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Tax Information


How to be a taxpayer before the AFIP (Federal Administration of Public Revenue)
Registration of aliens at AFIP
Web Services – Tax Code
Procedures related to aliens that make transactions in the Argentine Republic
Information for foreign investors
Main national taxes – Information
Payment of taxes






How to be a taxpayer before the AFIP (Federal Administration of Public Revenue)


There are two types of taxpayers at the AFIP

Those who are registered at the General Tax Regime
Those who are registered at the Simplified Tax Regime or Simplified Tax


Those who are registered at the General Tax Regime

The taxpayers registered at the General Tax Regime are natural or legal persons subject to some of the following taxes: income tax, value added tax (VAT), tax on personal assets, tax on presumptive income and any other national tax which can be collected and controlled by the Federal Administration of Public Revenue

The employers and/or self-employed individuals must be registered at the General Tax Regime

Some taxpayers registered at the General Tax Regime, according to certain provisions established by Law, may choose the Simplified Tax Regime. (Simulator - available in Spanish)



Those who are registered at the Simplified Tax Regime

The Simplified Tax Regime includes in one tax the income of a fixed amount which is formed by a pension element (Social Security) and a tax element.

Por It is a monthly payment obligation. The amounts of each element are mandatory with the exceptions established by the current rules.

The list of the Health Care Providers that participate in the Regime is available at the Superintendence of Health Services web site (available in Spanish). The classification is self-determined every four months, but only when the parameters exceed or are below the limits of the declared category. (Simulator - available in Spanish)

The employers registered at the Simplified Tax must report their workers and their benefits and contributions according to the General Tax Regime.

The taxpayers that have to pay the tax on personal assets (Simulator - available in Spanish) or the registered taxpayers must submit the annual tax return and, if appropriate, they have to pay the amount established according to the General Tax Regime. More information about the Simplified Tax




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Identification Number for Taxpayers – CUIT

Tax Identification Number – CUIT

The Identification Number for Taxpayers (CUIT) is a numeric code through which AFIP identifies taxpayers. A person must consider the following issues in order to obtain a CUIT:

The application form to obtain the CUIT must be completed at any of the AFIP agencies (search available only in Spanish) according to the domicile established for taxation purposes. If the taxpayer is domiciled abroad and does not have any attorney-in-fact in the country or if the domicile of that attorney-in-fact cannot be determined, the fiscal domicile will be the place within the Argentine Republic in which such attorney-in-fact has his main business or his last known residence.


The following forms of tax returns must be filed, depending on the type of taxpayer and the type of regime:



General Tax Regime

Steps to obtain the CUIT:

Natural persons and undivided estates: F 460/F (available in Spanish)

Legal Persons: the application form for registration must be sent electronically together with the tax return created with the Legal Persons Registration Module program.


The computer program requests information related to:

Identifying information: company name, legal domicile and other related information.
Information related to the members of the company: authorities, capital share or partners
Information related to business: tax related information, activities and fiscal domicile

To obtain the computer program click here (available in Spanish).

To obtain the manual of the computer program click here (available in Spanish).


Once the person enters the information requested by the computer program, he has to create a file to make the electronic transfer of information and finally he has to print the form 420/J.


The file created by the program must be sent to AFIP:

Using the Tax Code through the Tax Return and Payment  service in the AFIP web site.
Using the Bank Identifier Code through the web site www.linkpagos.com.ar, www.pagomiscuentas.com, www.interbanking.com.ar (available in Spanish) or at the web site of the banks authorized for such purpose


2 (two) copies of the acknowledgement of receipt that contains the verification and the transaction number.

To know about the provisions read General Resolution 2337, of the year 2007 (available in Spanish).


Taxes

At the AFIP web site, the taxpayer must indicate the taxes he will pay using the Tax Code, in the Unique Taxpayers’ Register: Registration of Taxes and/or Regimes



Simplified Tax Regime or Simplified Tax

Steps to obtain the CUIT:

Natural persons and undivided estates: F. 183/F (available in Spanish)

Legal Persons: must file form F. 183/J. (available in Spanish)

The Simplified Tax Regime or Simplified Tax registration will become effective when the information is electronically transferred through form F184/F using the “Tax Code” – Simplified Tax in the Federal Administration web site (http//www.afip.gov.ar).

Once the information included in the form F.184/F is recorded, the system will provide an acknowledgement of receipt and a card to pay the form F.152.

Once the information included in form F.184/F is confirmed at the web site and form F.152 is printed, the procedure for the Simplified Tax Regime is concluded.

If you want to see the necessary steps to register in the Simplified Tax Regime click here (available in Spanish).

To know about the provisions read General Resolution 2150 Year 2006 (available in Spanish).




General Considerations

If a taxpayer is domiciled abroad and does not have any attorney-in-fact in the country or the domicile of that attorney-in-fact cannot be determined, it will be considered as fiscal domicile the place of the Republic in which such attorney-in-fact has his main business or his last known residence.

The above mentioned forms must be submitted together with form 561 (available in Spanish) if the taxpayer has branches or other establishments.

The above mentioned forms must include the attestation of the signature of the holder or authorized person by a bank, police authority or Notary Public, except when those forms were signed in front of an agent of this Federal Administration when submitting them. In that case, said agent will act as certifying authority.




The following documents must be attached to the forms:


Natural persons: photocopy of the identity document (National Identity Document, Personal Identity Booklet for Women, Personal Identity Booklet for Men).

