31/05/2022

Doing Business In Argentina

Doing business Events

Javier Ignacio Fuentes, Tax manager of PGK Consultores in Argentina

TGS’ Doing Business In Argentina webinar was hosted by Javier Ignacio Fuentes on May 30th. Being the tax manager of PGK Consultores in Argentina, he gave plenty of useful information to start a business in this country.

Argentina is the second largest country in South-America. It has become a true regional power and a very attractive place to do business. This webinar gives all the information you need to know before opening a business in Argentina.

What are some legal obligations for businesses in Argentina?

Businesses in Argentina:
– have to register their company in superintendency of corporation,
– must issue and prepare financial statements adjusted by inflation,
– are regulated by the National Securities Commission when listed on stock exchanges and markets.

What is mandatory when hiring an employee in Argentina?

The employer, after registering as such, has to register every dependent worker hired.

There is a trial period of 3 months when an employee is hired. After these 3 months, the employee’s contract turns into an indefinite period contract.

The employer must pay a Supplementary Annual Salary twice a year to their employees in addition to the monthly and periodic salary. Annual vacation is paid and granted in accordance to the amount of days worked in the calendar year.

Every company in Argentina must also pay mandatory contributions to Social Security.

Obelisk of Buenos Aires, Argentina

What taxes will my business and staff face in Argentina?

Taxes are levied on a national and provincial level in Argentina. Other charges are collection on a municipal level.  These include:

 

National taxes in Argentina

– income tax, for both local taxpayers and foreign beneficiaries
– personal assets tax
– VAT, generally 21%
– duty tax

 

Provincial taxes in Argentina

– turnover tax
– stamp tax

 

Municipal charges in Argentina

– contributions are collected for security and hygiene and publicity for instance. However, municipalities cannot collect taxes.

 

 

What transfer pricing rules apply for businesses in Argentina?

Transfer pricing rules apply in Argentina when a business has:
1. A foreign parent company
2. Companies in countries with null or low taxation (below 15%)
3. Companies that don’t sign a cooperation agreement with Argentina.

TGS member, PGK Consultores can help you with all your transfer pricing needs in Argentina.

Learn more about Doing Business In Argentina

TGS “Doing Business In” webinars are a good way to avoid common mistakes when setting up in a new country.

The purpose of this webinar is to discover an investment destination.  Argentina is recognized worldwide for its fast growing economy, strategic location, high level of foreign trade and GDP.

Argentina an attractive growing market to generate local and international business.

Do you plan on opening a business in Argentina?

Contact our local TGS member

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