Tax Information How to start being a Taxpayer before the AFIP (Federal Administration of Public Revenues)? In general terms, there are two kinds of taxpayers before the AFIP:
The Taxpayers registered in the General Regime are those individuals or legal persons subject to some of the following taxes: the Income Tax, the Value Added Tax (VAT), the Tax on Personal Assets, the Tax on Minimum Presumptive Income, and every other national tax which can be collected and controlled by this Federal Administration. Employers and/ or self -employed workers must comply with the General Regime. Some taxpayers registered in the General Regime, according to certain parameters established by Law, may choose the Monotributo. (See simulator) (Only available in Spanish).
The Monotributo - or Simplified Regime System – consist of unifying in one unique tax the income of a lump sum formed by a pension component (Social Security) and a tax component. It is a monthly payment. The income of the established amounts for each component is compulsory with the exceptions under the current regulation. The list of the Social Services that cooperate with the Regime can be checked in the Superintendence of Health Services web site. (Only available in Spanish). The categorization is self-determined. Every four months, the taxpayer may re-categorized only if the parameters exceed or be inferior to the limits of the disclosed category. (See simulator) . (Only available in Spanish). Employers belonging to the Monotributo system must register their workers and enter their benefits and contributions under the General Regime. Taxpayers to which the Tax on Personal Assets apply (See simulator) (Only available in Spanish) or those registered taxpayers subject to tax, must file the annual tax return and if appropriate, pay the amount established under the General Regime. For further information about the Monotributo. [ Back to top ] Foreigner Registration before the AFIP Tax Identification Number – CUIT The Tax Identification Number –CUIT- is a numerical code with which AFIP unequivocally identifies taxpayers. The following issues must be considered in order to obtain a CUIT: The application form for registration will be made at AFIP’s agency (Search available only in Spanish) which corresponds to your fiscal domicile. If taxpayers or other responsible persons are domiciled abroad and do not have any representatives within the country or the domicile of those representatives cannot be established, it will be considered as fiscal domicile the place within the Argentine Republic in which such representatives have their main business or working or their main source of resources or subsidiarily, the place of their last residence. According to the party and the regime registration, the following forms of tax returns must be filed: General Regime To obtain the CUIT: Individuals and undivided estates: F 460/F (Only available in Spanish) Legal Persons: The application form for registration will be made by sending electronically the tax return created with the Legal Persons Registration Module computer application programme. The computer application programme requests information related to:
To obtain the computer application programme click Here (Only available in Spanish). To obtain the Instructive of the computer application programme click Here (Only available in Spanish). Once the data requested by the computer application programme is entered, the file for the electronic transfer of data must be created and the form N° 420/J must be printed. The file created by the computer application programme must be transferred to AFIP by the solicitor:
2 (two) copies of the acknowledgement of receipt, containing the verification and transaction number must be printed. For regulations see General Resolution N° 2337 Year 2007 (Only available in Spanish). Taxes Registration The taxes registration must be carried out at www.afip.gov.ar by entering the Fiscal Code into the Servicio Padrón Único de Contribuyentes (Unique Taxpayers’ Roll Service) – Alta de Impuestos y/o Regímenes (Taxes and/or Regimes Registration). Simplified Regime or Monotributo To obtain the CUIT: Individuals and undivided estates: F. 183/F (Only available in Spanish) Legal Persons: Must file the form F. 183/J. (Only available in Spanish) The Simplified Regime or Monotributo registration will become effective by means of the electronic transfer of data in the form F184/F by entering into “Fiscal Code” – Monotributo of the web site of this Federal Administration (http//www.afip.gov.ar). Once the data requested in the form F.184/F is recorded, the system will issue a certificate of filing – acknowledgement of receipt- and a card for the payment of form F.152. Once the data of form F.184/F is confirmed at the web site and the form F.152 is printed, the procedure for the Simplified Regime or Monotributo is finished. If you want to view the steps to register in the Simplified Regime click here (Document available in Spanish). For regulations see General Resolution N° 2150 Year 2006 (Only available in Spanish). General Considerations If taxpayers or other responsible persons are domiciled abroad and do not have any representatives within the country or the domicile of those representatives cannot be established, it will be considered as fiscal domicile the place of the Republic in which such representatives have their main business or exploitation or their main source of resources or subsidiarily, the place of their last residence. The above mentioned forms must be accompanied by the form N° 561 of tax return (Only available in Spanish) in case they have branches or other establishments destined to the activity. The above mentioned forms must contain the signature certification of the holder, responsible or authorized person – through the intervention of a bank, police authority or notary public, except when they were signed before some official of a branch of this Body where