Similar to the turnover tax, real estate tax is imposed by each Argentine jurisdiction. The exempt items include books, planes and services such education, religion and medical assistance. Argentina’s Central Bank is responsible for regulating and supervising financial institutions, as well as the establishment of foreign bank branches. International Supplies of Goods and Services. You will not continue to receive KPMG subscriptions until you accept the changes. Published: 10/12/2020 Sales Tax Rate in Argentina is expected to reach 21.00 percent by the end of 2020, according to Trading Economics global macro models and analysts expectations. Typically, the tax applies to gross revenues derived from activities carried out in each jurisdiction. Buenos Aires has made e-services provided by foreign internet services companies subject to Turnover Tax from the start of 2015. Last modified 7 Jul 2020 reduced rate) for VAT/GST and other indirect taxes? Turnover tax (gross income tax) Each of the 24 jurisdictions into which Argentina is divided imposes a tax on gross revenues from the sale of goods and services. These include, but are not limited to, the following: Main social taxes and contributions assessable on salaries are as follows: Navigate the tax, legal, and economic measures in response to COVID-19. Applies to: Oracle Receivables - Version 12.1.2 and later Information in this document applies to any platform. The accumulation of tax is avoided through the deduction of VAT invoiced to the entity. In the long-term, the Argentina Sales Tax Rate - VAT is projected to trend around 21.00 percent in 2021, according to our econometric models. Any passenger transportation operating inside the country when the distance does not exceed 100 km. Argentina. Income tax rates are 9% to 35% for residents and 24.5% for nonresidents. Stamp tax: 1 percent of the total value of the contract or instrument. the amount of their total annual sales exceeds the amount to be considered a small and medium-sized enterprise. The general rate is 0.6%, however there are increased rates of 1.2% and reduced rates of 0.075%. Does an overseas company need to appoint a fiscal representative? By continuing to browse this site you agree to the use of cookies. Certain capital goods, depending on the Customs Duty Code. Individuals residing in Argentina are subject to tax on income arising from both Argentine and foreign sources. Nevertheless, input VAT related to these transactions can either be used as a credit against output VAT or refunded pursuant to a special procedure. All the compensation paid in Argentina or abroad for work performed for the local company will be considered as local compensation and should be reported to the tax and social security authorities, as the case may be, and included in the salary slips and recorded in the local labour books. Error! Argentina VAT and Turnover Tax news. This means VAT is not levied on the output but VAT paid on inputs may be recovered through tax refunds, which the taxpayer may request after delivering the services. Sales of goods from the mainland to the special customs area are considered exports. if the annual turnover is below the relevant VAT/GST and other indirect taxes registration threshold)? Income tax for rental properties is a flat 21%. As a result of the 2017 tax reform, VAT legislation has also been amended to include ‘digital transactions' (e.g. The local entity must issue salary slips every month for each employee included on its payroll, considering the total compensation mentioned above. In view of the above-mentioned factors, economic groups with subsidiaries in Argentina must verify the impact of inflation in terms of Income Tax in order to avoid being subject to tax on fictitious earnings. taxis, buses) up to 100 km; and international transportation. As a general rule for services, the tax point is triggered when the service provided is finalized or with the collection of all or part of the price. Turnover Perceptions are reported and accounted separately for each province. transactions carried out by commission agents, consignees and other who sell or buy personal property in their own name but on behalf of third parties. foreign entities with no permanent establishment. The tax is levied on the sale of goods or the performance of services within a given jurisdiction. Each jurisdiction provides different tax Click anywhere on the bar, to resend verification email. In South Africa, the turnover tax is a simple tax on the gross income of small businesses. Capital taxes and taxes on securities Further corporate tax features Taxation Loss carry-overs Five year carry-forward against profits of the same source and kind. import of services), including digital services. (For news: Argentina VAT news) Summary. Some goods may have a different treatment. Are audits done electronically in your country (e-audit)? However, the time limit of five years prescribed by the statute of limitations is applied. A reduced rate of 10.5% applies to certain transactions, including (but not limited to) the following: VAT paid on purchases, final imports, and rental of automobiles not considered as inventory cannot be computed by the purchaser as a VAT credit. Income tax on indirect transfers can also be carried on with no tax costs if it is an intragroup transfer. The turnover tax is an indirect provincial tax imposed by the tax authorities in each of the 24 jurisdictions in Argentina (including 23 provinces and the City of Buenos Aires). All of Argentina’s provinces and the City of Buenos Aires levy turnover tax on the gross turnover of any enterprise engaged in a commercial, industrial, agricultural, financial or professional activity. The present general rate for this tax is 21%. — VAT: 21% (standard rate) also 10.5% (among others, capital goods, meat and grains), 27% (public services such gas and electricity), 2.5% and 5% (newspapers and magazines). The Republic of Argentina is made up of 23 provinces plus the Autonomous City of Buenos Aires, its capital. An annual wealth tax is levied on the shares or holding in the capital of local companies owned by individuals or undivided estates domiciled in Argentina or abroad, and/or companies and/or any other type of legal person domiciled abroad. Hence, these types of services are now subject to VAT at a 21% rate if they are supplied by a non-resident entity to an Argentine customer, provided that they are effectively used in Argentina. 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