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About AFIP
The “Administración Federal de Ingresos Públicos” (AFIP) is an autarchic agency formed in 1997 which main function is to enforce the tax and custom policy. The agency performs, among others, the following activities and functions:
	To enforce, collect and control taxes and incidental taxes pursuant to the provisions of the pertinent statutory rules.
	To levy taxes on the operations performed in the territory and jurisdictions where the national tax authority is entirely or partially empowered to exercise it.
	To levy taxes on imports and exports of goods and other operations governed by the pertinent custom rules and laws.
	To impose fines, extra charges, interests, security and any other incidental expenses that could arise from the enforcement and fulfillment of the statutory rules.
	To control International trade pursuant to the provisions of the pertinent statutory rules
	Classification of tariffs and assessed valuation of goods.
	All functions relating to its mission and the ones necessary for its internal management.
The “Administrador Federal de Ingresos Públicos” is the highest authority within the AFIP and he/she is appointed by the Executive Branch and endorsed by Congress.
AFIP is divided into three General Departments:
	Dirección General Impositiva: its main function is the enforcement, collection and control of national taxes.
	Dirección General de Aduanas: its functions, among others, are the collection of taxes levied on imports and exports, and control of international trade. Its own powers as well as the powers delegated to different organisms or the power delegated on the Customs enable them to perform these functions.
	Dirección General de Recursos de la Seguridad Social: the main tasks of this Department are to collect and control the resources that fund Social Security assistance. For that purpose, it is supported by other organizations and institutions that share complementary powers (for instance, the National Labor Department) with them.

	Tax legislation and administration
	Income Tax
	Personal Assets Tax
	Presumptive Minimum Income Tax
	Value Added Tax
	Excise Taxes
	Liquid Fuel and Natural Gas Taxes
	Assessment and Collection of taxes
	Interests, illegalities and penalties
	Statutory period
	Judicial Review

According to the Argentine income tax law, residents are subject to income tax for their world wide income. Non resident are subject to tax only on income from Argentine source.

The principal forms of doing business in Argentina are basically those which exist in other countries; namely, sole proprietorship, various forms of partnership, Limited Liability Company, corporation, and branch of foreign company.

Resident corporations are those companies, partnerships, foundations, trusts, investment funds, registered in Argentina. Other companies, enterprises and one owner enterprises situated in Argentina are also considered resident.

Argentine corporations must submit annual returns together with their annual financial statements. Each return must show the adjustments required to arrive at taxable income or loss and the computation of the tax due. Returns must be submitted to the Administración Federal de Ingresos Públicos (Federal Administration of Public Revenue) within five months after the end of the fiscal year.

In order for an expense to be deductible it must be duly documented. However, if evidence is available to substantiate the disbursement as a necessary business expense, the deduction will be allowed and no withholding will be required.

The following items, among others, shall be deductible:

	Expenses and other expenditures inherent to the business activities.
	Penalties and allowances for bad debts in justifiable amounts pursuant to the industry's customs and conventions. The DIRECCIÓN GENERAL IMPOSITIVA (Internal Revenue Department) may establish the rules regarding the procedures to pay such penalties.
	Organization expenses. The DIRECCIÓN GENERAL IMPOSITIVA shall accept that expenses incurred in the creation of all enterprises may be amortized over not more than FIVE (5) years or, at the taxpayer option, be entirely written off in the first year.
	Commissions and expenses incurred abroad, as far as they are fair and reasonable.
	Expenses or revenues incurred in for staff’s medical care, educational and cultural aid, subsidies to sport clubs and, in general, any expense related to the assistance of employees or workers. Bonus, Christmas Bonus, etc. paid to the staff within the terms in which, pursuant to the regulations, the affidavit corresponding to that year must be submitted shall also be deductible.
	Actually made and credited representation expenses, up to an amount equivalent to ONE POINT FIFTY (1.5%) of the employees wages total amount paid during the fiscal year.
	Fees paid to directors, statutory auditors or surveillance council members and the ones agreed upon for the managing partners pursuant to the limits set forth by law.