Aliens that do not have a National Identity Document: photocopy of identity card or certificate that proves the file number issued by the National Migration Office (available in Spanish) stating his residence.

The Taxpayers Identification Number (CUIT) to aliens is subject to the conditions established in General Resolution 3890 - General Tax Directorate (available in Spanish).

The taxpayers identification number (CUIT) is valid for 2 (two) years. The CUIT is a numeric code through which the AFIP (Federal Administration of Public Revenue) identifies each individual or legal person. During such period, aliens must apply for the Argentinean identity document and inform such number to the General Tax Directorate.

The notification will be through the tax return in Form 581 (available in Spanish). The tax return must be filed within 10 days after the granting of the document and submitted at the corresponding AFIP agency (the search is only available in Spanish) where such person is registered.

Aliens who have temporary residence in the Argentine Republic will be subject to the admission term established by the Ministry of Interior (available in Spanish) - under the residence certificate issued by such authority



Tax cancellation

The cancellation of the registration can be made using the Tax Code. The person has to access the Unique Taxpayers’ Register. For more information click here (available in Spanish)

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Web Services – Tax Code -


The Tax Code is a password given to taxpayers by the AFIP. Such password allows the taxpayer to make transactions, such as file tax returns, payments, chose the simplified tax system, request a tax or cancel the registration, among others, through any computer with Internet access. It is necessary to fulfill certain formalities in order to guarantee the confidentiality of the information sent.


Steps to obtain the “Tax Code” for INDIVIDUAL PERSONS
Steps to obtain the “Tax Code” for LEGAL PERSONS
Relationship management
Procedure to obtain the “Tax Code” to do business on behalf of an individual person (EXCEPTIONAL CASES)
I forgot my password




Steps to obtain the “Tax Code” for individual persons

Individual persons who have already started the procedure to obtain the CUIT (Identification Number for Taxpayers), CUIL (Employee’s Tax Identification Number) or CDI (Identification Number) must have a “Tax Code” with the corresponding “Security Level”.

The “Security Level” establishes which are the AFIP services that the individual person may use; the higher the “Security Level”, the higher the quantity of services the individual may use via Internet, and the higher the quantity of information required.

Click here (available in Spanish) to see the list of services available only using the Tax Code and the security level required for each case (application form, agency).

Click here (available in Spanish) to see the necessary steps to request the “Tax Code” via Internet.


Documentation to obtain the “Fiscal Code” with security level 3 or 4:

1. – Native or naturalized argentine person and foreigners: original and photocopy of the ID (documento nacional de identidad, libreta cívica or libreta de enrolamiento). Foreigners must also submit the original and photocopy of his/ her origin country ID, passport or MERCOSUR ID (for neighboring countries).

2. Foreigners without national ID residing in the country (whether temporarily or transitorily): original and photocopy of the ID (Cédula de Identidad) or the certificate or receipts proving the number of file issued by the National Office of Migration (Only available in Spanish) stating his/ her residence.


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Steps to obtain the “Tax Code” for Legal Persons

Legal persons may use the computer services available using the “Tax Code” of his legal representative.

For said purpose, such legal representative must:


Have a “Tax Code” with security level 3 or 4
Start the steps to obtain the “Relationship Management” of the Company he represents by submitting the following documentation at the AFIP agency (search available only in Spanish)


DOCUMENTS TO SUBMIT

In all the cases the copies of the documents submitted must be certified by a Notary Public, bank, Justice of the Peace or police authority.

A- (Sole) Legal representative of associations and companies (including de facto associations or corporations in the process of formation). In order to prove his capacity as legal representative, an individual person must submit the following elements at the AFIP agency for each legal person represented:


1. Identity document of the legal representative (National Identity Document, Personal Identity Booklet for Women, Personal Identity Booklet for Men)
2. Certified copy of the rules that regulate the operation of the legal person: partnership agreement, by-laws, etc.
3. Documentation that proves his capacity as legal representative of the entity: minutes of a meeting, judicial sentence, etc.

In case of registered associations, the appointment must be registered with the competent companies registry office.



B- (Joint or Shared) Legal representative of associations and companies (including de facto association or corporations in the process of formation).

1. Identity document of the legal representative (National Identity Document, Personal Identity Booklet for Women, Personal Identity Booklet for Men).
2. Certified copy of the rules that regulate the operation of the legal person: partnership agreement, by-laws, etc.
3. Documentation that proves his capacity as legal representative of the entity: minutes of a meeting, judicial sentence, etc.

In case of registered associations, the appointment must be registered with the competent companies registry office.


G- Diplomatic Representations:

1.Identity document of the legal representative (National Identity Document, Personal Identity Booklet for Women, Personal Identity Booklet for Men).
2.Copy of the certificate that proves his diplomatic representation. Said certificate must be issued by the Ministry of Foreign Affairs and Religion (available in Spanish).


To apply for the Relationship Management status, the legal representative may authorize a third party to submit the documentation at the AFIP agency. Said third party must be authorized for such purpose through form 3283 (available in Spanish).



Special Cases

Joint legal representation:

When the legal representation of a legal person is jointly exercised, one of the legal representatives must be appointed to use the available services. Thus, the legal representative has to submit a note in accordance with the Annex IV of the General Resolution 2239 (amended by the General Resolution 2288) and a signature attestation made by a Notary Public, bank, Justice of the Peace or police authority, according to the provisions of General Resolution 1128 (available in Spanish).

Individual persons that represent: legal persons, entities, private schools, schools belonging to an archbishopric, bishopric or congregations of the Catholic church or other kind of religious communities, or non-profit civil organizations may delegate the Relationship Management to an individual person that is part of his organization.

The appointed person must have a Level 3 Tax Code and then submit the following documentation at AFIP:

Document through which he is appointed for the position
Document through which he is appointed as “Relationship Manager”


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Relationship Management

The Relationship Management tool allows taxpayers to register and deregister) the people acting on his behalf before the AFIP and using the services that need the Tax Code.

It is necessary to explain the following concepts in order to understand the scope of this tool:

Who may act as a “Relationship Manager”?
It depends on the kind of taxpayer. If the taxpayer is an Individual: himself/ herself. If the taxpayer is a Legal Person: his/ her Legal Representative
What kind of tasks the “Relationship Manager” may undertake?
“Relationship Manager” may use the available services; appoint one or more Relationship Sub-managers; designate internal or external users; identify the servers which provides web service for one or more services; grant general or special powers or authorizations to perform certain acts or procedures at the AFIP; revoke the aforementioned actions; make inquires about transactions conducted.
Who are the “Relationship Sub-managers?
“Relationship Sub-managers” are those individual persons appointed by the Relationship Manager to exercise the powers related to his position, whether to replace the Relationship Manager or to act simultaneously with and independently from such Manager.
Who are the “internal users”?
Internal users are those individual persons designated by the Relationship Manager or the Relationship Sub-Manager to use the services using the Tax Code on behalf of the taxpayer
Who are the “external users”?
External users are those individual or legal persons designated by Relationship Manager or the Relationship Sub-Manager to use the services that need the Tax Code. When the external user is a legal person, the Relationship Manager must designate an individual person to use the services that need a Tax Code

See Diagram that show the relationship between the parties that are part of  the Relationship Management (available in Spanish).


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Steps to obtain the “Tax Code” to do business on behalf of a individual person (EXCEPTIONAL CASES)

In exceptional cases, an individual person designated as “Proxy Relationship Manager” may act as proxy on behalf of:

An individual person that due to a permanent or temporary disability is unable to appear before any agency of the Federal Administration of Public Revenue
An individual person living abroad, unable to appear before any agency of the Federal Administration of Public Revenue
An individual person that legally represents any of the legal persons included in the exceptional cases mentioned above. The revocation of the power granted to the Proxy Relationship Manager will become effective when another Proxy requests the Tax Code or when the represented person requests his own Tax Code and becomes Relationship Manager thus revoking the other Proxy





Procedure:

In order to obtain the Tax Code, the Proxy must submit the following documentation in any of the AFIP agencies or Service Centers (available in Spanish):

a) Documentation to be submitted by the Proxy:

1.-Argentine native or naturalized citizen and aliens: original and photocopy of the identity document (national identity document, identity document or personal identity booklet). Aliens must also submit the original and photocopy of the identity document of his country of origin, passport or MERCOSUR identity document (for neighboring countries).

2.- Foreigners with national identity document:

a) original and photocopy of the identity document and his original identity document, passport or MERCOSUR identity document (for neighboring countries).

b)Form F. 206 (available in Spanish) indicating the causes and the documents that must be attached for each case:

Causes that prevent the individual person from appearing Documentation to be submitted
Handicapped person Copy of the Handicapped Certificate granted according to Law 22431 and  Law 24901
Temporary physical disability Medical Certificate proving such condition
Residence abroad Copy of the Certificate of Residence duly authenticated by State Department which depends on the Ministry of Foreign Affairs and Religion together with the translation made by a certified translator. The signature of the translator must be authenticated at the Sworn Translators’ Association of the City of Buenos Aires


c) Form  3283/F (available in Spanish) or in case of legal representatives of legal persons, form  3283/J (available in Spanish)


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I forgot my password

The following options apply when you forget your password

Password recovery: after entering certain information in the AFIP’s web page you will be able to reset the password. Click here (available in Spanish) to go to this option
You may start the procedure to reset the password at an AFIP agency (available in Spanish). In every case, the security level will not be modified, regardless the method originally used to obtain such level

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Procedures related to aliens that make transactions in the Argentine Republic

Identification code (C.D.I.)

Why is it necessary to obtain an identification code (C.D.I.)?


The identification code is a numerical code that AFIP (Federal Administration of Public Revenue) grants to the individual or legal persons that do not have an Employee’s Tax Identification Number or an Identification Number for Taxpayers because there are no tax or social security binding issues.

The identification code will be obtained when opening a checking account or when the requirements of entities must be fulfill and the person does not have an Employee’s Tax Identification Number or an Identification Number for Taxpayers


What forms must be submitted?

To obtain the CDI the form 663 Nuevo modelo (Form. 663- new model) (Only available in Spanish) must be submitted in duplicate. Such form may be loaded from the AFIP’s web page (www.afip.gov.ar) or at any AFIP’s agency (Only available in Spanish).



Procedure to obtain the identification code

You may start the procedure at the AFIP agency (available in Spanish) which corresponds to the domicile of the person


Documentation to be submitted by residents abroad

Aliens residing outside the Argentine Republic must submit original and photocopy of the passport.
Residents in neighboring countries of the Argentine Republic may submit his original identification.
In addition, parties residing and doing business abroad must submit the passport or his original identification.
The documentation will be submitted by the legal representative, proxy or principal who must have an Employee’s Tax Identification Number, an Identification Number for Taxpayers or identification code.



Documentation to be submitted by business organizations

Partnerships established abroad must submit:

Documentation proving the legal capacity, if applicable.
Certified copy of the by-laws.
A sworn statement enumerating the provisions that regulate the incorporation, the operation and possible dissolution of the business organization
Documentation proving the legal capacity of the proxy or mandatory acting on behalf of the relevant entity.
Documentation proving the legal capacity of the proxy or principal acting on behalf of the entity.
In case the documentation is in a foreign language, a translation certified by a national certified translator registered in the Argentine Republic. Such translation must also include the Apostille


Documentation to be submitted by Diplomatic Representations

The original and photocopy of the certificate issued by the Ministry of Foreign Affairs and Religion) (available in Spanish) proving his diplomatic representation.



Who may start such procedure?

The procedure to obtain the identification code may be started by the interested party or by a third party in case of foreigners residing abroad. The interested party must sign the form before the officer in charge at the agency. If a third party starts the procedure, the signature of the interested party must be certified by a police authority, bank or Notary Public.



In which cases banks must request an identification code for aliens?

When the person who wants to open an account does not have an identification code and resides and conducts business abroad, the banks located in the Argentine Republic must request the identification code at the Federal Administration of Public Revenue.



What is the Employee’s Tax Identification Number (CUIL)?

The Employee’s Tax Identification Number (CUIL) is a numerical code similar to the Identification Number for Taxpayers that identifies persons employed or that may be employed by a third person.

The Employee’s Tax Identification Number is granted and issued by another entity: the Social Security Administration (available in Spanish).


To check your CUIL certificate Click Here (Search available only in Spanish).




Certificate of Tax Residence

Previous Issues

Under Decree 67/03, the area that issues the Certificate of Tax Residence is the Undersecretary for Public Revenue which depends on the Ministry of Economy and Finances through the National Tax Directorate.


The Federal Administration of Public Revenue, as enforcement authority, is responsible for the issuance of such certificate.

Each tax agency shall only provide information to the above mentioned Administration, when the certificate has been requested by the agency or by the National Tax Directorate.



Application form

The interested party must obtain the Certificate of Tax Residence at the National Tax Directorate –International Directorate of Tax Affairs or at the Federal Administration of Public Revenue.
Taxpayers registered in the Argentine Republic must appear before the AFIP agency (available in Spanish) in which he is registered



Evidence that shows the resident status

Individual or legal persons residing in the Argentine Republic, under Section 119 of the Income Tax Law (available in Spanish), may prove his condition as resident, by submitting the following documentation:

Native or naturalized persons with Argentine nationality: identity document (national identity document, identity document or personal identity booklet)
Persons with foreign nationality: certificate issued by National Migration Office  (available in Spanish) authorizing his stay in the Argentine Republic or identity document (national identity document)
Undivided estates in which the taxpayer, at the time of his death, was a resident in the Argentine Republic: the documentation mentioned before, if applicable
The parties to which the provisions of the Section 69, Subsection a) of the Income Tax Law (available in Spanish) apply: partnership agreement or by-laws registered at the General Inspection of Justice.
Trusts (including financial trusts) which show their participation in such legal regime with the certificate of registration according to Law 24441  (available in Spanish). Mutual Investment Funds according to Section 1, Paragraph 2 of  Law 24083 : through the management provisions registered at the Public Registry of Commerce



Documents to be submitted
The interested party must fill in the form “Certificate of Tax Residence” and must submit it with the following documentation:

Original and photocopy of the identity document (national identity document, identity document or personal identity booklet)
Original and photocopy of all the pages of the passport, including blank pages


If the interested party submits a Form 206 (available in Spanish) requesting the certificate, he must fill in the form “Certificate of Tax Residence”. Such certificate will be issued by the International Directorate of Tax Affairs. If the interested party is not a taxpayer or he is not responsible for tax or social security obligations, he shall be granted an identification code.



Matters related to the submission of the form

The Employee’s Tax Identification Number or the Identification Number for Taxpayers informed by the interested party must be registered in the Unique Taxpayers and Responsible Persons Registry. The information contained in such Roll must coincide with the information included in the form submitted, paying special attention to the domicile disclosed.

When the information does not coincide with the one included in the Form, the person making the request will have to modify the information by filing Form F. 460/F (available in Spanish), Form F. 460/J (available in Spanish), Form F. 183/F  (available in Spanish) or Form F. 183/J  (available in Spanish) in the case of Simplified Tax Payers, in accordance with the General Resolution 10/97 (available in Spanish) its amendments and/or complementary provisions.

When the Employee’s Tax Identification Number does not coincide with the information provided, the person will have to update said information at the UDAI office (available in Spanish) with his identity document (national identity document, identity document or personal identity booklet).

If the domicile of the person does not coincide with the information provided, he will have to update the information before the above mentioned agency, with his identity document, which must included the change of domicile.

When the individuals are not registered in this agency, the record is requested and sent to inform the situation.




Certificate.

The National Tax Directorate will issue the Certificate of Tax Residence and then, it will send said certificate to the domicile stated in the report sent by the Administrative Judge. In addition, the National Tax Directorate will inform the tax branch that intervened in the processing of the refusal of the certificate.




General provisions

To request the Certificate of Tax Residence, there should be an agreement between the Argentine Republic and another state to avoid double taxation and prevent the tax evasion.

When an alien does not want to obtain the permanent residence in the Argentine Republic, because his stay does not want to permanently stay in the country, he needs to request a certificate of nonresidence to avoid the payment of taxes in the Argentine Republic. Said request will have to be sent to the International Directorate of Tax Affairs.


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Information for Foreign Investors – Rules.

Law 2.382, approved as Annex I of Decree 1853/1993

FOREIGN INVESTMENT LAW (LAW 21382)



SECTION 1 - Foreign investors who invest capital in the country, using any of the forms mentioned in Section 3 of this Law, to promote economic activities, to expand or enhance existing economic activities, will have the same rights and obligations of the  local investors.

SECTION 2 - For purposes of this Law the term: 1. Foreign capital investment shall mean a) all capital contributions of the foreign investors and used in economic activities in Argentina; and b) the acquisition of all or part of the capital of an existing domestic company; 2. Foreign investors shall mean: all natural or legal persons domiciled outside the national territory; the holders of a foreign capital investment; and the domestic companies of foreign capital, defined in the next paragraph of this Section, that invest in other domestic companies. Section 3 of Decree 1853/93 states that "the concept of foreign investor includes to the natural or legal persons domiciled outside of the national territory"); 3. Domestic company of foreign capital shall mean: all the companies domiciled in Argentina but in which natural or legal persons domiciled outside the Republic own more than 49 percent of the capital, or have the number of votes necessary to prevail in shareholders’ meetings or partner's meetings; 4. Domestic company of domestic capital shall mean: all companies domiciled in Argentina, in which the natural or legal persons are also domiciled in Argentina and own not less than the 51 percent of the capital and have the number of votes necessary to prevail in shareholders’ meetings or partner's meetings; 5. Domicile shall have the meaning defined in Section 89 and 90 of the Civil Code.

SECTION 3 - Foreign investment can be made in: (1) convertible foreign currency, (2) capital goods, (3) earnings or capital in local currency belonging to foreign investors, when this earnings can be transferred abroad; (4) capitalization of foreign credits in convertible foreign currency; (5) intangible goods, according to the corresponding laws; and (6) any other type of contribution mentioned in the regimes.

SECTION 4 –An administrative body within the Department of Finance shall issue the regulations related to this Law and shall act as enforcement authority.

SECTION 5 - The foreign investors may send any liquid earning and realized income that are the result of their investments abroad and may repatriate their capital.

SECTION 6 - The foreign investors are entitled to use any of the legal status recognized by the Argentine laws.

SECTION 7 - Local companies with foreign capital may access the local credit market with the same rights and conditions that local companies with local capital have..

SECTION 8 - Temporary contributions of foreign capital made according to certain agreements for the provision of goods, work, services or other activities are not subject to this Law. They are governed by the terms and conditions of said contracts and in accordance with the applicable laws. However, the owners of such contributions may choose to have their investment governed by this law.

SECTION 9 - Legal acts executed between a domestic company with foreign capital and the company that controls it are considered as created between independent parties when the terms and conditions are according  to the usual market practices among independent entities.

SECTION 10 - Previous laws related to foreign investment and general rules issued pursuant to them are revoked (Law 20557, 20575 and 21037; Decree 413/74 and 414/74). This Law shall apply to all the proceedings pending under the revoked laws.

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Main national taxes

Income Tax

Payment of taxes for Argentinean residents

People living in Argentina pay taxes for the income obtained whether in the country or abroad. Other taxes paid for the activities conducted abroad can be considered as partial payments of the income tax.


Payment of Argentine taxes in the case of aliens

Non-Argentinean residents pay taxes only on their Argentine incomes. Therefore, a foreign beneficiary will be a person who obtains his incomes through proxies, agents, representatives or any other principal located in the country or a person who obtains his incomes in Argentina but cannot prove the permanent residence in said country. When the withholding of taxes is not possible, the income will be at the expense of the payer’s entity. When there are net incomes, the person who pays said incomes should withhold and pay the 35 % of such incomes to the Federal Administration of Public Revenue (AFIP). For such purpose, the provisions set forth in General Resolution 739/99 shall be fulfilled (available in Spanish).


“Argentine source of income”


The Argentine source of incomes are those that arise from goods located, placed or used for an economic purpose in Argentina; from any act or activity capable of producing an income in Argentina; or from events occurring within the Argentine territory, without taking into account the nationality, domicile or residence of the owner or of the parties that intervene.

In the case of foreign beneficiaries, when do the intermediaries, administrators or principals have to withhold the income tax?

Intermediaries, administrators or principals will have to withhold the income tax for the payments made abroad. In addition, they will have to apply and pay the withholdings for the payments made for their own transactions. They are exempt from the withholding when the payers have carried out the withholding or when they do not pay the concepts that are subject to withholding.

When the total or partial payment of the income tax is at the expense of the person that pays the tax. He shall have sufficient funds to pay the tax, and the intermediary, administrative or principal is not obliged to make the draft until it happens.


When are the intermediaries, administrators or principals that receive incomes for foreign beneficiaries obliged to withhold the income tax?

When the payer of the revenue did no pay the withholding, they will have to pay the amount.


When a natural person resides in Argentina

According to the tax legislation, a resident is:

An Argentine person, native or naturalized, except for those who lost their resident status
Aliens who obtained their permanent resident status in the country or who have legally been in the country for twelve months due to temporary authorizations. In this regard, temporary absences for less than 90 days, within every 12 months-period, shall not affect such permanence in the country. In addition, individual persons who do not obtain the permanent resident status and whose permanence in Argentina does not imply an intention of remaining in the territory shall explain the reasons for staying in the country. Said information shall be submitted to the AFIP within the first 30 days of the end of 12 months-period


When does the loss of permanent resident status occurs?

