import of living bovine animals, meat or eatable spoils from bovine animals, fruits, pulse and vegetables; interest and other costs on personal loans granted to final consumers by financial institutions under 21526 Act, interest and other costs on loans to enterprises engaged in the transportation of passengers by land granted by financial institutions under 21526 Act.

Section 28 - 20631 Act (T.O. 1997)

Taxable base:

Goods: Net sales price including ancillary services and excluding all chargeable taxes and VAT;

Services: The total consideration payable to the person supplying the services.

Imports: The value of goods computed in the same manner as for customs duties, plus import duties and any other charges imposed on the goods. VAT and excise duties are excluded from the taxable base.

Section 10 and 25 - 20631 Act (T.O. 1997)

Vat Returns:

The fiscal period is the calendar month, so a monthly VAT return must be filed between the 18th and 22nd day of the month following the month concerned. In the case of imports, the VAT is computed and paid together with custom duties.

Special Regime For Exports:

Exports are exempted from value added tax. In addition, exporters may also compute a tax credit for value added tax paid on raw materials and other purchases related to exports. In case the deduction of the tax credit were not possible, or were only partially deducted, the excess part of the credit not used will be allowed as credit against other national taxes or otherwise reimbursed to the taxpayer.

Section 43 - 20631 Act (T.O. 1997)

Excise duties

The tax is levied on tobaccos, alcoholic drinks, beer, soft drinks, syrup and spirits, automobiles and diesel motors, mobile and satellite phone services, champagne, luxury goods, recreation or sport ships and aircrafts throughout the territory of the country and shall be applied pursuant to the provisions herein stated.
Section 1 - 24674 Act

Chargeable event:

The tax is levied on the outlay of goods mentioned above. The term “outlay” includes any transfer and import of goods for consumption or resale. In the case of alcoholic drinks, the term “outlay” means the transfer carried out by the manufacturer or importer or by the person on behalf of whom the elaboration was carried out.

Section 56 - 3764 Act (T.O. 1979)

Taxes hereby levied shall be applicable on the outlay throughout the country in such a way as to keep the tax burden in one stage of the production chain and will be paid by the manufacturer; the importer, in the case of consumption imports, pursuant to customs law; the person who divides the product; the person who prepares it, or the people on whose behalf these processes are performed, with the exemptions and in the way established for each tax and pursuant to the regulations set forth by the Executive Power.

Section 56 - 3764 Act (T.O. 1979)

Taxable amount:

The taxable amount is the net sale price payable to the taxable person, except in the case of cigarettes where the taxable amount is the sale price payable by the final consumer. It is understood that the term “net sale price” means the price after deduction of discounts, interests and VAT.

Section 4 - 24.674 Act

In the case of imports, the taxable base will be 130% of the amount resulting from the addition of the taxable base for custom duties plus any tax applied on the transaction, except for VAT.

When the imported taxable products are sold, the importer is allowed to credit against the tax charged on the outlay the tax previously paid on the import.

Section 7 - 24674 Act

Tax rates::

Tobacco
Cigarettes	60%
Others	16% - 20%
Alcoholic drinks	12% - 20%
a) Whisky	20%
b) Cognac, brandy, gin, pisco, tequila, vodka or rum	20%
c) According to their alcoholic level, excluding products indicated in a) and b):
Class 1, from 10° to 29 and fractions	20%
Class 2	30%
and more	20%.
Champagne	12%
Beer	8%
Soft drinks, syrups and liquors	8%
Automobiles and diesel motors	10%
Luxury goods	20%
Ships and aircrafts	4% to 8% (according to their value).

Assessment and collection:

The tax resulting from the application of the provisions herein stated shall be paid every calendar month on the basis of the affidavit performed in an official form.
In the case of cigarette manufacturers settled in tobacco areas established by the DIRECCIÓN GENERAL IMPOSITIVA, the terms established for the payment of the tax corresponding to products released from the factory shall be extended in a general and automatic way up to twenty (20) consecutive days by such agency.