Interest is deductible notwithstanding the nature of the obligation or the financing term. However, there is a limitation for deduction of interest from business loans, under which sixty per cent (60%) of the interests (except for the interests from loans granted by individuals and interests paid to financial institutions situated in countries not subject to supervision standards of Basle Committee on Banking Supervision) are not deductible if it exceeds one of the following limits: total liabilities must not exceed 250% of total equity, or total interests must not exceed 50% of taxable net income computed before the deduction of interests.

Charitable contributions made to the following entities: National, provincial, and municipal treasuries; tax exempt entities; religious institutions; approved mutual-aid societies; charitable organizations; trade union associations; physical training institutions; educational, scientific, literary, and artistic institutions. As from 1992 the allowable deduction is limited to 5% of the net taxable profits. The excess cannot be carried forward to future fiscal years.


Section 82 through 84 and 87 - 20628 Act (t.o. 1997)

	Personal expenses and expenses regarding the maintenance of the taxpayer and his family, unless otherwise provided in sections 22 and 23.
	The interests of the capital invested by the owner or partner of the companies included in section 49, (b), as well as the amounts withdrawn on account of incomes or wages and any other concept that implies a withdrawal on account of profits
	Taxpayer's spouse or relative's salaries or wages
	This law's tax and any other tax on vacant lands
	Salaries or wages paid to board members, councils and any other organization operating abroad, and fees and other paid wages for technical-financial counseling or counseling of any kind requested abroad, and concerning amounts that exceed the limits set forth by the regulations on this matter
	Amortization of goodwill, brands and similar assets
	Gifs other than the ones mentioned in section 81, (c), food, or any other kind of generosity act in money or kind
	Net losses from illicit operations
	Compensations from the exploitation of brands and patents belonging to foreign people, concerning amounts that exceed the limits set forth in the regulations on that matter

Section 88 - 20628 Act (t.o. 1997)

Inventories must be valued as follows:

	Goods for resale, raw materials: cost of the last purchase within the latest 2 months before the end of the fiscal year.
	Manufactured products: price of the last sale made within the two latest months before the end of the fiscal year, less selling expenses and the percentage of profit included in the price.
	Livestock: market value or estimated cost revalued annually
	When the personal property is considered merchandise its valuation is connected to the sale price.

The cost of purchased merchandise includes all expenses incurred in up to the time the goods are ready for sale. Interest on one `s own capital is not included in the cost of production. The taxpayer may write down the value of merchandise that is obsolete, damaged, or diminished in value for any reason, but the Administración Federal de Ingresos Públicos may question the values used in fixing the inventory amount. If the taxpayer is able to prove that the value of merchandise determined in accordance with the methods described above exceeds market value at the year-end, the latter value may be taken optionally.
Section 52 through 57 - 20.628 Act (t.o. 1997)

Ordinary Losses

In order to establish the net income, net results obtained during the fiscal year shall be compensated, within each category and among the different categories.

When there is a loss during a certain year, it can be deduced from the taxable income gained during the next two years. FIVE (5) years after the year when the loss occurred, no deduction can be made from the remaining of the loss in successive years.

Losses coming from activities which results shall not be considered from Argentine source may only be compensated with same kind of income.

Section 19 - 20.628 Act (T.O. 1997)

	Income from national, provincial or local Governments, and from offices thereof, except for the entities and organizations comprised in section 1 of the 22.016 Act.
	Incomes from tax exempt entities pursuant to national laws, as long as the exemption agreed upon includes the tax herein referred to and if the income derives directly from the main activity that caused such entities’ exemption.
	Earned income received by diplomats, consular agents and other foreign consular representatives in the Argentine Republic while performing their duties. Income derived from buildings owned by foreign governments and used as representatives office or residence and interests derived from deposit of same, should the interchange of rights be mutual.