Natural persons, who have the resident status, will lose such status when they become permanent residents in a foreign state, or when they stay uninterruptedly in a foreign country for twelve (12) months.
When temporary stays do not exceed the 90 working or non working days, during every 12 months-period, the continuous stay abroad will not be interrupted.
In the case of uninterrupted stays, the individual persons who remain outside the country for reasons that do not imply that they will remain there, will be entitled to prove such circumstance before the Federal Administration of Public Revenue ( AFIP).



Date as from which the loss of resident status is effective

The loss of resident status shall be effective as of the first day of the month immediately subsequent to the one in which the permanent residence in a foreign state was acquired or as from the date in which the resident status expires.



Foreign beneficiaries. Regulations related to net profits

When an amount of money is paid to foreign beneficiaries, the net profit will be presumed without admitting evidence to the contrary:

When interest or remunerations are paid for credits, loans or funds of any nature as long as they were obtained abroad:

43 %, when the borrower of a credit, loan or fund is a financial institution, or when the transactions involve the financing of imports of movable property (except for automobiles) and said financing is provided by suppliers
100 %, when the borrower of a credit, loan or fund is one of the persons included in Section 49 of this Law
70 % of the salaries, fees and other remunerations paid to individuals who work temporarily in Argentina as writers, technicians, professionals, artists, athletes and others
40% of the lease of movable property made by lessors that live abroad
60% of the rent or lease of real property located in Argentina
50% of the transfer for valuable consideration of the goods located or used in economic activities in Argentina, and of the goods that belong to companies that are established, organized or located abroad
90% of others incomes not mentioned before





Sale of real property in Argentina - Transactions subject to income tax

Steps for the transfer of real property belonging to people living abroad

When the incomes of the transactions belong to a foreign resident and said incomes are subject to the income tax, the withholding agents will have to withhold the amount of tax indicated in the "withholding certificate" issued by this Federal Administration upon request of the representative of said person.


Withholding certificate for people residing abroad?

When the benefits of the transaction belong to a person residing abroad, withholding agents will have to withhold the amount of tax stated in the "withholding certificate" issued by this Federal Administration upon request of the representative of said person.
In addition, the above mentioned representative will have to submit, 20 days in advance to the date of the execution of the deed, Form F.206 (available in Spanish) together with the following documentation:

Acknowledgement of receipt of the transfer of the request made through "Internet"
Copy of the tax return F.145/2 made through the computer program
Copy of the documents that prove the legal status claimed by the representative, who will have to be duly authorized to represent the foreign beneficiary before this Federal Administration
List of the goods located in Argentina, on December 31 of the last 5 years prior to the request, and copy of the documents that prove the ownership of said goods
If appropriate, a copy of the sales contract or equivalent document, corresponding to the sale of the real property for which the certificate is requested
Copy of the payment receipt corresponding to the real estate tax or similar tax. The tax appraisal of the real estate will be based on the real property that belongs to the foreign beneficiary on December 31 of the last 5 years prior to the request. When there are no obligations to pay taxes, the above mentioned representative will have to submit a copy of the certificate that proves such circumstance
Copy of the electric, telephone and gas bills of the real property. Said bills shall be for the last 12 months prior to the request
Copy of the receipts proving the expenditures that could be deducted, if the tax assessment will be made according to the penultimate paragraph of Section 93 of the Income Tax Law (available in Spanish)

When the aforementioned copies are not be authenticated, original copies of said documentation shall be submitted.



Personal Property Tax

Property located in the country owned by individual persons domiciled abroad

Natural or legal persons domiciled in Argentina who have the co-ownership, possession, use, enjoyment, disposal, tenancy, custody, administration or guardianship of goods that are subjected to tax and that are owned by individual persons domiciled abroad will have to make a unique and definitive payment for those properties on December 31 of every year. Said payment shall be the 0.75 % of the value of the property.

The property will be presumed, without admitting evidence to the contrary, to belong to natural persons or undivided estates, when the real estates are located in Argentina and are unexploited, destined to lease, recreation or owned by corporations, companies, permanent establishments. In that case, the applicable rate will be 1.5 %.




Requirements for representatives of the taxpayers who want to be registered in this Administration

In order to be registered as representative of the taxpayer a person will have to submit before this Federal Administration: Form F. 460/F (available in Spanish), the documentation that proves his identity, the by-laws, the document where the domicile by choice appears, the form submitted before the General Inspection of Justice, etc.

Responsible taxpayer:
 
First and last name or corporate name and identification number for taxpayers (CUIT)
 
Status.
Owners of taxable properties domiciled abroad
 
First and last name or corporate name and identification number for taxpayers (CUIT)
 
Domicile (country, province, state, city, street name, house building number, etc.).

When the forms are submitted by authorized persons, proxies or legal representatives, they shall also submit the documentation that proves their capacity.



Does the representative of the taxpayer have to include the non-taxable threshold of ARS305,000?

The abovementioned representatives do not have to include the non-taxable threshold for the calculation of the tax. The representatives of the taxpayers must only pay the tax when the amount exceeds the ARS 255,75. According to the current exchange rate, the equivalent is U$S 82 (eighty two American dollars) or € 60 (sixty Euros).


Must a natural person, who resides abroad and owns real property in Argentina destined to lease, pay the personal property tax?

