In Argentina, personal income tax is governed by the Federal Tax Authority (AFIP). Here’s a summary of the key aspects:
Tax System Overview
Tax Residency: Individuals are considered tax residents if they spend more than 183 days in Argentina during the calendar year, or if they have their center of economic interests in the country.
Taxable Income: Tax residents are taxed on their worldwide income, while non-residents are only taxed on their Argentine-source income.
Income Tax Rates
Progressive Tax Rates: Argentina uses a progressive tax rate system for personal income tax. The rates for the 2024 tax year are as follows:
Up to ARS 3,252,500: 5%
ARS 3,252,501 to ARS 6,505,000: 9%
ARS 6,505,001 to ARS 9,757,500: 12%
ARS 9,757,501 to ARS 13,010,000: 15%
ARS 13,010,001 to ARS 16,262,500: 19%
ARS 16,262,501 to ARS 19,515,000: 23%
ARS 19,515,001 to ARS 22,767,500: 27%
Over ARS 22,767,500: 31%
Deductions and Allowances
Deductions: Taxpayers can claim deductions for various expenses, including:
Contributions to retirement plans
Donations to registered charities
Certain educational expenses
Personal Allowances: There are allowances for dependents and other personal circumstances which can reduce taxable income.
Filing and Payment
Annual Tax Return: Individuals must file an annual tax return, typically by the end of June of the following year. The tax year aligns with the calendar year.
Advance Payments: Taxpayers are required to make advance payments throughout the year based on their estimated tax liability.
Additional Information
Social Security Contributions: In addition to personal income tax, employees and employers must make contributions to social security, which is separate from income tax.
International Tax Treaties: Argentina has various tax treaties with other countries to avoid double taxation and prevent tax evasion.
For more detailed information, you can visit the official PwC Tax Summaries website.