Income derived from partnerships, foundations and social assistance civil entities, public health, charity, educational, scientific, literary, artistic, unions and physical or intellectual culture entities, as long as such income and the assets of the company are allocated to achieve the purposes of their creation, and in no case are directly or indirectly distributed among the partners. Those entities that obtain their income, totally or partially, from public shows, gambling, horse races and similar activities are excluded from this exemption.

	Interests derived from the following deposits made in institutions subject to the legal regime of financial entities:
	Incomes from tax exempt entities pursuant to national laws, as long as the exemption agreed upon includes the tax herein referred to and if the income derives directly from the main activity that caused such entities’ exemption.
	Earned income received by diplomats, consular agents and other foreign consular representatives in the Argentine Republic while performing their duties. Income derived from buildings owned by foreign governments and used as representatives office or residence and interests derived from deposit of same, should the interchange of rights be mutual.
	Saving account Special saving accounts Time deposits
	Interests registered in administrative or judicial Courts in relation to work credits.
	Income from securities, shares, bonds, bills, and other commercial papers issued or to be issued in the future by official entities pursuant to a general or special law or when the EXECUTIVE POWER so determines.
	Amounts received by exporters of goods or services as reimbursements determined by the EXECUTIVE POWER in relation to taxes paid in the domestic market, that directly or indirectly affect certain products and/or their raw materials and/or services.

The aforementioned exemption shall include foreign institutions through reciprocity.

	The share paid in surplus and the amounts earned by limited liability companies, limited partnerships and joint stock companies in relation to the capital of a general partner, due to the subscription and/or payment of shares whenever the amounts are higher than their face value.
	Income from international non-profit legal entities, with main administrative office in the Argentine Republic.

Income from the abovementioned non-profit institutions that have been declared of national interest shall be included in this subsection even if they do not provide evidence of incorporation granted in the country or evidence of the existence of their main administrative office in the Argentine Republic.

	Interests from promotion loans granted by international organizations or official foreign institutions, with the limitations set forth in the regulation.
	Interests from loans granted by foreign entities to national, provincial or local Governments or to the Autonomous City of Buenos Aires, as well as those granted by the Central Bank of the Argentine Republic.
	Income from purchase operations, change, exchange or disposal of stock, securities, bonds and other negotiable instruments obtained by natural persons residing in the country and decedents’ estate located therein, as long as they are not included in the provisions set forth in section 49 (c), excluding those derived from the aforementioned transactions, that have as their main object unlisted securities.

For the purposes of the exemption stated in the preceding paragraph, income shall be considered obtained by natural persons residing in the country when the ownership of the shares belongs to partnerships, companies, permanent companies, assets or commercial activities, domiciled or otherwise settled abroad, that due to their legal nature or bylaws have as their ordinary course of business investments outside the jurisdiction of the country of incorporation and/or cannot perform therein certain transactions and/or investments expressly determined in the legal or statutory provisions that regulate them, being the provisions in section 78 of the 2284 Decree dated 31st of October 1999 and its amendments, ratified by 24307 Act not applicable.

The exemption herein referred to shall also be applied to investment companies, trustees and other entities subject to taxation and/or tax obligations, organized as a result of privatizations, pursuant to the provisions set forth in Chapter II of 23696 Act and pertinent regulations, as long as it concerns transactions involving shares from Employee Stock Ownership plans, implemented pursuant to Chapter III of the aforementioned law.

Income from garbage collection and, in general, any kind of activity related to environmental sanitation and conservation -including counseling- obtained by entities and organizations included in section 1, 22016 Act provided that they reinvest said income in environmental-related activities.
Section 20 - 20628 Act (T.O. 1997)

In the case of building, rebuilding and repairs of any nature for third parties, when the operations that generate the profit comprise more than one fiscal year, their gross income must be reported pursuant to any of the following methods, at the taxpayer's option:

Should the aforementioned profit assessment be difficult or not plausible, the gross profit derived from the construction may be estimated following a process similar to the one stated in subsection a).
 If a construction project covers less than 1 (one) year, but the construction period overlaps two taxable years, the income may be reported on a completed-project basis.

If appropriate, the DIRECCIÓN GENERAL IMPOSITIVA (Internal Revenue Department) may authorize the aforementioned treatment for those works that take more than ONE (1) year to be finished, when such delay is caused by special circumstances (strikes, lack of material, etc.).

Once the method is chosen, it must be applied to all works, etc. performed by the taxpayer and it may not be changed without prior written consent by the DIRECCIÓN GENERAL IMPOSITIVA, which shall determine as from which fiscal period the method may be changed.

Section 74 - 20628 Act (T.O. 1997)

When net profits of any type are paid to organizations, companies or any other foreign beneficiary, unless otherwise set forth by law, the payer must withhold thirty five percent (35%) of such profits and pay said percentage to the Administración Federal de Ingresos Públicos in one single payment.

Foreign beneficiary shall mean any person or entity which receives its income abroad, directly or through attorney-in-fact, agents, representatives or any other person in the country, and the person who although collecting the income in the country, does not prove permanent residence in it. In case of impossibility to withhold the aforementioned percentage, the income shall be in charge of the paying entity, without undermining its rights to call for the reimbursement from the beneficiary

Section 91 through 93 - 20628 Act (T.O. 1997)

For tax purposes, transactions between affiliated companies are considered as transactions between third parties, as long as the terms and conditions of the contracts are in agreement with the arm’s length principle. A loan or royalty agreement that does not meet the provisions of the pertinent laws will not be allowed to influence the assessment of taxable profits. The Central Bank must be informed of all loans, and approval of the proposed transaction by the Bank is required. Royalty agreements, and in general every technology transfer agreement, are subject to the following provisions:

 They must be registered at the Instituto Nacional de la Propiedad Intelectual (National Institute of Intellectual Property).
 
 Royalties for the use of brand names are not deductible against taxable income.
 
 Royalty payments must be estimated and reported to the Instituto Nacional de Propiedad Intelectual..

 When the terms and conditions of the transactions are not in accordance with arm’s length principle, they must be adjusted according to the transfer pricing rules.

Corporate change

When companies, goodwill and organizations in general and/or any kind of company are reorganized, the results that could arise as a consequence of the reorganization shall not be taxable pursuant to this law, as long as the surviving entity or entities continue with the activity of the company or companies restructured or any other related activity during a period of at least TWO (2) years from the date of reorganization thereof.

In such cases, tax rights and obligations from the reorganized subjects shall be transferred to the surviving entity or entities.
The reorganization must be reported to the DIRECCIÓN GENERAL IMPOSITIVA pursuant to its terms and conditions.
In cases where the kind of reorganization does not allow the total transfer of the reorganized company or companies, except in cases of spin-off, the transfer of tax rights and obligations shall be subject to prior consent of the DIRECCIÓN GENERAL IMPOSITIVA.

Section 77 and 78 - 20628 Act (T.O. 1997)



Income categories

Classes of incomes are grouped by law into four distinct categories: income from land, income from capital, business income, and income from personal services. The tax return reflects the net income for each category and, after the deduction of the allowed items, the taxable income or loss is assessed. All the information provided by taxpayers in their tax returns is subject to examination by the Administración Federal de Ingresos Públicos.


Income from land

It is first category income and must be declared by the pertinent real estate owner:

Income obtained there from by the lessee is also considered within the first category.