the submission is made, in which case, said officials will act as certifying authorities. The following documentation must be attached to the forms: Individuals: photocopy of the ID (Documento Nacional de Identidad, Libreta Cívica or Libreta de Enrolamiento). Foreigners without ID (Documento Nacional de Identidad): photocopy of the ID (Cédula de Identidad) or the certificate or receipts proving the number of file issued by the National Office of Migration (Only available in Spanish) stating his/ her residence. The granting of the Tax Identification Number – CUIT – to foreigners is subject to the conditions established under the General Resolution N° 3.890 - General Tax Directorate (Only available in Spanish). This Body will grant a tax identification number – CUIT – which is valid up to 2 (two) years. The CUIT represents a numerical code with which AFIP (Federal Administration of Public Revenues) identifies each individual or legal person in order to fulfill tax and social security obligations. During such period, foreigners must apply for the argentine ID and communicate the given number to that General Tax Directorate. Said communication will be made in the tax return form N° 581 (Only available in Spanish). The tax return must be filed within 10 days after the granting of the respective document, before the (AFIP’s agency) (Search available only in Spanish) where such persons are registered. Foreigners with temporary or transitory residence within the Argentine Republic will be subject – regarding the effectiveness of the temporary registration– to the admission term established by the authority of application Ministry of Interior (Only available in Spanish) - under the residence certificate issued by such authority. Tax deregistration The deregistration of the registration can be obtained through a fiscal Code via the Internet, entering at Padrón Único de Contribuyentes (Unique Taxpayers’ Roll). For more information click here (Only available in Spanish) [ Back to top ] Web Services – Fiscal Code - Fiscal Code is a password granted by AFIP to taxpayers with the aim of making transactions - such as file tax returns, make payments, chose the Monotributo system, request a tax or regime deregistration, etc.) in any computer with INTERNET access. It is necessary to fulfill certain formalities in order to guarantee the confidentiality of the information sent. .
Procedure to obtain the “Fiscal Code” for Individuals Individuals who have already started the procedure to obtain the CUIT (Tax Identification Number), CUIL (Labor Identification Number) or CDI (Identification Number) must have a “Fiscal Code” according to the necessary “Security Level”. The “Security Level” determines the AFIP’s services the individual may use (the higher the “Security Level”, the higher the quantity of services the individual may use in the Internet, and also, the higher the quantity of data required). Click here (Only available in Spanish) to view the list of services available only with Fiscal Code and the security level required for each case (application form, delegation). Click here (Only available in Spanish) to view the steps to request the “Fiscal Code” via the Internet. Documentation to obtain the “Fiscal Code” with security level 3 or 4: 1. – Native or naturalized argentine person and foreigners: original and photocopy of the ID (documento nacional de identidad, libreta cívica or libreta de enrolamiento). Foreigners must also submit the original and photocopy of his/ her origin country ID, passport or MERCOSUR ID (for neighboring countries). 2. Foreigners without national ID residing in the country (whether temporarily or transitorily): original and photocopy of the ID (Cédula de Identidad) or the certificate or receipts proving the number of file issued by the National Office of Migration (Only available in Spanish) stating his/ her residence. [ Fiscal Code Menu ][ Back to top ] Procedure to obtain the “Fiscal Code” for Legal Persons Legal persons may use and/ or interact with the computer services available by means of the “Fiscal Code” of his/ her legal representative. For said purpose, such legal representative must:
DOCUMENTS TO BE SUBMITTED In every case, the copies of the supporting documents submitted must be certificated by a notary public, bank, justice of the peace or police authority. A- (unique) Legal Representative of Associations and Companies of any kind (including de facto business association or corporation in the process of formation). In order to prove his/ her capacity as legal representative, individuals must submit the following elements for each legal person represented before AFIP’s agency (Search available only in Spanish): 1. ID of the Legal Representative (LE, LC or DNI). 2.Certified copy of the rules regulating the operation of the legal person - partnership agreement, statute, etc. 3. Documentation that proves his/ her capacity as legal representative of the relevant entity – minutes of a meeting, judicial sentence, etc. In case of registered business associations, the position appointment must be registered before the competent Commercial Registry. B- (Joint or Shared) Legal Representative of Associations and Companies of any kind (including de facto business association or corporation in the process of formation). 1.ID of the Legal Representative (LE, LC or DNI). 2. Certified copy of the rules regulating the operation of the legal person - partnership agreement, statute, etc. 3. Documentation that proves his/ her capacity as legal representative of the relevant entity – minutes of a meeting, judicial sentence, etc. In case of registered business associations, the position appointment must be registered before the competent Commercial Registry. G- Diplomatic Representations: 1.ID of the Legal Representative (LE, LC or DNI). 