Argentina corporate tax - guide for international expansion

Are you considering expanding your business to Argentina? Understanding the corporate tax landscape is crucial for making informed decisions about entering this dynamic South American market.

Argentina offers significant opportunities for international businesses, with its large domestic market, skilled workforce, and abundant natural resources. However, navigating the tax system requires careful planning and compliance with local regulations. Whether you're exploring market entry, setting up operations, or managing existing business activities, having a clear grasp of corporate tax obligations will help ensure your venture's success.

If you're looking for efficient ways to manage international payments and reduce currency exchange costs, Wise Business can help streamline your financial operations across borders, making it easier to handle tax payments and business transactions in Argentine pesos.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Argentina Corporate Tax Rate in 2025

The corporate income tax in Argentina is applied on the worldwide income of Argentine resident companies and on Argentine-source income of non-resident companies. Since fiscal years beginning on or after January 1, 2025, the country applies a progressive rate structure, with rates ranging from 25% for lower levels of taxable income up to 35% for higher levels.¹

Argentina's corporate tax system includes several key features that businesses need to understand. Companies are subject to tax on their net taxable income, which is calculated based on accounting profits with specific tax adjustments.¹

Although there is no general reduced corporate tax rate for small and medium enterprises (SMEs), Argentina does offer relief through special regimes and incentive programs under strict eligibility criteria. Examples include investment-focused schemes such as the Large Investment Incentive Regime (RIGI), which provides preferential rates for qualifying projects.²

The country also imposes additional taxes that affect the overall tax burden, including the minimum presumed income tax mechanism and various provincial and municipal taxes, such as the turnover tax (“Ingresos Brutos”), which vary by jurisdiction.³

Read more about Corporate Tax Planning best practices

How to Pay Corporate Tax in Argentina

The payment of corporate income tax in Argentina must be made in Argentine pesos (ARS) through the national tax authority (ARCA). Companies are required to register with the tax authority and obtain a CUIT (tax identification number) before engaging in significant taxable operations.⁴

The payment system operates via a combination of advance payments (anticipos) and a final settlement. Companies are obliged to make periodic advance payments during the tax year, calculated under rules set by regulation (e.g., based on a percentage of prior year liability or estimated current income).⁵

Annual corporate tax returns must be filed in the fifth month after the fiscal year-end in typical practice, for a December 31 year-end, that meant filing by May 31.⁵ Once the return is filed, the final tax liability is determined and compared with the advance payments. If the prepayments fall short, additional payment must be made; if there is an overpayment, credits or refunds may apply.⁵

Late payments incur compensatory interest, assessed from the day after the due date, at rates set periodically by the tax authority. Given Argentina’s inflationary and interest-rate environment, these interest charges can become significant.⁵

For a company with an annual turnover of ARS 1.5 billion (approximately £1.5 million at current exchange rates), assuming a 10% profit margin, the taxable income would be ARS 150 million. At the 35% corporate tax rate, the annual tax liability would be:

ARS 150,000,000 × 35% = ARS 52,500,000

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Tax Compliance in Argentina

The crucial steps to keep your business fully compliant with Argentina’s tax regulations:⁶

• Submit financial statements on time: Corporations (Sociedades Anónimas) must file annual statements with the Inspección General de Justicia (IGJ). Limited Liability Companies (SRLs) with capital over AR$2 billion must also comply. Depending on the industry, submissions may also be made to the Comisión Nacional de Valores (CNV), Superintendencia de Seguros de la Nación (SSN), or the Central Bank of Argentina (BCRA).
• Conduct mandatory audits: Under Article 299 of the Companies Law No. 19.550, corporations that exceed AR$2 billion in capital, make public offerings, or operate under public concessions must have their financial statements audited by an independent CPA. Similar rules apply to qualifying SRLs and entities overseen by the CNV, SSN, or BCRA.
• File and pay taxes promptly: Argentina follows a self-assessment system. Corporate tax returns are due within five months of the fiscal year-end. Delays may result in penalties for not filing corporate tax returns, including fines and interest charges. Recent corporate tax reform initiatives aim to streamline filing and improve compliance monitoring.

By meeting filing deadlines and adhering to audit requirements, businesses can maintain good standing and avoid penalties while operating in Argentina.

International Expansion to Argentina

International investors are finding fresh momentum in Argentina, where economic reforms and industry potential are carving out the business landscape. Its economy is supported by strong sectors such as agriculture, energy, mining, information technology, health, and administrative services.

Tourism is also critical, generating 5.3% of national exports and attracting 6.6 million visitors in 2024. The country has the largest ski infrastructure in the southern hemisphere, twelve UNESCO heritage sites, and a wine industry ranked seventh worldwide. These features contribute to Argentina’s growing reputation as a hub for trade and investment in South America.⁷

The administration of President Javier Milei has launched wide-ranging reforms to stabilize the economy and restore investor confidence. Key measures include reducing inflation, balancing the budget, and privatizing state-owned enterprises.⁸ Moreover, the Ley de Bases passage in 2024 introduced the Incentive Regime for Large Investments (RIGI). It is a framework that provides generous tax incentives to foreign investors. This pro-investment stance strengthens Argentina’s position as an attractive destination for multinational companies.⁹

Not only this, but foreign businesses also benefit from the country’s competitive talent pool. Argentina ranks second in English proficiency in Latin America and has a well-educated workforce in technology, tourism, and business services.⁷

Investors can further use Argentina’s corporate tax outsourcing to navigate local compliance rules efficiently. Recent corporate tax news has highlighted reforms that aim to simplify obligations and increase transparency. Despite concerns that Argentina has one of the highest corporate tax rates in the world, updated rules have introduced thresholds that ease the burden for smaller businesses.

To open a business in Argentina, you have to:¹⁰

1. Conduct market research and develop a business plan.
2. Choose and reserve your company name.
3. Appoint a Power of Attorney to handle legal requirements.
4. Publish your company's creation in the official gazette.
5. Register with the Public Registry of Commerce.
6. Obtain a Unique Tax Identification Code (CUIT) from AFIP.
7. Open a corporate bank account.

Argentina is an attractive choice for global investors with a clear strategy. Success often hinges on adapting to local practices, such as adhering to the tax policies and being aware of the top payment methods in Argentina.

Discover the top 5 best Corporate Tax softwares

Incorporation of Business in Argentina

To incorporate a business in Argentina, you must register with the Public Registry of Commerce (PRC). Below are the main steps in the process:¹¹

1. Reserve a company name: File Form No. 3 with the Inspectorate General of Justice (IGJ). You can propose up to three names for approval.
2. Pay the incorporation tax: Corporations (S.A.) pay a one-time corporate establishment tax, while limited liability companies (S.R.L.) pay a retributive tax. Both are settled at the National Bank of Argentina.
3. Publish a legal notice: Companies must announce their formation in the Official Gazette. The notice should include shareholder information, company domicile, corporate purpose, capital contributions, fiscal year-end date, and details of management and legal representatives.
4. Deposit initial capital: At least 25% of the subscribed capital must be deposited into a bank account during registration.
5. Draft the bylaws: A local notary prepares the founding documents (bylaws) that govern the company’s operations.
6. Register and obtain CUIT: Submit documents to the PRC for approval. Once confirmed, apply for the Unique Tax Identification Code (CUIT) with the Federal Public Revenue Administration (AFIP).
7. Opening a corporate bank account: This is required to carry out financial operations legally.

Types of Businesses in Argentina

According to the Argentine Companies Law (Law No. 19,550), the most common business structures are:^{6 12}

• Corporation (Sociedad Anónima – S.A.): Designed for large companies. Requires at least two shareholders and a minimum capital of AR$30,000,000 (25% paid upfront). Managed by a Board of Directors with mandatory annual shareholder meetings.
• Limited Liability Company (Sociedad de Responsabilidad Limitada – S.R.L.): Often used by SMEs. Requires 2 to 50 partners with liability limited to their quotas. No set minimum capital, but contributions must fit the business activity.
• Branch (Sucursal): This allows a foreign company to operate locally without forming a new legal entity. The parent company must register the statutes and appoint a local representative. No minimum capital is required.
• Simplified Stock Corporation (Sociedad por Acciones Simplificada – S.A.S.): Introduced under Law No. 27,349 for startups and SMEs. Offers simplified governance, limited liability, and flexible capital requirements.

Note: The “PAIS” tax (applied to foreign currency transactions like imports of goods/services, credit/debit card spending abroad, etc.) expired on December 23, 2024. This could reduce the cost burdens for imported goods and help foreign investors.

International Corporate Tax Best Practices

When operating internationally, businesses should implement comprehensive tax strategies to ensure compliance while optimizing their tax position. This is particularly important in Argentina, where tax regulations are complex and frequently updated.

Maintaining detailed documentation is essential for Argentine tax compliance. Companies must keep comprehensive records of all transactions, including supporting documentation for expenses, revenue recognition, and transfer pricing arrangements. The tax authorities conduct regular audits and require extensive documentation to support tax positions.

Understanding double taxation treaties is crucial for international businesses. Argentina has signed tax treaties with numerous countries to prevent double taxation of income. These treaties can provide significant benefits, including reduced withholding tax rates on dividends, royalties, and interest payments between treaty countries.

Transfer pricing regulations in Argentina are particularly stringent, requiring companies to demonstrate that intercompany transactions are conducted at arm's length. This includes maintaining detailed transfer pricing documentation and potentially obtaining advance pricing agreements for significant transactions.

Regular consultation with local tax advisors is recommended given the complexity and frequent changes in Argentine tax law. Professional guidance helps ensure compliance with evolving regulations and can identify opportunities for tax optimization within the legal framework.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Argentina efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate Tax in Argentina

Who is liable for corporate tax in Argentina?

All companies incorporated in Argentina are liable for corporate tax on their worldwide income. Foreign companies are subject to Argentine corporate tax only on their Argentine-source income. This includes income from business activities conducted in Argentina, rental income from Argentine properties, and capital gains from the sale of Argentine assets.

Are there any tax incentives for businesses in Argentina?

Argentina offers various tax incentives, particularly for investments in certain sectors and regions. The country provides benefits for companies investing in technology, renewable energy, and manufacturing. Special economic zones and industrial promotion regimes offer reduced tax rates and other incentives. Additionally, companies investing in less developed provinces may qualify for accelerated depreciation and other tax benefits.

What is the tax treatment of dividends in Argentina?

Dividends distributed by Argentine companies to shareholders are subject to a 7% withholding tax for residents and 35% for non-residents, though this may be reduced under applicable tax treaties. The withholding tax is applied at the source when dividends are paid or credited to shareholders.

What is the process for registering for corporate tax in Argentina?

Companies must register with ARCA (the federal tax authority) to obtain a CUIT (tax identification number). This process requires submitting incorporation documents, appointing a legal representative, and providing detailed information about the company's activities. Registration must be completed before commencing business operations in Argentina.

What are the common pitfalls to avoid regarding corporate tax in Argentina?

Common pitfalls include failing to make timely advance tax payments, inadequate transfer pricing documentation, non-compliance with currency control regulations, and insufficient record-keeping. Companies should also be aware of the minimum presumed income tax, which can apply even when companies report losses. Additionally, frequent changes in tax legislation require constant monitoring to ensure ongoing compliance.

Sources used in this article:

1. PwC Tax Summaries: Argentina Corporate Income Taxes
2. PwC Tax Summaries: Argentina Tax Credits and Incentives
3. PwC Tax Summaries: Argentina Other Taxes
4. AFIP: Tax Agency Login Portal (Spanish)
5. PwC Tax Summaries: Argentina Tax Administration
6. Kreston: Establishing a Business in Argentina
7. UN Tourism: Investing in Argentina
8. U.S. Department of State: 2024 Investment Climate Statements - Argentina
9. Atlantic Council: Argentina's New Investment Promotion Regime
10. Biz Latin Hub: 10 Steps to Start a Business in Argentina
11. Argentine Ministry of Foreign Affairs: Investors Guide (PDF)
12. Legal 500: Doing Business in Argentina Guide (PDF Export Link)

Sources last checked 02/10/2025