This article provides guidance on managing reimbursable business expenses in Argentina. It ensures compliance with Argentine Income Tax Law (Ley de Impuesto a las Ganancias – LIG) and VAT regulations, under the supervision of ARCA (Agency for Revenue Collection and Customs Control), the autonomous body responsible for tax collection and audit enforcement within the Ministry of Economy.
Proper documentation and classification are critical to ensure reimbursements are treated as business expenses and not taxable compensation.
1. Travel & Mileage Reimbursement
Mileage Rate
Argentina does not establish an official per‑kilometer reimbursement rate under tax law.
The company applies a company‑defined rate (reviewed periodically to reflect fuel and maintenance costs).
Mileage reimbursement applies only to bona fide business travel.
Commuting between home and the regular workplace is not reimbursable.
Documentation Requirements
Employees must submit a mileage log including:
Travel date
Origin and destination
Business purpose
Odometer start and end readings
Total kilometers travelled
Mileage must reflect actual business kilometers only.
Tax Treatment
Mileage must be classified as a business expense, not compensation.
Poorly documented or excessive mileage reimbursements may be reclassified as taxable employment income during ARCA audits.
2. Parking, Tolls & Fees
Reimbursable
Parking fees
Tolls related to business travel
Requirements
Must be submitted separately from mileage claims
Valid receipts are required
Not Reimbursable
Traffic fines
Parking violations
These are classified as personal expenses and cannot be reimbursed or deducted.
3. Expense Reasonableness & Limitations
Argentina does not impose statutory monetary caps on expense reimbursement.
All expenses must be:
Necessary
Reasonable
Directly linked to business activity
Audit Risk
ARCA may disallow:
Excessive expenses
Poorly justified reimbursements
Non‑business or unclear claims
Disallowed expenses may be reclassified for tax and social‑security purposes.
4. Transportation Modalities
The following transportation expenses may be reimbursed when business‑related:
Air travel
Train, bus, tram
Taxi or ride‑hailing services
Rental cars
Mandatory Requirements
For all transport types:
Valid receipt or ticket
Supplier CUIT/CUIL tax ID
Date
Amount
Description of service
Business purpose justification
Reasonable cost level
Rental cars require:
Invoice
Justification for business use
Only the business‑use portion is reimbursable tax‑free
5. Invoicing & Documentation Standards
To be deductible and non‑taxable, all expenses must be supported by formal invoices (facturas).
Invoices Must Include
Supplier name
CUIT/CUIL
Date
Description of goods/services
Total amount and VAT (IVA) breakdown
Supplier stamp or signature (if applicable)
Invoice Issuance
Invoices should identify the payer as: Horizonte Argentina S.R.L.
There is no minimum threshold, all expenses require a proper invoice, even small amounts.
VAT Treatment
VAT‑eligible expenses must be invoiced in the company’s name.
VAT credits (21% standard rate) may be recovered in line with VAT Law, Article 12.
Invoices not issued correctly may cause VAT to be non‑recoverable.
6. Per Diems & Representation Allowances
Per Diems
Per diems may be non‑taxable only if:
Defined in a written company policy
Reasonable in amount
Linked to business travel
Substantiated with travel proof
Overly generous or undocumented per diems are considered taxable salary under LIG Article 79(b).
Client Entertainment & Gifts
Deductible only if:
Directly related to business activity
Supported by compliant invoices
High‑value or non‑business gifts may be taxable.
7. Non‑Deductible Personal Expenses
The following are not reimbursable and not deductible under LIG Article 81(g):
Medical expenses
Gym memberships
Therapy or wellness services
Recreational activities
Exception:
Employer‑provided health plans structured under compliant benefit schemes.
8. Reimbursable vs. Non‑Reimbursable Summary
✅ Reimbursable (With Valid Invoice)
Business travel (air, rail, taxi, rental car)
Parking and tolls
Lodging and meals during business travel
Client entertainment and reasonable gifts
❌ Not Reimbursable
Traffic or parking fines
Personal health and wellness expenses
Excessive or non‑business expenses
9. Compliance & Record‑Keeping
ARCA Requirements
Expenses must be justified, necessary, and properly documented.
Poor documentation may lead to:
Disallowed deductions
Reclassification as taxable compensation
Retention Period
Documentation must be retained for five fiscal years.
Payroll Interaction
Business reimbursements should notbe included in:
Fourth‑category income
Employee withholding bases
Incorrect classification may trigger payroll tax adjustments.
10. Policy Enforcement & Submission
Expense reports must be submitted within 30 days of travel completion.
Missing, late, or non‑compliant submissions may be:
Rejected
Reclassified as taxable income
Audit & Review
Finance and Compliance teams review all expenses.
Grey‑area expenses should be escalated before being incurred.