2. Copy of the certificate that proves his/ her diplomatic representation issued by the Ministry of External Relations, International Trade and Worship (Only available in Spanish). In order to apply for a Relation Administrator status, the Legal Representative may authorize a third party to submit the documentation in the AFIP’s agency. Said third party must be authorized for such purpose by means of the form N° 3283 (Only available in Spanish). Special Cases Plural Legal Representation: When the legal representation of the Legal Person is plural, one of the legal representatives must be appointed to use and/ or interact with the available services. For such purpose, a note conforming to the model attached as Annex IV of the General Resolution 2239 – Amended by the General Resolution 2288 (Only available in Spanish) must be submitted jointly with the signature certification of a notary public, bank, justice of peace or police authority, complying the provisions of the General Resolution N° 1.128 (Only available in Spanish). Individuals with legal or statutory representation of public legal persons or head Entities or private teaching institutes and institutes belonging to archbishoprics, bishoprics or congregations of the catholic church, or religious communities of other kinds of worship, or non-profit civil organizations may delegate, through an express administrative act, the Relation Administration function to an individual belonging to his/ her organization. The appointed person must have a Level 3 Fiscal Code and then submit the following documentation before the AFIP:
[ Fiscal Code Menu ][ Back to top ] Relation Administrator The Relation Administrator tool allows Taxpayers to appoint (and deregister) the users acting on his/ her behalf before the AFIP that will use the services requiring a Fiscal Code. It is necessary to explain the following concepts in order to understand the scope of this tool:
See Interrelationship Scheme between these parties for the Relation Administration (Only available in Spanish). [ Fiscal Code Menu][ Back to top ] Procedure to obtain the “Fiscal Code” to do business on behalf of a Individual (EXCEPTIONAL CASES) In exceptional cases, an Individual designated as “Proxy Relation Administrator” may act as proxy on behalf of::
Procedure: In order to obtain the Fiscal Code, the proxy must submit the following documentation in any AFIP’s agency or (Services Center) (Only available in Spanish): a) Proxy documentation: 1.- Native or naturalized argentine person and foreigners: original and photocopy of the ID (documento nacional de identidad, libreta cívica or libreta de enrolamiento). Foreigners must also submit the original and photocopy of his/ her origin country ID, passport or MERCOSUR ID (for neighboring countries). 2.- Foreigners with national ID: a) Original and photocopy of the national ID and his/ her origin country ID, passport or MERCOSUR ID (for neighboring countries). b) Form F. 206 (Only available in Spanish) stating the valid exceptional causes and indicating the documentation that must be attached for each case as follows:
c) Form Formulario N° 3283/F (Only available in Spanish) or in case of proxies of legal representatives of legal persons, the form Formulario N° 3283/J (Only available in Spanish) [ Fiscal Code Menu ][ Back to top ] I forgot my “password”. What should I do? The following options apply in case you forgot your password:
[ Menu SenhaFiscal ][ Back to top ] Procedures related to foreigners making transactions in the Argentine Republic Identification Number (C.D.I.) Why is it necessary to obtain the Identification Number (C.D.I.)? The Identification Number - CDI – represents a numerical code that AFIP – Federal Administration of Public Revenues – grants to those individuals or legal persons that do not have CUIT nor CUIL due to there is no tax or social security binding issues. The Identification Number -CDI - will be obtained in case of opening a current account or the requirements of entities must be fulfill and there exists no Tax Identification Number (CUIT), nor Labor Identification Number (CUIL) What forms must be submitted? To obtain the CDI the form 663 Nuevo modelo (Form. 663- new model) (Only available in Spanish) must be submitted in duplicate. Such form may be loaded from the AFIP’s web page (www.afip.gov.ar) or at any AFIP’s agency (Only available in Spanish). Where may I start the procedure to obtain the CDI? You may start the procedure at the AFIP’s agency (Only available in Spanish) which jurisdiction corresponds to the domicile of the responsible person. . What documentation must residents abroad submit? Foreigners residing outside the Argentine Republic must submit original and photocopy of the passport. Residents in neighboring countries of the Argentine Republic may submit his/ her origin country ID. Furthermore, parties residing and doing business abroad must submit the passport or otherwise, his/ her origin country ID. The documentation will be submitted by the legal representative, proxy or mandatory who must have a CUIT, CUIL or CDI and domicile within the country. What documentation must partnerships submit? Partnerships established abroad must submit:
What documentation must be submitted for Diplomatic Representations? It must be submitted the original and photocopy of the certificate issued by the Ministry of External Relations, International Trade and Worship) (Only available in Spanish) proving his/ her diplomatic representation. Who may start such procedure? The procedure to obtain the CDI may be started by the interested party or by a third party in case of foreigners residing abroad the Argentine Republic. The interested party must sign the form before the official in charge at the agency where the registration will take place. If a third party starts the procedure, the signature of the interested party must be certified by a police authority, bank or notary public. As required for non-residents who has not entered the national territory, the proxy or legal representative that starts the procedure must attach the relevant documentation that proves such capacity. In which cases banks must obtain a CDI for foreign persons? Before the opening of an account whose owner does not have any code and is an individual residing and doing business abroad, banks established within the Argentine Republic must require the Identification Number (CDI) before the Federal Administration of Public Revenues as representatives of such party. What is the Labor Identification Number – CUIL? The Labor Identification Number – CUIL – is a numerical code similar to the CUIT that identifies persons employed or that may be employed by a third person. It is worth noting that such code is granted and issued by another entity called National Administration of Social Security (Only available in Spanish). To check your CUIL certificate Click Here (Search available only in Spanish). Certificate of Fiscal Residence Previous Considerations Under the Decreto 67/03 (Decree 67/03), the competent area for the Certificate of Fiscal Residence issue is the Subsecretaría de Ingresos Públicos (Undersecretary of Public Revenues) which depends on the Ministry of Economy and Production through the Dirección Nacional de Impuestos (National Tax Bureau). The Federal Administration of Public Revenues, as authority of application, is responsible for the issue of such certificate. It is worth noting that the intervention of each tax agency will be limited to provide information only to the above mention unit of application, whether the certificate has been requested in the relevant agency or in the National Tax Bureau. Application form submission The interested party must start the procedure to obtain the Certificate of Fiscal Residence indistinctively at the Dirección Nacional de Impuestos – Dirección de Relaciones Tributarias Internacionales (National Tax Bureau –International Tax Relations Bureau), or at the Federal Administration of Public Revenues. Taxpayers registered in the Argentine Republic must appear before the AFIP’s agency (Only available in Spanish) in which he/ she is registered. Provement of the resident status Individuals or legal persons residing in the Argentine Republic, under the article 119 of the Income Tax Law (Only available in Spanish) (consolidated text 1997 as amended), may prove his/ her condition as resident within the country, by submitting the following documentation for each case:
Documents to be submitted The interested party must fill in the form attached as “Solicitud Certificado de Residencia Fiscal”(Certificate of Fiscal Residence Application Form) jointly with the following documentation:
If the interested party submits a Form F.206 (Only available in Spanish) requiring the issue of the certificate, he/ she must additionally fill in the form “Solicitud Certificado de Residencia Fiscal” (Fiscal Residence Certificate Application Form). Such certificate will be issued by the Dirección de Relaciones Tributarias Internacionales (International Tax Relations Bureau). In case such interested party is not a taxpayer or responsible for tax or social security obligations an Identification Number (CDI) will be granted. Observations regarding the submission The CUIT/CUIL disclosed by the interested party must be registered in the Unique Taxpayers and Responsible Persons’ Roll. The information contained in such Roll must coincide with the information included in the form submitted, paying special attention to the domicile disclosed. In case data are not coincident with those details included in the Form, the requesting person will have to alter the information by filing the Form F. 460/F (Form. 460/F (Only available in Spanish) or Form F. 460/F (Form.460/J (Only available in Spanish) or where appropriate the Form F. 183/F (Form. 183/F) (Only available in Spanish) or o F. 183/J (Form. 183/J) (Only available in Spanish) in the case of Monotributistas ( simplified regime), in accordance with the R.G. 10/97 ( General Resolution 10/97) (Only available in Spanish) its amendments and/or complementary provisions. In the case of a CUIL that it is not coincident with any of the information registered of the requesting person, he/she will have to do the corresponding update in the UDAI office (Only available in Spanish) closest to his/ her domicile with his/ her ID (D.N.I./L.C./L.E. ). If requesting person’ domicile is not coincident with the information registered he/she also will have to do the corresponding update before the above mentioned Body, bearing his/ her ID in which is included the change of domicile. In the case of individuals who are not registered in this Body, record is also sent to inform the above mentioned situation. Certificate. The mentioned National Tax Bureau will issue the Certificate of Fiscal Residence and send it to the requesting person’ domicile stated in the report sent opportunely by the Administrative Judge. Likewise, where appropriate, it will communicate it to the tax branch that intervened in the processing of the refusal of the certificate. General considerations In order to request the Certificate of Fiscal Residence, an Agreement celebrated between the Republic of Argentina and another contracting state must exist for avoiding double taxation and preventing tax evasion with respect to income tax and tax on personal assets. In those cases in which foreign persons do not want to obtain the permanent residence in the Republic of Argentina, since their stay in said country are not due to reasons that could imply an intention of habitual permanency and need the extension of a “non-resident” certificate in order not to pay taxes in the Republic of Argentina, the above mentioned request will have to be sent to the International Tax Relations Directorate. [ Back to top ] Information for Foreign Investors – Rules. CONSOLIDATED TEXT ACT N° 21.382, approved as Annex I of Decree N° 1853/1993. FOREIGN INVESTMENT ACT N° 21382 ARTICLE 1 - Foreign investors who invest capital in the country using any form established