Section 41 through 44 - 20628 Act (T.O. 1997)



Income from Capital

Income from the second category:

Section 46 through 48 - 20628 Act (T.O. 1997)



Corporate Income:

a)	Income mentioned in section 69, detailed as follows:
	The limited partners’ share of corporations and joint stock companies registered in the country. Limited liability companies, limited partnerships and the active partners share of joint stock companies. All of the companies must be registered in the country. Civil entities and foundations registered in the country, unless other tax treatment is hereby provided. Mixed investment companies in relation to taxable profits. Entities and organizations referred to in section 1 of the 22016 Act, not included in the aforementioned paragraphs, as long as no other tax treatment applies pursuant to section 6 thereof. Trusts registered in Argentina pursuant to the provisions set forth in the 24441 Act, except for those where the trustor is the beneficiary. The exception herein shall not be applicable in the cases of financial trusts or when the trustor-beneficiary is a subject comprised in title V. Investment funds registered in the country not comprised in paragraph 1 section 1 of the 24083 Act and its amendments. The abovementioned individuals are comprised within this subsection as from the date of creation or signing of the pertinent contract, as applicable. Commercial, industrial, farming, mining companies or any other business registered as a permanent company, owned by associations, partnerships or companies of any nature registered abroad or by natural persons residing abroad..
	Partnerships registered in the country are not herein included, notwithstanding the application of the provisions in section 14 and its consecutive and concurrent sections.
b)	Any income derived from any other kind of partnerships registered in the country or from one owner enterprises located in same.
c)	Income derived from the activity of the broker, auctioneer, trustee and any other trade auxiliaries not expressly included within the forth category.
d)	Income derived from the subdivision of land in plots for urbanization purposes; income from the building and sale of real property pursuant to 13512 Act.
e)	Income derived from trusts where the trustor is the beneficiary, except in the cases of financial trusts or when the trustor-beneficiary is a subject comprised in title V.
f)	Any other profits not included in other categories.

Section 49 and 69 - 20628 Act (T.O. 1997)



Personal Service:

This category includes salaries from public or private employment, professional fees, pension income and salaries paid to partner/manager of partnerships. In the case of dependent personal services, the tax is withheld by the employer, who must annually submit an informative tax return concerning employees’ taxable income, amounts withheld, tax-free income and income taxes withheld by other employers.



Personal allowances:

Resident individuals may deduct from net income the following items:

APPENDIX I TO GENERAL RESOLUTION No. 2299
AMOUNT FROM ACCUMULATED DEDUCTIONS
CORRESPONDING TO EACH MONTH

ITEM	AMOUNT $
A) Untaxed income [(Sect. 23, (a)]	7.500.-
B) Family deduction [(Sect. 23, (b)] Maximum of net income from family dependents during the fiscal year indicated to allow its deduction: (O: $ 6.250.- N: $ 6.875.-D: $ 7.500.-) Spouse  Child Other contributions	8.000.- 4.000.- 3.000.-
C) Special deduction [Sect. 23, (c); Sect. 79, (e)].	7.500.-
D) Special deduction [Sect. 23, (c); Sect. 79, (a), (b) and (c)].	36.000.-

APPENDIX III TO GENERAL RESOLUTION No. 2299
SCALE FROM SECTION 90 OF INCOME TAX LAW, 1997 TEXT AND ITS AMENDMENTS

Section 17 - 23966 Act (T.O. 1997)

Assets situated within the country include: real property, mortgages on real property located in Argentina, ships, aircrafts, automobiles, registered personal property, money or cash deposits, bonds, shares and other securities issued by public or private institutions, loans, rights to use any patent, trade marks, industrial property, copyright of literary, scientific or other artistic work, etc.

Section 19 - 23966 Act (T.O. 1997)

On the other hand, assets situated abroad include: real property, mortgages on real property situated abroad, ships or aircrafts and automobiles registered abroad, shares and securities issued by foreign entities, cash deposits in foreign bank institutions, debentures issued by foreign entities, loans whose debtors are domiciled abroad, etc.

Section 20 - 23966 Act (T.O. 1997)

The following items are exempt from taxes:

	Assets owned by members of foreign diplomatic and consular missions, their administrative and technical personnel and related persons in accordance with the limitations determined by applicable international agreements. Otherwise, the exemption will take place, with the same scope and limitations, on condition of reciprocity.
	Intangible property (goodwill, trade marks, patents, franchise rights and similar property).
	Property protected by franchises established in the 19640 Act.
	Rural real property referred to in section 2 (e) of the Presumptive Minimum Income Tax Law.
	Securities, debentures and other negotiable instruments issued by the national, provincial or local governments, and by the Autonomous City of Buenos Aires and the reprogrammed bank deposit certificates (CEDROS).
	Term deposits, saving account deposits, special saving account deposits or any other kind of capital raising in Argentine and foreign currency made by the institutions comprised under the regime of the 21526 Act pursuant to the provisions set forth by the CENTRAL BANK OF THE ARGENTINE REPUBLIC,

Section 21 - 23966 Act (T.O. 1997)

The Personal Assets Tax Law establishes standards to value the different assets situated within and outside the country, to enable the payment of taxes.

Section 22 and 24 - 23966 Act (T.O. 1997)

Individuals whose assets, valued pursuant to the provisions of the Law, amount to THREE HUNDRED AND FIVE THOUSAND PESOS ($ 305.000) or less are exempt from this tax.

Section 24 - 23966 Act (T.O. 1997)

Section 25 - 23966 Act (T.O. 1997)

Every person domiciled in Argentina, whether individual, corporation or any other type of organization, who own, manage, use, custody, etc., any property subject to taxation owned by individuals domiciled abroad, must pay a final tax of 1.25% of the value of the assets.

Section 26 - 23966 Act (T.O. 1997)

Section 1 - 25063 Act.

For the purposes of this section, “taxable person” means:

	Companies domiciled in the country. These taxable individuals shall be considered as such as from the date of the incorporation or the entering of the pertinent contract;
	One owner companies or activities pertaining to persons domiciled in the country. All one owner companies or activities which businesses comprise the extraction, production or trading of assets for commercial purposes are hereby included, as well as those that render services with the same aim, whether these services are technical, scientific or professional;
	Entities and organizations referred to in section 1, 22016 Act not comprised in the aforementioned subsections;
	Individuals and estates owning rural real property, in relation thereto;
	Trusts registered in the country pursuant to the provisions set forth in the 24441 Act, except for the financial trusts mentioned in sections 19 and 20 thereof;
	Investment funds registered in the country, except for those referred to in paragraph 1 section 1 of the 24083 Act and its amendments.
	Permanent establishments domiciled or, should it be the case, located in the country for the development of commercial, industrial, farming, livestock, forestry, mining or any other activity for commercial purposes, related to the production of goods or rendering of services, owned by natural or artificial persons domiciled abroad, or net worth for special purposes, one owner exploitations or companies, or estates located abroad.

The taxable base includes taxed goods from country assets, which shall be valued pursuant to the legal standards.

Sections 4 through 7 and 10, 25063 Act.

 Entities regulated by the Law of Financial Entities and insurance companies subject to the control of the National Supervising Authority, which reports to the Banks and Insurances Bureau from the Economic Policy Department of the Ministry of Economy, shall consider as their tax base twenty percent (20%) of the value of their taxable assets pursuant to the aforementioned sections. Likewise, Argentine livestock, fruits and products consignees will be taxed on forty percent (40%) of their assets pursuant to the provisions herein.
In the case of the abovementioned livestock, fruits and products consignees the aforementioned percentage shall only be applicable on the assets subject-matter of the activity of the consignment.
Section 11 - 25063 Act

The following are considered assets permanently located abroad:

	Real estate property located outside Argentina;
	Interest in land on assets located abroad;
	Ships and aircrafts registered abroad;
	Automobiles licensed or registered abroad;
	Personal property and livestock located outside Argentina; Regarding personal property and livestock transferred from the country, they shall be considered as situated permanently abroad when a period of at least six consecutive (6) months has elapsed before the date of the end of the fiscal year.
	Securities issued by foreign entities and the partnership’s interest, including one owner companies, and other securities representing the capital stock of companies registered or located abroad;
	Foreign bank deposits. When such deposits are originated in remittances made from the country, the minimum balance from the corresponding accounts shall be considered as being permanently settled abroad during the previous six (6) months before the end of the fiscal year. For such purposes, minimum balance shall be the sum of credit balances from all the abovementioned accounts, on the date when such sum has shown a smaller amount;
	Debentures issued by entities or companies domiciled abroad;
	Loans where the debtor is domiciled abroad, except for those guaranteed by rights on assets located in Argentina. When the loans correspond to price balances for the valuable consideration for assets transfer located in the country at the time of sale or if they arise as a consequence of activities developed in the country, they shall be considered as being permanently settled abroad after a period of more than six (6) months as from the date when they became due to the end of the fiscal year.

In all cases, local companies with foreign capital shall consider as assets debit balances from the account of the parent company, the owner, the branch, the bankruptcy, and the natural or artificial person that directly or indirectly controls it.

For the purposes of the aforementioned paragraph, local company with foreign capital shall be that which is considered as such pursuant to the provisions set forth in section 2 (3) of the Foreign Investment Law (t.o. 1993).
Likewise, debit balances of any origin from the owner or partner shall be considered as assets.
Sections 8 and 9 - 25063 Act

The following items are exempt from taxes:

	Assets owned by persons subject to the mining promotion regime, set forth by the 24196 Act, and involved in the development of the activities thereof;
	Assets exempted from income tax pursuant to national laws or approved international agreements in the terms and conditions thereof;
	Shares and capital interests in the capital of other taxed companies, including one owner companies or activities and the contributions and advanced payment against future re-investments by shareholders, when there exist duly documented and irrevocable investment commitments to subscribe shares, except for those that accrue interests or updates in similar conditions as between independent parties, taking into account market normal practices;
	Assets delivered by trustors, taxable individuals, to the trustees belonging to trusts similarly considered regarding the lien pursuant to the provisions of section 2 (f) and, in the case of financial trusts, share certificates and debt instruments, for the portion of the assets of the trust consisting of participation in other taxed entities that compose the assets of the trust fund;
	Partnership’s shares from investment funds included in section 2 (g) and partnership’s shares from other investment funds, for the portion of the assets of the fund consisting of participation in taxed entities that compose the assets of the fund;
	Taxed assets situated in the country assessed pursuant to the standards herein stated up to two hundred thousand pesos ($ 200,000). When there are assets taxed abroad, such sum shall be increased by applying the proportion of assets situated abroad over the total assets.

When the value of assets exceeds the abovementioned sum or the one estimated pursuant to the mentioned provisions, as the case may be, the taxed assets owned by the taxable individual shall be taxable in its entirety.

Total or partial exemptions regarding securities, bills, bonds and other negotiable instruments already in force at present or in the future pursuant to special laws, shall not impact on the taxpayers herein.

The tax will result from applying a one percent (1%) tax rate on the taxable base assessed pursuant to the provisions set forth in the law.
Income Tax assessed for the fiscal year already paid may be considered as a down payment against the Presumptive Minimum Income Tax, as long as the terms established to perform such calculation are fulfilled.

Section 13 - 25063 Act

Value added tax (VAT)

Scope:

The value added tax shall apply on:

	Sales of personal property within the country by a taxable person acting as such;
	The independent rendering of services within the country;
	The import of personal property.
	The rendering of services abroad, when the effective use of the services takes place in Argentina and the user is a registered VAT taxable person.

Section 1 - 20631 Act (T.O. 1997)

Any onerous transfer between natural or artificial persons, estates or any kind of entity implying the transfer of the ownership of personal property (sale, exchange, thing in lieu of payment, allocation due to dissolution of the corporation, social contributions, sales and judicial auctions, or any other act with the same aim, except expropriation), including self produced goods in the case of leasing and rendering of services exempt from tax, and the sale of those fixed to the ground at the time of transfer, as long as they are considered inventories.

Section 2 - 20631 Act (T.O. 1997)

For the purposes of this section, “taxable person” means any person who:

Section 4 - 20631 Act (T.O. 1997)

A chargeable event occurs: