Argentina payroll and tax overview.

Argentina is one of the largest countries in South America by both landmass and population. Situated at the southernmost tip of the continent, Argentina shares land borders with Chile to the west, and Bolivia, Paraguay, Brazil and Uruguay to the north and north-east. Located between the Atlantic and Pacific Oceans, Argentina has historically been a significant global trading destination, rich in natural resources and with useful connections to the rest of the southern Americas. After industrialising rapidly, Argentina’s profile grew in the 20th century as the agriculture, manufacturing, and tech industries developed into large domestic markets and attracted international interest. Today, Argentina remains a relatively wealthy and stable power with a 2019 GDP of over $450 billion and important industrial sectors including food, wine, tobacco, automobiles, textiles, energy, pharmaceuticals, and mining. With a range of natural beauty spots and vast biodiversity, Argentina’s tourism sector is also growing in economic importance. Still considered an emerging market, Argentina is a member of the G20, the WTO, and the United Nations, and is ranked 2nd (behind Chile) on the Human Development Index amongst other Latin American nations. In 2019, Argentina was ranked 126 on the World Bank’s Ease of Doing Business Survey.

Why Invest in Argentina?

Investors interested in Argentina should consider the following factors:

• Economic Benefits: Argentina is one of the largest regional economies (after Mexico and Brazil), with the second-highest GDP (over $545 billion). Since 1993, Argentina’s growth rate has been around 0.64% - and reached 2.7% in the second quarter of 2017.
• Industrial Diversity: Business opportunities in Argentina cover a diverse range of industries and sectors. Showing particular potential at the moment are the agricultural automotive, high-technology, and fossil fuel sectors. The Argentinian government is also pledging a commitment to support the renewable energy sector.
• Geographic Advantage: Argentina is a gateway to South and Central America, with excellent shipping, road, rail and air links, including 23 international airports. Argentina ranks consistently high on the Logistics Performance Index in terms of the ease and affordability it offers businesses arranging international shipments.
• Market Access: As a member of the MERCOSUR regional bloc, Argentina enjoys a range of commercial benefits including free trade access to the markets of Brazil, Paraguay, and Uruguay. The Argentinian government is aiming to expand its international trade agreements over the coming years.
• Educated Workforce: Argentina has a population of over 43 million people, a high proportion of which hold a secondary education qualification or higher. Argentinian workers have some of the highest levels of English language proficiency in the region.

Foreign Direct Investment in Argentina

The government has focused on developing a stable economy and political environment to provide businesses with a consistent economy to operate within. The government welcomes inward investment from foreign entities, particularly in growing markets that are key for the long-term future.

Registering a Company and Establishing an Entity in Argentina

The company must be registered in:

IGJ: Justice Minister (between 2 and 3 months)

AFIP: Tax and Social Security Authority (2 or 3 weeks)

Rentas: Municipal or District Authority (2 or 3 weeks)

Business Banking in Argentina

It is mandatory to make payments to employees from an in-country bank account. To make payments to the authorities, the company must use the Interbanking Web Platform.

Banks are usually open from 10:00 until 15:00, depending on the city and season. They are closed on Saturday and Sunday.

Working Days in Argentina

The working week in Argentina is Monday to Friday and the working day is generally eight hours long. Working hours are normally 9.00 am to 6.00 pm, with one hour for lunch.

Basic Facts About Argentina

Between the Atlantic and Pacific oceans, Argentina lies at the southernmost point of South America, sharing the edge of the continent, and its western land-border, with Chile. Civilisation has existed in the region which became Argentina for millennia, but the territory was colonised by Spain in the 16th century. Operated as a colony for over 100 years, Argentina eventually declared, its independence in 1818 - a moment followed by a period of civil war lasting until 1861. Abundant natural resources, and rapid industrialisation, saw Argentina become one of the region’s wealthiest and most developed nations in the 20th century - and today it retains that influence as a member of the G20, the United Nations and other international organisations. As one of the largest territories in South America, Argentina’s landscapes are diverse, ranging from jungles, grasslands, beaches and deserts, to the western mountains of the Andes. Generally a temperate climate, Argentina experiences a variety of seasonal temperatures, and includes a vast amount of biodiversity - which has contributed to growing tourism interest from across the world.

General Information

Population: 45.38 million (World Bank, 2020)

Capital: Buenos Aires

Major Language: Spanish

Monetary Unit: Argentine peso

Main Exports: Soybeans, wheat, maize, animal feed, flour and vegetable oils

GDP: 383.1 billion USD (World Bank, 2020)

Internet Domain: .ar

International Dialing Code: +54

The Tax Year runs from 1st January to 31st December. A company must be licensed to make any tax and/or social security filing on behalf of a client.

Income Tax in Argentina

Employee deductions for taxes range from 5% to 35% depending on income level.

Monthly contributions must be made from the 9th - 11th of every month to the tax authority.

The typical penalty awarded for the late submission is $AR 400 and payment of tax contributions is variable (approximate 0.1 % per day over the total amount).

Social Security in Argentina

Employee deductions for social security are as follows:

• 11% Pension Fund System
• 3% Health Insurance
• 3% Law 19032

Employer contributions for social security are:

• 18% or 21% Pension Fund System (depending the total head count and the annual earnings of the company)
• 6% Health Insurance
• Accident Insurance is between a fixed value (ARS 0.60 per employee and a rate over the total salary). This rate will be established to the company according to the specifications of itself
• ARS 19.03 per each employee for Life Insurance

Monthly contributions must be made from the 9th -11th of every month to the tax authority.

The typical penalty awarded for the late submission is $AR 400 and payment of tax contributions is variable (approximate 0.1 % per day over the total amount).

New Employees in Argentina

A new employee must be registered with “Mi Simplificacion”, an online form on the AFIP website.

New employees must be registered on the same day that they commence employment with a new company, but it is recommended that they do it at least 24 hours before starting.

The following information is required to set up a new start:

• Full Name
• Social Security Number
• Start Date
• Position
• Cost Centre
• Labour Contract or Offer Letter signed by the company
• Salary
• Marital Status
• Family (spouse and children, if applicable)
• Health Insurance Number
• Address
• Telephone Number

Expat new starts must provide the above information, however they must also provide a passport and Argentina Migration Authorities approved visa. Expat new starts have 90 days to be registered with the relevant authorities.

Leavers in Argentina

A leavers final payment must be released four working days after the employee has left the company.

When an employee leaves, the company must update the employee information in “Mi Simplificacion”, stating the employee’s last working day four days after.

Payroll in Argentina

In Argentina, a signature on the receipt of a payslip is a legal requirement. It can be digitally signed as long as it complies with current regulations and the digital signature is provided by an entity authorized for this purpose. By law, payroll reports must be kept for two years, but the legal salary book must always be kept.