in Article 3 of this Law, in order to promote economic activities, or expanding or enhancing of existing ones, will have the same rights and obligations that the Constitution and Laws accord to domestic investors, subject to the terms of this law and the terms contemplated in special or promotional regimes. ARTICLE 2 - For purposes of this law the term: 1. Foreign capital investment means a) All capital contributions belonging to foreign investors and used in economic activities in Argentina; and b) Acquisition of all or part of an existing domestic company's capital by foreign investors.; 2. Foreign investor means: all natural or legal person domiciled outside the national territory; holder of a foreign capital investment; and domestic companies of foreign capital defined in the next paragraph of this article that invest in some others domestic companies. (Infoleg Note: for purposes of dispositions set forth in article 2° subparagraph 2), article 3 ° of the Decree 1853/93 - Official Gazette 8/9/1993 states that " the concept of foreign investor includes Argentine natural or legal persons whose domicile is established out of the national territory."); 3. Domestic company of foreign capital means: All companies domiciled in Argentina in which natural or legal persons domiciled outside the republic directly or indirectly own more than 49 percent of the capital, or directly or indirectly have the number of votes necessary to prevail in shareholders’ meetings or partner's reunions; 4. Domestic company of domestic capital means: All companies domiciled within Argentina, in which natural or legal persons also domiciled within Argentina directly or indirectly own not less than 51 percent of the capital and directly or indirectly have the number of votes necessary to prevail in shareholders’ meetings or partner's reunions; 5. Domicile: As defined in Articles 89 and 90 of the Civil Code. ARTICLE 3 - Foreign investment can be made in: (1) freely convertible foreign currency, (2) capital goods, their parts, and accessories, (3) earnings or capital in domestic currency belonging to foreign investors, whenever this earnings are lawfully subject to be transferable abroad; (4) capitalization of foreign credits in freely convertible foreign currency; (5) intangible goods, in accordance with specific legislation; and (6) Any other types of contributions contemplated in special or promotional regimes . ARTICLE 4 - Regulations pursuant to this law will be issued by an administrative body within the Ministry of Economy and Production* with a rank not inferior to Undersecretariat which, will act as the Enforcement Authority establishing its structure, functions, and powers. * The former Ministry of Economy and Public Works and Services. ARTICLE 5 - The foreign investors may remit abroad any liquid earnings and realized profits as a result of their investments and may also repatriate their capital. ARTICLE 6 - The foreign investors are entitled to use any of the corporate legal status recognized by Argentine laws. ARTICLE 7 - Domestic companies of foreign capital may access the domestic credit market with the same rights and conditions as domestic companies of domestic capital. ARTICLE 8 - Temporary contributions of foreign capital made pursuant to contracts for the provision of goods, works, services, or other activities are not subject to this law. They are governed by the terms of the respective contracts in accordance with applicable laws, notwithstanding which the owners of such contributions may choose to have their investment governed by this law. ARTICLE 9 - Legal acts entered into between a domestic company of foreign capital and the company (or a subsidiary thereof) that directly or indirectly controls it are considered, for all purposes, to have been created between independent parties when the terms and conditions conform to usual market practices among independent entities. ARTICLE 10 - Prior laws relating to foreign investment and general rules issued pursuant to them are repealed (Laws 20.557, 20.575 and 21.037; Decrees 413/74 and 414/74). This law will apply to all proceeding pending under the named repealed laws. [ Back to top ] Main Domestic Taxes– Outstanding Issues Income Tax How should resident persons in Argentina pay taxes? Resident persons in Argentina, pay taxes on the whole of their profits obtained in the country or abroad. They are able to calculate as a partial payment of the income tax the sums really paid by analogous taxes, on their activities abroad, up to the limit of the increase of the fiscal obligation originated by the incorporation of the income obtained abroad. How should a foreign beneficiary pay taxes in Argentina? Non resident persons pay taxes exclusively on their argentine source incomes. In this regard, a foreign beneficiary will be the person who obtain his/her incomes directly or through proxies, agents, representatives or any other mandatory in the country and the person who obtain his/her incomes in Argentina but he/she cannot prove permanent residence in said country. In the cases in which inability to withhold exists, said incomes will be at the expense of the payer entity, without prejudice of its rights of demanding the refund on behalf of the beneficiaries. When net incomes are paid of any category to societies, companies or any other foreign beneficiary the person who pays said incomes should withhold and pay before the Federal Administration of Public Revenues ( AFIP), in the form of a unique and definitive payment, 35 % of such incomes. For such purpose, dispositions set forth in the General Resolution 739/99 shall be fulfilled. (Only available in Spanish) What is understood by “argentine source income”? In principle, argentine source incomes are those that arise from goods situated, placed or used for an economic purpose in Argentina, from performance in Argentina, of any act or activity capable of producing an income or from events occurring within Argentine territory, without bearing in mind either nationality, domicile or residence of the owner or of the parties that intervene in the operations, or the place of celebration of the contracts. In the case of foreign beneficiaries, in what cases are the middlemen, administrators or mandataries obliged to withhold income tax? Middlemen, administrators or mandataries will have to withhold the income tax for the payments abroad that they made on behalf of the persons that order said payments. Likewise, they will have to apply and pay the withholdings for the payments made for their own transactions. They are exempt from withholding when the payers of the revenue to the foreign beneficiaries have carried out the withholding or they are not paying concepts that are subject to withholding. When the total or partial payment of the income tax to is at the expense of the person that pays the revenue, he/she shall credit sufficient funds for paying the respective tax, being the intermediary, administrative or mandatory entity obliged not to making the draft effective until it happens. In what cases are the middlemen, administrators or mandataries that receive incomes for the account of foreign beneficiaries obliged to withhold income tax? They will have to pay the amount of the corresponding withholding, when the payer of the revenue had omitted to do it. When a natural person is considered as a resident person in Argentina Tax legislation considers residents in Argentina the following people:
In what cases does the loss of permanent resident status take place? Natural persons who enjoy the Argentine resident status, will lose such status when they become permanent residents in a foreign State, pursuant to the migration regulations prevailing therein or when they remain uninterruptedly in a foreign country for twelve (12) months. When temporary stays take place in the country that do not exceed 90 working or non working days, during every period of 12 months, the continuous permanence abroad will not be interrupted. In the case of uninterrupted permanence as defined in the preceding paragraph, the individuals who remain outside the country for reasons that do not imply the intent of remaining in the foreign country habitually, will be entitled to prove such circumstance before the Federal Administration of Public Revenues.( AFIP). From which moment is the loss of resident status effective? The loss of the resident status shall be effective as of the first day of the month immediately subsequent to the one on which the permanent residence in a foreign State was acquired or the term that defines the loss of the Argentine resident status expires, as applicable. When it has to do with foreign beneficiaries. Which are the presumptions that regulation regarding net profit foresees? When a sum of money is paid to foreign beneficiaries for the following concepts, net profit will be presumed, without admitting evidence to the contrary: In the case of interest or remunerations paid for credits, loans or funds of any nature as long as they were get abroad:
Sale of real property in Argentina - Operations subject to income tax How should you proceed in case of transfer of real property belonging to persons resident abroad? When the profits of the operations belong to a foreign resident and they are subject to the income tax, withholding agents will have to withhold in the form of unique and definitive payment, the amount of tax stated in the "certificate of withholding" issued by this Tax Administration upon request of the representative of said person. How should you proceed to apply for a “Certificate of Withholding” in the case of persons resident abroad ? When the benefits of the operations belong to a person resident abroad, withholding agents (notaries, etc.) will have to withhold in the form of unique and definitive payment, the amount of tax stated in the "certificate of withholding" issued by this Tax Administration upon request of the representative of said person Likewise, the above mentioned representative will have to submit, with no less than 20 calendar days in advance to the date of the execution of the deed, F.206 (Only available in Spanish) together with the following documentation:
In case the above mentioned copies should not be authenticated, original copies of said documentation shall be submitted. Tax on Personal Assets Which is the treatment applicable to the goods situated in the country own by individuals domiciled abroad? Natural or legal persons domiciled in Argentina who have the condominium, possession, use, enjoyment, disposal, deposit, tenancy, custody, administration or guardianship of goods subjected to tax owned by individuals domiciled abroad will have to pay in the form of a unique and definitive payment for the respective goods on December 31 of every year, 0,75 % of the value of the value of the above mentioned goods. In the case of real estate located in Argentina which is unexploited or destined to lease, recreation or summer place, directly owned by corporations, companies, permanent establishments, goods destined to the business activity which are domiciled or, where appropriate, situated abroad, the assets will be presumed, without admitting evidence to the contrary, to belong to natural persons or undivided estates, or located in Argentina, where appropriate, in which cases the applicable aliquot will be of 1.5 %. Which requirement should substitute taxpayers fullfil in order to apply for their registration before this Body? In order to apply for registration as substitute taxpayer you will have to submit before this Body :* form F. 460/F (Only available in Spanish) together with the papers that prove the identity of the person according to each case (ID - documento nacional de identidad.-, by-laws, statement where the legal domicile appears, corporate filling before the Inspección General de Justicia ( Corporations’ Records Office), etc.
When the forms are presented by authorized persons, proxies or legal representatives, said person shall submit the documentation that proves the claimed status. Must a substitute taxpayer of tax on Personal Assets credit the non taxable threshold of $305,000? The above-mentioned substitute taxpayers shall not have to credit the non taxable threshold for the calculation of the tax, since the regulation does not consider said possibility. Substitute taxpayers must only pay the tax when the amount is greater than $ 255,75, which is, according to the moment of exchange rate, approximately equivalent to U$S 82 (eighty two American dollars) or € 60 (sixty Euros). Must a natural person who is a resident abroad and owns a real property in Argentina destined to lease, pay the tax on personal assets? In this case the taxpayer must pay the Tax on Minimum Presumptive Income since urban real estate which are destined to lease and are owned by natural persons who are resident abroad, are considered as permanent establishments. In which cases agents, representatives or other mandataries who receive profits on account of foreign beneficiaries must pay the withholding? They shall pay correspondent withholding when the payer of the income fail to withhold the tax. Tax on Minimum Presumptive Income When will a foreign person be subject to Tax on Minimum Presumptive Income? Pursuant to the set forth in Ley 25.063 (Only Available in Spanish), the following persons, among others, are subject to the Tax on Minimum Presumptive Income: the permanent establishments domiciled or, where appropriate, located in the Republic of Argentina, for or by virtue of the development of commercial, industrial, agricultural, cattle raising, forest, mining activities or any other kind of activity, with speculation or profit seeking, or with the purposes of production of goods or of rendering of services, which belong to natural or legal persons domiciled abroad, or to goods destined to the business activity, operating companies or sole proprietorships located abroad or to undivided estates domiciled abroad. What is understood by permanent establishment? For the purposes of the Tax on Minimum Presumptive Income, “permanent establishment is understood as, any stable business place where a natural or legal person, an undivided estate, goods destined to the business activity or an operating company or sole proprietorships develops, whole or partially, his/her activity as well as the urban real estate that are meant for rental. Among others, are included in this clause:
The use of facilities with purposes of storage, exhibition or delivery of goods by the person, goods destined to the business activity, operating company or sole proprietorship or undivided estate, to whom these belong and the maintenance of stock of the above mentioned goods with such purposes. The maintenance of a stable business place to acquire goods or to gather information for the person, goods destined to the business activity, operating company or sole proprietorship or undivided estate, as well as with purposes of advertising, supply of information, technical or scientific researches or similar activities, which have preparatory or auxiliary character for said person, goods destined to the business activity, operating company or sole proprietorship or undivided estate. In the case of permanent establishments located in the Republic of Argentina. Who must pay the Tax on Minimum Presumptive Income) Natural or legal persons domiciled in the Republic of Argentina, sole proprietorships located in the Republic of Argentina or the undivided estates located in that country that have the condominium, possession, use, enjoyment, disposal, deposit, tenancy, custody, administration or guardianship of real estate that constitute permanent establishments pursuant to the set forth in this clause, will have to act as substitute taxpayers of the tax on Minimum Presumptive Income, according to the procedure that in this regard the Federal Administration of Public Revenues ( AFIP) establishes. Must a substitute taxpayer to the tax on Minimum Presumptive Income consider the minimum threshold for purposes of tax assessment? There is no legal impediment for a substitute taxpayer of the tax in considering, for the tax assessment, the exempt minimum threshold of $200.000.-(of the legal tender in the Republic Argentina) which is, according to the moment of exchange rate, approximately equivalent to U$S 63.900 (sixty three thousand nine hundred American dollars) or € 47.200 (forty seven thousand two hundred Euros). Must a natural person who is a resident abroad and owns a real property in Argentina destined to lease, pay tax on Minimum Presumptive Income? In this case the taxpayer must pay the Tax on Minimum Presumptive Income since urban real estate which are destined to lease and are owned by natural persons who are resident abroad, are considered as permanent establishments. Natural or legal persons domiciled in the Republic of Argentina, sole proprietorships located in the Republic of Argentina or the undivided estates located in that country that have the condominium, possession, use, enjoyment, disposal, deposit, tenancy, custody, administration or guardianship of real estate that constitute permanent establishments, shall act as substitute taxpayers of the tax on Minimum Presumptive Income. Real Estate Transfer Tax. What does this tax levy? This tax levies the transfer of real estate made by natural persons and undivided estates, insofar as that income tax is not applied to said transfers. What is understood by transfer of real estates? For such purpose a transfer of real estates shall be understood as the transfer to the sale, barter, change, lieu of payment, contribution to companies and any act of disposal but the expropriation, by means of which the domain under onerous title should be transmitted, even when such transfers are made through a judicial order or due to bankruptcy proceedings regulated by a civil code. Transfers made by residents abroad will be only subject to tax, while it is duly demonstrated in the opinion of the Organization, that it is a case of real estate belonging to natural persons or undivided successions. Apply for the certificate of withholding - persons resident abroad How should taxpayers proceed in the case of transfer of real estate belonging to persons resident abroad ? Persons resident abroad or their representatives will have to apply for a "certificate of withholding" before the Federal Administration of Public Revenues (AFIP). Withholdings agents will have to withhold the amount that arises from the "certificate of withholding ", except that the price will be expressed in foreign currency and the taxable event takes place after the date of issue of the above mentioned certificate, in which case, the withholding agent will have to re-liquidate the tax converting the amount subject to withholding, to the seller exchange rate quoted by the Banco de la Nación Argentina (Only available in Spanish) for the currency in question, at current exchange rate as of the closing date of the immediate working day previous to the day of production of the fact that originates the obligation of the tax. When the operation is carried out by a not certain price and the market price is not known, the abovementioned responsible persons are obliged to apply for a "proof of assessment".. In the case of transfer of real estate belonging to residents abroad, what is the procedure for applying for a certificate of whithholding? The application of the " proof of withholding " will have to be carried out with at least 20 calendar days in advance to the date of the act that generates the obligation of withholding. The application will have to be made using the computer application program called Transfer of real estates – version 2.0 release 0. The information will be supplied through "Internet" by means of electronic transfer of information by entering with a fiscal code to the web site of the Federal Administration of Public Revenues. (http: // www.afip.gov.ar/. Once the file is transmitted in accordance with the above-mentioned procedure, the requesting person will enter to said "web site" - Servicio "Transferencia de Inmuebles", (Service "Transfer of Real estate"), option “Confirmar Solicitud Régimen General" (Confirm Application General Regime"-, to check the effective transmission of the information and number assigned to his application. Said procedure will allow the requesting person to carry out on line the follow-up of the processes of formal control. The above mentioned application will have to be formalized by the submission of the Multinota Form F.206 (Only Available in Spanish) attaching the following documentation:
Value Added Tax ( V.A.T) Imports
Tax Refunds to Exporters The exporters can recover the tax that had been billed to them for goods, services and leases really destined to exports or to any stage of the achievement of said exports. The recovery operates trough the compensation of the tax with the tax that in short the exporters owe for their burdened internal operations. If the compensation was not possible or it was carried out partially, the surplus will be compensated with other taxes at the expense of the General Tax Directorate or otherwise, it will be refunded or its transfer for the benefit of third parties will be allowed. Tax Treatment of Real Estate Leasing in the Republic of Argentina. The lease of real estate is subject to the Value-added tax, and in that sense the legal rule of the tax establishes that the lease of real estate will be tax-exempt when some of the following situations are fulfilled:
The tax base will be the one resulting from adding to the price agreed in the respective contract, the amounts that by any concept are stipulated as complement therein, except the amounts corresponding to charges, expenses and other costs for rates and services to be met by the lessee. Besides, by virtue of the outlined for the Federal Administration of Public Revenues, through the Ruling 69/2001 (Directorate of Legal Advising): in the case of leases that are subject to the tax, the person who is liable for the tax is the person resident abroad and owner of the real estate, except that the intermediary carries out the lease on his own behalf, in which case the liable person in a personal capacity will be the latter, in accordance with the set forth established in Article 14 of the Decree of the Law on Value-added tax. (Only available in Spanish) In contrast, in the case of real estate located in the Republic of Argentina which are owned by natural persons who are resident abroad, the taxpayer must pay the Tax on Minimum Presumptive Income since urban real estate which are destined to lease and are owned by natural persons who are resident abroad, are considered as permanent establishments. The above mentioned real estate will remain excluded from the regime of substitute taxpayer of the Tax on Personal Assets. Besides, when said real estates are assessed pursuant to the applicable legislation, they will be subject to the Tax on Minimum Presumptive Income, if the minimum threshold is greater than the tax-exempt threshold of $ 200.000.-( two hundred thousand of legal tender in the Republic Argentina). Regarding the Income Tax, foreign beneficiaries will be subject to the withholding of 35 % of the net profit, which will be levied in the form of a final tax. In this sense, the tax Law establishes that “net profit” shall be understood as the 60 % of the sums paid as rents or leases of real estate placed in the Argentina. [ Back to top ] How to pay my taxes. In order to pay your tax obligations, you can find the information about the places authorized to such effect and the diverse methods of payment. Accede to this information selecting the Tax or Regime. List of (Banks authorized for paying taxes) (Only available in Spanish)
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