As a consequence of a recent tax reform, the CIT rate for fiscal years beginning on or after 1 January 2021 has been set as follows (indexed as of 2023):
- Taxable income from ARS 0 to ARS 14,301,209.21: 25%.
- Taxable income from more than ARS 14,301,209.21 to ARS 143,012,092.08: ARS 3,575,302.30 + 30% on the amount that exceeds ARS 14,301,209.21.
- Taxable income from more than ARS 143,012,092.08: ARS 42,188,567.16 + 35% on the amount that exceeds ARS 143,012,092.08.
Legal entities resident in Argentina are subject to tax on Argentine and foreign-source income. Resident legal entities are able to claim any similar taxes actually paid abroad on foreign-source income as a tax credit. The tax rate applies on net income determined on a worldwide basis.
The 2021 tax reform also introduced a withholding tax (WHT)on dividend distributions and branch profit remittances at a rate of 7%.
The 2017tax reform abolished the so-called ‘equalisation tax’ for profits generated in taxable years starting on or after 1 January 2018. The equalisation tax was a WHT levied at a 35% rate on dividend distributions in excess of tax earnings. The equalisation tax, however, remains applicable on dividend and branch profit distributions made out of earnings accumulated prior to 1 January 2018 and which were in excess of tax earnings as of the year-end prior to the relevant distribution.
Argentine-source income (e.g. royalties, interests) received by foreign entities is subject to WHT in full and final settlement at source (see the Withholding taxes section).
Tax on minimum notional income
The tax on minimum notional income has been repealed as of 2019.
Local income taxes
For a description of the local (jurisdictional) tax on gross revenues from the sale of goods and services, see Turnover tax in the Other taxes section.
FAQs
As a consequence of a recent tax reform, the CIT rate for fiscal years beginning on or after 1 January 2021 has been set as follows (indexed as of 2023): Taxable income from ARS 0 to ARS 14,301,209.21: 25%.
What is the income tax system in Argentina? ›
Argentina has a progressive tax on personal income that is collected as a deferred tax. It also has a flat rate tax on business income (corporate tax) - 35%. There is a stamp tax of 1.5% on the total value of real property, whether it gained or lost value, as opposed to just 1.5% applied only to realised capital gains.
How are businesses taxed with the corporate income tax? ›
It applies to a company's income, which is revenue minus expenses. In the U.S., the federal corporate tax rate is a flat rate of 21%. States may also impose a separate corporate tax on companies.
What is the corporate tax rate in South America? ›
South America has the highest average statutory corporate tax rate among all regions at 28.38 percent. Asia has the lowest average statutory corporate tax rate among all regions at 19.80 percent.
What is the corporate income tax in Latin America? ›
According to the World Bank, the average corporate tax rate in Latin America and the Caribbean was 30% in 2022, ranging from 30% in Mexico to 34% in Brazil. Latin American tax laws are notorious because they can be complex, and compliance can be time-consuming and costly for foreign investors.
Who pays income tax in Argentina? ›
Individuals resident in Argentina are taxable on worldwide income and may obtain a foreign tax credit for taxes paid on income from foreign sources. Non-residents and foreign beneficiaries are only taxable on their Argentine-source income.
How is corporate income tax calculated? ›
How Does the U.S. Corporate Income Tax Work? Like most other countries, the United States levies a tax on the net profits — that is, the total income minus the costs associated with generating that income — of corporations.
Why is corporate income tax so low? ›
In addition to cutting tax rates since the 1980s, state policymakers have enacted several corporate tax breaks that reduce the share of income that corporations pay in California corporate taxes, and which restrict the revenue available for public services. • California's state budget would have received $13.3 billion ...
Which state has no corporate tax? ›
South Dakota and Wyoming are the only states that levy neither a corporate income nor gross receipts tax. Unlike a sales tax, a gross receipts tax is assessed on businesses and apply to business-to-business transactions in addition to final consumer purchases, leading to tax pyramiding. .
Does Argentina tax foreign income? ›
In Argentina, residents are taxed on all the income they make — regardless of if it was made in Argentina or internationally. However, non-residents are only taxed on the income they make in Argentina.
In Latin America, 55% of national income is captured by the top 10% of the population,1 making it one of the most unequal regions in the world. Inequality is an issue with negative consequences not only for low-income sectors, but for the population as a whole.
Does Argentina have income inequality? ›
In both Argentina and Brazil, income inequality has remained a persistent issue, but inequalities in access to essential services such as education and healthcare have also played an important role.
Does Argentina have a wealth tax? ›
Individuals domiciled in Argentina as of 31 December, are subject to an annual wealth tax on their worldwide taxable personal assets exceeding the minimum exempt threshold as of 31 December, without consideration of liabilities. These taxable assets include, among other items, real estate, cars, and bank accounts.
What is the lowest Corporate Tax Rate in South America? ›
Corporate tax rate - Country rankings
The average for 2020 based on 11 countries was 28 percent. The highest value was in Suriname: 36 percent and the lowest value was in Paraguay: 10 percent. The indicator is available from 1960 to 2024. Below is a chart for all countries where data are available.
What is the corporate income tax rate in Brazil? ›
Rate: Corporate income tax (IRPJ) is levied on the taxable profits of an entity at a rate of 15%. However, taking into account the surtax and the social contribution on net profits (see “Surtax” below), the combined nominal rate is 34%.