Section 13 - 24674 Act

Treatment of exports:

For the purposes of this law, taxed national products shall be exempted from taxes, as long as there is no taxable event, when they are exported or incorporated to the list of “ship supplies” of international ships or airlines, on the condition that the cargo is supplied in the last stop in national soil, or otherwise, travel to such destination as “controlled goods.”
In the case of products which, having caused the taxable event, are aimed at exports or at the aforementioned “ship lists”, the tax shall be refunded or credited as long as the exit of the country is duly evidenced and, given the case, the fiscal instrument that evidences the tax payment may be invalidated.
In case of exported goods containing national inputs which have been subjected to tax, a credit of the tax paid will be granted as long as evidence thereof can be provided.
For the purposes of the previous paragraph, “inputs” mean all taxed products, in any stage of the production chain, that are part of the final product, whether transformed or not.

Section 10 - 24.674 Act

Insurance activity

Insurance companies legally registered or incorporated in the country shall pay an 8.50% tax (eight point five percent) on the insurance premiums, except in the case of labor accidents insurance which shall pay 2.5% (two point five percent).
Insurance contracts on people, except life insurance contracts (individual or collective) and personal accident insurance contracts, and insurance contracts on goods, personal property, real estate or livestock in the country or with such destination, granted by insurance companies settled abroad shall pay 23% tax (twenty three percent) on the general risks policies.
The tax for each insurance contract mentioned in the previous paragraph must be paid at the dates when the premiums are payable; for such purpose, an exact copy of the contract shall be filed to the Dirección General Impositiva stating the beneficiary's address, who must inform any change thereof.
Agricultural insurances, life insurances (individual or collective), insurances on personal and collective accidents that cover expenses for admission into a hospital, surgery or maternity, are exempt from the tax established in sections 65 and 66.
Section 65 through 68 - 3764 Act (T.O. 1979)

Cellular and satellite telephone services:

A FOUR PERCENT (4%) TAX is levied on the amount billed for the rendering of services of cellular and satellite phones to the user.
The sale of prepaid and/or rechargeable cards used to render the services of cellular and satellite telephones shall also be subject to such tax.
The taxable event occurs when the corresponding bills and/or sale or recharge of cards are due and those who render the taxable service are taxable individuals.
Section 30 through 32 - 24674 Act

Liquid Fuel and Natural Gas Taxes

A tax is levied on the transfer, whether on an onerous or free basis, of local or imported goods in the territory of the nation so that it is only applied in one stage of the production chain. It applies on gasoline with or without lead, natural and virgin gasoline, solvent and oil of turpentine, gas-oil, diesel oil, kerosene and natural gas for use in automobiles.
Products consumed by the taxable person shall also be taxable, except for those used exclusively as fuel in the production processes and/or manufacture of hydrocarbons and their by-products.
The exemption referred to in the previous paragraph shall also be applied when the products are used by the registered individual for the manufacture of other taxable products.

Section 1, 4 and 10 - 23966 Act (T.O. 1998)

Chargeable event:

A chargeable event occurs:

a)	Upon the delivery of the good, issuance of bill or equivalent action, whichever happens first.
b)	In the case of products used by the taxpayers themselves, upon the withdrawal of the fuels for consumption.
c)	In cases of carriers, bailees, owners or holders of taxed products that have no documents to prove that such products have paid the tax pursuant to this law or that are comprised within the exemptions thereof, upon evidence of possession of the products. In the case of imported products, the individuals that enter them into the country, whether taxable or not for the purposes of this law, must make a tax down payment upon shipment to destination. The balance shall be paid together with customs duties and value added tax, in the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS, autarchic entity of the TREASURY DEPARTMENT. The applicable rate shall be the one in force at the time.

Section 3 and 7 - 23966 Act (T.O. 1998)

For the purposes of this section, “taxable person” means:

a)	Any person who performs the imports.
b)	Companies that refine or trade liquid fuels and/or other hydrocarbon by-products.
c)	Companies that produce, elaborate, manufacture or obtain taxed products directly or from third parties.
d)	In the case of liquefied gas used in automobiles, the owners of fuel outlets and owners of fuel storage for private use, registered in the Register as set forth in the Resolution of the former ENERGY BUREAU No. 79, dated March 9th, 1999, authorized to trade liquefied gas pursuant to technical, safety and economic standards that rule the activity, shall be taxable individuals. In cases of carriers, bailees, owners or holders of taxed products that have no documents to prove that such products have paid the tax pursuant to this law or that are comprised within the exemptions thereof, shall be taxable on such products notwithstanding the penalties provided by law or the responsibility of other individuals participating in the infringement thereto.

