Expatriate tax ebook - Argentina

What taxes?

Capital gains tax
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes

Capital gains tax
Argentine laws do not levy a specific tax on capital gains.
Income from the sale of real estate and from trading in shares is exempt from Income Tax.
Income from deposits in Argentine financial institutions is exempt from Income Tax.
Deposits held abroad are levied with Income Tax.

Local taxes
There is a tax on financial transactions, at a rate of 0.6% over the amount of checks and bank transfers.

Real estate tax
The real estate tax is levied by the respective jurisdictions where the properties are situated.
All administrative proceedings inherent in the calculation of the tax are performed by the Tax Authorities on the basis of their own appraisals.

Social security taxes
Individuals residing in Argentina and working in a labor relationship must contribute to the Pension System. For such purpose, the following percentages shall be detracted from their gross salaries: 11% as pension, 3% as privately and/or union-run health insurance scheme and a further 3% as INSSJP (the Argentine Social Security Authorities).

Besides, employers are liable for social security contributions at the 6% and 17% rates.

Stock options
Stock options are deemed to be compensation in kind and the individuals who receive them are levied with tax at the time the option is granted.

Wealth tax
The Personal Property Tax is levied on movable property and real estate situated both in Argentina and abroad.

Expatriates are liable for this tax only as regards the assets situated in Argentina for a term of five years since their arrival in the country.

Individuals are liable for the Personal Property Tax when they own assets in excess of $ 305,000. The tax rate is progressive and it ranges from 0.5% to 1.25% of the assets levied with this tax.

The individuals considered to be taxpayers for Personal Property Tax purposes are subject to a scheme consisting in five bi-monthly advance payments which shall be deductible in their next tax return.

Information about Argentina:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities