Are there social security/social insurance taxes1 in Argentina? If so, what are the rates for employers and employees?
Employer and Employee
Argentine nationals and expatriates working in Argentina are subject to social security contributions.
Currently, the employees’ social taxes rate is 17 percent of their gross wages. Note that the employee's contributions are applied on a monthly taxable base of ARS 48,598.08. As regards employers’ social tax rates, they are equal to 23 percent* or 27 percent**, depending on the activity and gross annual income. Employers’ contributions are not capped.
In accordance with the laws currently in force, the employee’s cap is updated every March and September.
In addition to social security treaties, Argentine legislation contemplates other situations of exemption in the payment of Social Security that should be evaluated.
* Employers for all activities, except commercial and service ones, invoicing more than ARS48 million a year.
** Commercial and service activities invoicing more than ARS48 million a year.
Wealth3 Tax – Domiciled in Argentina as of 31 December
The wealth tax is levied on the worldwide assets that individuals domiciled in Argentina hold at the end of the year. Tax rates vary from 0.5 percent to 1.25 percent.
If the total amount of assets, valued according to the Wealth Tax Law, does not surpass the amount of ARS305,000, no wealth tax will apply.
Foreign individuals whose presence in Argentina is based on an employment relationship duly proved and which requires their permanency in Argentina for a period not exceeding five years, are subject to this tax only on assets located in the country, valued according to the law.
As regards employees, if the annual gross compensation surpasses the amount of ARS96,000, their assets valued according to the law are lower than ARS305,000 and they are not registered under the wealth tax, they have to file an informative wealth tax return which due date operates on June 30.
Wealth Tax - Domiciled abroad as of 31 December
Argentina imposes a wealth tax with a 1.25 percent tax rate on assets held in Argentina at the end of the year by individuals domiciled abroad with a non-taxable minimum of ARS20,460.
There are no national inheritance and gift taxes in Argentina. However, regulations at a provincial level must also be analyzed. For instance, there is an inheritance tax in Buenos Aires province.
Yes, each province applies its own real estate tax.
Yes, all sales and services are subject to VAT at 21 percent. (10.5 percent in certain cases).
They are included in the employer´s social security contributions.
Are there additional taxes in Argentina that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
There is a stamp tax which varies from one jurisdiction (provinces) to another.
There is also a tax applied on debits and credits in local checking accounts.
Refer to Real Estate Tax.
Under the concept of “payroll tax” we can include the social security contributions mentioned above, payments to the Labor Risks Insurance Companies (ART) and the union payments - depending on the Bargaining Agreement the company applies.
The following countries have a double taxation treaty with Argentina:
Argentina has concluded social security totalization agreements with the following countries:
Other agreements have been signed but they are not currently in force/fully operational.
1Argentine Law 24241.
2Cap amount in force in March 2015.
3Argentina Tax Act 23966.
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