Section 3 - 23966 Act (T.O. 1998)

Tax Assessments and Collection

Tax Returns and administrative payments of taxes:

The assessment and collection of taxes pursuant to the provisions herein stated shall be performed on the basis of tax returns filed by taxpayers in the terms and conditions stated by the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS. When the latter deems it necessary, this obligation may also be extended to third parties that intervene in any way in taxpayers’ operations or transactions linked to taxable events pursuant to the pertinent laws.
Section 11 - 11.683 Act (t.o. 1998)

The tax return is subject to administrative review and, notwithstanding the tax paid or assessed, the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS holds the deponent liable for the resulting tax, which sum cannot be reduced due to later tax returns, except for cases of miscalculation. The deponent shall also be liable for the accuracy of the data included in the return, and he will not be discharged from his obligations by submitting a later return, although not requested.
Section 13 through 15 - 11683 Act (t.o. 1998)

Automatic tax assessment regime

When the taxpayer fails to submit a return or when a return is challenged, the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS shall arbitrarily estimate the taxable income or the payment of deficiencies, as the case may be, and estimate the corresponding tax, whether directly if based on accurate data or through estimation, if there is not enough data.

The tax assessments performed by inspectors and other employees that control fiscal behavior, do not imply administrative decisions which are of exclusive jurisdiction of the officials that act as administrative judges.
Section 16 through 19 - 11683 Act (t.o. 1998)

Judicial Review

Individuals who infringe tax laws can appeal resolutions that impose penalties or that assess taxes in an accurate or estimated way, or claim a refund in cases authorized by law where the taxes have already been paid, by filing within FIFTEEN (15) days after receiving written notice thereof the following claims:

a)	Appeal to a court requesting the reversal of its own decision
b)	Appeal before the pertinent NATIONAL TAX COURT, when possible.

Appeal pursuant to subsection a) shall be filed before the same authority that issued the corresponding resolution, by submitting the pertinent document or by mailing it by means of a registered letter with receipt requested; and the appeal pursuant to subsection b) shall be notified by the same means.
The appeal pursuant to subsection b) may not be filed in relation to advanced payments and other payments on account, their updates and interests. Likewise, such remedy shall not be filed in relation to payment of updates and interests when the tax origin is not under discussion.
Section 76 through 80 - 11683 Act (t.o. 1998)

The ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS shall have full powers to review at any time, even regarding current fiscal periods, through its officials and employees, the compliance of taxpayers with laws, regulations, resolutions and administrative instructions, supervising the situation of any alleged liable party.

Section 35 and 36 - 11683 Act (t.o. 1998)

Interest, Illegalities and Penalties

Interests

Total or partial failure to pay taxes, to deposit taxes withheld, collected, advanced payments and other payments on account, shall accrue a default interest as from the corresponding due dates, without prior notification.
Section 37 - 11683 Act (t.o. 1998) 1998)

Formal infractions - Penalties

A taxpayer who fails to submit his return within the period established by the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS, is subject to a fine, without prior notice, of TWO HUNDRED PESOS ($200), increased to FOUR HUNDRED PESOS ($ 400) in case of partnerships, associations or entities of any kind organized in the country or businesses organized as permanent companies, of any kind or with any purpose, owned by natural or artificial persons, domiciled, organized or settled abroad.
Section 38 - 11683 Act (t.o. 1998)

Violation of the provisions herein stated, of the pertinent tax laws, of the regulatory orders and of any other compulsory rule that establishes or requires compliance with formal duties to determine a tax obligation and to review or control compliance by taxpayers shall be punishable by fines from ONE HUNDRED AND FIFTY PESOS ($ 150) to TWO THOUSAND AND FIVE HUNDRED PESOS ($ 2.500).

In case of the following cases of non-compliance, the fine set forth in the first paragraph of the section hereof shall range from the minimum to the maximum amounts therein stated up to the maximum amount of FORTY FIVE THOUSAND PESOS ($ 45.000):

	Infringements to the rules to settle legal domicile set forth in the law, in the regulatory order or in complementary regulations set forth by the Administración Federal de Ingresos Públicos in relation thereto.
	Obstruction to any inspection on the part of the taxpayer, consisting on the repetitive non- compliance with the requirements of intervening officials, as long as these are not excessive regarding the information and form requested, and as long as the taxpayer has been granted with the term stated by the Law of Administrative Procedures for his reply.
	Failure to give details required by the Administración Federal de Ingresos Públicos for the surveillance of international operations.
	Failure to keep receipts and vouchers to evidence prices agreed upon in international operations.

In all aforementioned cases of non-compliance, the fee to be applied shall be regulated according to the taxpayer's condition and the seriousness of the infringement."

Section 39 - 11683 Act (t.o. 1998)

Closure

A fine from THREE HUNDRED PESOS ($ 300) to THIRTY THOUSAND PESOS ($ 30.000) and closure from THREE (3) to TEN (10) days of the business, premises, office, industrial, agricultural and livestock breeding, or services facilities, as long as the value of the goods and/or services involved exceeds TEN PESOS ($ 10) shall be applicable on individuals who:

a)	Do not issue bills or similar receipts for one or more commercial, industrial, agricultural and livestock breeding, or services operations performed pursuant to the procedure, requisites, and conditions established by the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS.
b)	Do not keep record of their purchases of goods or services or sales thereof, or industrialization services, or if they did, these were incomplete or defective, failing to comply with the procedures, requirements and conditions set forth by the Administración Federal de Ingresos Públicos.
c)	Order or commercially transport goods, even if they are not their own, without the documents required by the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS.
d)	Are not registered as taxpayers or responsible individuals before the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS when they were obliged to.
e)	Fail to keep bills or vouchers to evidence the purchase or ownership of goods and/or services necessary to develop the pertinent activity.
f)	Do not have or keep in the appropriate functioning conditions or do not use production measurement and control instruments as provided by laws, regulatory orders set forth by the national Executive Power and any other compulsory rule, in order to facilitate the review and control of taxes by the Administración Federal de Ingresos Públicos.

Section 40 through 44 - 11683 Act (t.o. 1998)

Tax Omission - Penalties

Any taxpayer who fails to submit his return or submits inaccurate returns is subject to a fine between fifty percent (50%) and one hundred percent (100%) on the amount of the tax omitted, not withheld or timely collected, as long as section 46 is not applicable and there is no justifiable error. The same penalty shall be applied on withholding agents that omit acting as such.
Individuals who fail to file tax returns, payments or other documents, or file inaccurate tax returns, or omit them and/or fail to pay taxes on account or taxes advancements shall be subject to the same penalty.

The omission referred to in the first paragraph shall be punished with a fine of ONE (1) to FOUR (4) times the unpaid tax when said tax results from transactions between local partnerships, companies, trusts or permanent businesses settled in the country with natural, artificial persons or any other entity domiciled, organized or settled abroad. The penalty for non-compliance shall be assessed pursuant to the taxpayer compliance of formal obligations stated by Administración Federal de Ingresos Públicos for the control of tax obligations compliance derived from international transactions.

Section 45 - 11683 Act (t.o. 1998)

Tax Fraud - Penalties

Individuals who through fraudulent tax returns or malicious concealment, by action or omission, perform fiscal fraud shall be fined with TWO (2) to TEN (10) times the evaded tax amount.

Section 46 through 48 - 11683 Act (t.o. 1998)

Statutory Period

The powers the Treasury has to assess and demand the payment of taxes herein stated, and to apply and enforce fines and closures, become invalid:

a)	After FIVE (5) years in the case of registered taxpayers, as well as in the case of unregistered taxpayers who are not required to be registered in the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS or who, being required to do so and in case of non-compliance, spontaneously regularize their situation.
b)	After TEN (10) years in the case of unregistered taxpayers.
c)	After FIVE (5) years, regarding tax credits unduly credited, returned or transferred, as from January 1st of the succeeding year from the date when they were credited, returned or transferred. Doubling of tax becomes invalid after FIVE (5) years. Actions to demand the refund of taxes shall no longer be valid after FIVE (5) years. The period shall run from January 1st of the year following the due date of the fund return.