In this case the taxpayer must pay the Minimum Income Tax because urban real estate destined to lease and owned by natural persons who reside abroad are considered as permanent establishments.


Cases in which agents, representatives or principals who receive incomes from foreign beneficiaries must pay the withholding

They shall pay the withholding when the person who pays the income fails to withhold the tax.


Tax on Presumptive Income

Payment of the Tax on Presumptive Income by a foreign person

According to Law 25063 (available in Spanish), the following must pay the Tax on Presumptive Income: the permanent establishments domiciled or located in the Argentine Republic, the commercial, industrial, agricultural, cattle raising, forest, mining or any other kind of activity developed to obtain a profit, produce goods or render services.


What does permanent establishment mean?

For the purposes of the Tax on Presumptive Income, permanent establishment means any business place where a natural or legal person, an undivided estate, an operating company or a sole proprietorship develops his activity.


This clause includes, among others:

Branches
Operating companies or sole proprietorships
Basis for the rendering technical, scientific or professional services
Agencies or a permanent representations.
Managerial or administrative headquarters
Offices.
Factories
Workshops.
Rural real estates, even if it is not exploited
Mines, quarries or any another places of extraction of natural resources
Execution of civil work, constructions or assemblies


Facilities to store, exhibit or deliver goods destined to the business activity, operating company, sole proprietorship or undivided estate, to whom these belong and the maintenance of stock of the goods.

The maintenance of a permanent business places to acquire goods or gather information for the person, operating company, sole proprietorship or undivided estate, as well as to advertise, provide information for technical or scientific researches for said person, business activity, company, sole proprietorship or undivided estate.


In the case of permanent establishments located in the Argentine Republic, who must pay the Tax on Presumptive Income)

Natural or legal persons domiciled in the Argentine Republic, sole proprietorships or undivided estates located in the Argentine Republic that have the co-ownership, possession, use, enjoyment, deposit, tenancy, custody, administration or guardianship of real estate that is a permanent establishment according to this clause, will be substitute taxpayers of the Presumptive Income Tax, according to the procedure set forth by the Federal Administration of Public Revenue ( AFIP).


A substitute taxpayer of the Presumptive Income Tax, has to consider a minimum threshold for the tax assessment?

There are no legal impediments for a substitute taxpayer to consider the exempt minimum threshold of ARS 200,000 when assessing the tax which is, according to the current exchange rate, approximately equivalent to USD 63,900 (sixty three thousand nine hundred American Dollars) or € 47,200 (forty seven thousand two hundred Euros).


A natural person that resides abroad and owns real property in Argentina destined to lease, has to pay a Presumptive Income Tax?

In this case the taxpayer must pay the Presumptive Income Tax because urban real estate destined to lease and owned by natural persons who reside abroad, are considered as permanent establishments. Natural or legal persons domiciled in the Argentine Republic, sole proprietorships or undivided estates located in the Argentine Republic that have the co-ownership, possession, use, enjoyment, deposit, tenancy, custody, administration or guardianship of real estate that is a permanent establishments shall act as substitute taxpayers of the Presumptive Income Tax.



Tax for the Transfer of Real Estate.

What does this tax levy?

This tax levies the transfer of real estate made by natural persons and undivided estates, if the income tax is not applied to said transfers.


What does transfer of real estates mean?

Transfer of real estate means the transfer to sale, barter, change, lieu of payment, dispose or contribute to companies except for the condemnation, through which the title should be transmitted for a valuable consideration, even when such transfer is made because of a judicial order or bankruptcy proceedings regulated by the Civil Code..

Transfers made by persons residing abroad will be subject to tax when the transfers involve real estate belonging to natural persons or undivided estates.


Application for the withholding certificate – People residing abroad

Proceedings a taxpayer has to follow when transfering real estate belonging to persons residing abroad?

Persons residing abroad or their representatives will have to apply for a withholding certificate before the Federal Administration of Public Revenue (AFIP). Withholding agents will have to withhold the amount that arises from the withholding certificate, except when that price is expressed in foreign currency and the taxable event takes place after said certificate was issued. In that case, the withholding agent will have to re-liquidate the tax by converting the amount subject to withholding using the seller exchange rate quoted by the National Bank of Argentina (available in Spanish), at exchange rate of the closing date of the previous working day. When the operation is carried out by an uncertain price and the market price is unknown, the abovementioned persons must apply for a proof of assessment.


What procedure must be followed when applying for a certificate of whithholding for the transfer of real estate belonging to people residing abroad?

The request of the proof withholding will have to be made with at least 20 days in advance to the date of the act that generates the obligation. The request will have to be made using a computer program called Transfer of Real Estates – version 2.0 release 0. The information will be sent through Internet by means of an electronic transfer of information entering to the web site of the Federal Administration of Public Revenue using the Tax Code. Once the file is sent, the person making the request will enter to the web site, then to Service "Transfer of Real estate", option Confirm Request of General Regime, to verify the transfer of the information and the number assigned to the request. Said procedure will allow the person making the request to make the on line control. Said request will have to be formalized submitting the Form F.206 (available in Spanish) together with the following documentation:

Acknowledgement of receipt of the transfer made through Internet
Copy of the tax return, Form 145/2, made through the computer program called Transfer of Real Estate, Version 2.0 Release 0 (availabe in Spanish)
Copy of the document that prove the legal status claimed by the representative. Said representative will have to be duly authorized to represent the foreign beneficiary before this Tax Administration. The authorization to represent the transferor will have to derive expressly from the power granted
Copy of the documents of the goods that belong to the foreign beneficiary, as of December 31 of the last 5 annual periods, including the real estate subject to the transfer
Copy of the sales contract or equivalent document, for the transfer of real property
Copy of the which includes the tax assessment of all goods included in the request, as of December 31 of the last 5 annual periods, including the real estate subject to transfer
Copy of the electricity, telephone and gas bills, related to the real property that will be transferred; said bills have to be for the last 12 months prior to the request. The original copies of said documentation shall be submitted




Value Added Tax (V.A.T)

Imports

Tax Base
Price defined for the application of import duties. The import duties or the taxes applicable due to said import, excluded the VAT generated by import and the taxes mentioned in the Excise Duties Act (available in Spanish)
Tax Settlement and Tax Payment
Tax is settled and paid with the settlement and payment of import duties


Tax Refund for Exporters

The exporters can recover the tax billed to them for goods, services and leases to export. The recovery is made trough the compensation of the tax the exporters owe for their taxable operations. If the compensation is not possible or it is partially carried out, the surplus will be compensated in other taxes at the expense of the Tax General Directorate, it will be refunded or it will be transfered for the to third parties.



Tax Treatment for the Lease of Real Estate in the Argentine Republic.

The lease of real estate is subject to the value added tax, and the legal rule of the tax establishes that the lease of real estate will be exempted from taxes when some of the following situations occur:


Real estate exclusively destined to be used as house by the lessee and his family
Rural real estate destined to agricultural activities
Real estate in which the lessees are the National State, the Provinces, the Municipalities or the Autonomous City of Buenos Aires, its respective departments and centralized or decentralized entities
The remaining leases, except for real estate destined to conferences, meetings, parties and similar events, when the value of the lease does not exceed the amount of ARS1,500 (one thousand five hundred Pesos) which is, at the current exchange rate, approximately USD 480 (four hundred and eighty American Dollars) or € 354 (three hundred and fifty four Euros).


The tax base will be the one that results from adding to the price agreed in the contract, the amounts that are agreed as complement therein, except for the amounts corresponding to charges, expenses and other costs services to be met by the lessee.

However, in the case of real estate located in the Argentine Republic and owned by natural persons residing abroad, the taxpayer must pay the Presumptive Income Tax because urban real estates which are destined to lease and are owned by natural persons who reside abroad are considered as permanent establishments.

The above mentioned real estate will remain excluded from the Tax on Personal Assets for the substitute taxpayers.

In addition, when said real estates are assessed according to the applicable laws, they will be subject to the Presumptive Income Tax, if the minimum limit exceeds the tax exempt limit of ARS 200,000 (two hundred thousand Pesos). Regarding the Income Tax, foreign beneficiaries will be subject to the 35% withholding of the net profit, which will be levied as final tax. In this sense, the Law establishes that “net profit” shall be the 60 % of the amounts paid as rent or lease for real estate located in Argentina.


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Payment of taxes.


To pay the tax obligations, a person can find the information related to the places authorized to collect the payments and the diverse methods of payment accepted. Access to this information selecting the Tax or Regime.

List of banks authorized to collect the payment of the taxes (available in Spanish)


Value Added Tax (V.A.T )
 
Large taxpayers: pay through a bank wire transfer after generating a VEP – electronic ticket (available in Spanish)
 
Other taxpayers: pay in cash, with a cheque: official cheque, financial cheque, or cashiers’ cheque *, bank transfer,  VEP - Electronic Ticket- (available in Spanish), or through an ATM. * Cheque that must be issued when the amount of money to be paid exceeds the ARS10, 000 (ten thousand Pesos)


Social Security
 
Large taxpayers: pay through a bank wire transfer after generating a VEP – electronic ticket (available in Spanish)
 
Other taxpayers: pay in cash, with a cheque: official cheque, financial cheque, or cashiers’ cheque *, bank transfer,  VEP - Electronic Ticket- (available in Spanish), or through an ATM. * Cheque that must be issued when the amount of money to be paid exceeds the ARS10, 000 (ten thousand Pesos)


Simplified tax as to 06/2004
Taxpayers can pay in cash, with a cheque: official cheque, financial cheque, or cashiers’ cheque *, bank transfer,  VEP - Electronic Ticket- (available in Spanish), through an ATM or automatic bank debit. * Cheque that must be issued when the amount of money to be paid exceeds the ARS10, 000 (ten thousand Pesos)


Simplified regime as from 07/2004
The taxpayers under the simplified tax can pay in cash, with a cheque: official cheque, financial cheque, or cashiers’ cheque *, bank transfer,  VEP - Electronic Ticket- (available in Spanish), through an ATM, automatic bank debit or credit card.* Cheque that must be issued when the amount of money to be paid exceeds the ARS10, 000 (ten thousand Pesos)


Income Tax and Taxes on Personal Assets
 
Large taxpayers: pay through a bank wire transfer after generating a VEP – electronic ticket (available in Spanish)
 
Other taxpayers: pay in cash, with a cheque: official cheque, financial cheque, or cashiers’ cheque *, bank transfer,  VEP - Electronic Ticket- (available in Spanish), through an ATM, automatic bank debit or credit card. * Cheque that must be issued when the amount of money to be paid exceeds the ARS10, 000 (ten thousand Pesos)


Bank wire transfer.

Online banking. To use this service, a person will have to go with the debit card to an ATM of the same bank to obtain the access code.


(available only in Spanish)




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