Section 56 through 69 - 11683 Act (t.o. 1998)

Judicial Review

Whenever a sum above TWO HUNDRED PESOS ($ 200) is under dispute, the individual may file a complaint against the national Treasury before the pertinent National Judge:

a)	Against adverse decisions in relation to fines.
b)	Against adverse decisions to claim a refund in cases where taxes have already been paid or review of an adverse decision.
c)	When no administrative resolution is set forth within the terms provided by the law in the case of administrative investigations or claims for taxes that have already been paid.

In the cases set forth in a) and b), the complaint shall be filed within FIFTEEN (15) days from the notice of the administrative resolution.

Section 82 through 91 - 11683 Act (t.o. 1998)

DESCRIPTION OF THE MAIN TAXES IMPOSED BY THE DIFFERENT GOVERNMENTAL LEVELS

	Federal Government:
	Income tax, minimum presumed income tax, property tax, natural person’s real property conveyance tax, paid interests and corporate debt financing cost taxes, value added tax, internal tax, liquid fuel and natural gas taxes, social security regime tax, custom duties and other less important taxes.

	Provincial Government
	Gross revenue tax, property partial statement tax (real property and vehicles), stamp tax and self-employment taxes.

	Municipal Government
	Self-employment taxes and specific taxes.

AFIP’s Museum

AFIP’s museum is located at Hipólito Yrigoyen 370, in the City of Buenos Aires and it introduces its visitors to the Administración Tributaria Argentina’s history, keeping, researching and revealing objects and documents. We display daily-use elements of the time, documents and files that recover names, dates and places –all echoes of a passed time that is still alive. Among the collections we highlight our original tax payment records from the 19th century and custom documents from mid 1800. Japan, Israel, Belgium and Germany are the only countries of the world that share with us the interest for creating a tax museum. GUIDED TOURS

We offer guided tours for groups from primary and high schools. To make an appointment, call to the following telephone numbers 4347-2396/2315 or send an e-mail to museo@afip.gov.ar

Visiting hours: working days from Monday through Friday from 11 a.m. to 5 p.m. Free admission. Entrance through Hipólito Yrigoyen 370.

Location


The AFIP’s Museum is located in the Ground Floor of Hipólito Yrigoyen 370 in the Autonomous City of Buenos Aires, just in front of Plaza de Mayo, the historic center of the city.
The building shows the monumentalist rationalist style. It is the work of the architects R. Fitte and H. Morelli, and it was built from 1951 to 1966.
This colossal concrete structure covered in marble occupies the whole block and is separated a few meters in its rear part to put the adjoining San Francisco Church into perspective.
The building is also well known because it contains another building of smaller size but of great historic importance: the old Congress of the Nation.
We have moved the Museum in front of Plaza de Mayo in order to incorporate it to the visit tour of the Historic Center of the City of Buenos Aires.

GALLERIES

	Gallery 1: Institutions’ Origin
	We present a summary of the DGI (Taxes), DGA (Customs) and DGRSS (Social Security) integration. We also recall some Directors of each agency. With this purpose, we display some of their stamps, documents and personal objects.

	Gallery 2: Customs
	We have recovered trunks and suitcases that have once passed through the Customs. We display several pictures of custom facilities and import and export objects from different periods.

	Gallery 3: Dirección General Impositiva
	We go back to colonial times: we cover the Independence and civil war periods up to the year 1891. We devote this space to show the evolution of tax collection and control mechanisms applied in our country. We display documents of great historic importance to show the relation between taxes and national sovereignty. We also show some examples of evasion, smuggling and forgery.

	Gallery 4: Social Security Resources
	We display objects of daily-use in offices of approximately 1930, time when primitive mechanization started: old printers, a mimeograph and even a writing-desk that hides a trap. In addition, we display devices that testify the working relationships of old times, as an introduction to tackle the origin of the so called Social Security Resources.

Transportation means

	Buses:
	29, 56, 28, 64, 86, 91,105, 126

	Subway:
	Line A (“Plaza de Mayo” station),
	Line D (“Catedral” station) and
	Line E (“Bolivar” station).

News

AFIP launches a free video game with a remarkable production quality for children and teenagers

Argentina is the first state worldwide that develops a product with these characteristics for educational purposes

AFIP will launch on July 28th a video game named “Risk Profile”. This video game has an excellent production level and its costs are almost a third part of what usually demands the performance of this kind of entertainment abroad.