English English English


About AFIP
 
The Federal Administration of Public Revenue (AFIP) is an agency created in 1997. Its main function is to enforce the Tax and Customs policy. Some of the activities and functions of the agency are:
 
To enforce, collect and control taxes set forth by the provisions of the corresponding legal rules.
To levy taxes on transactions conducted in the territory and in the jurisdictions where the national tax authority is entirely or partially empowered to do it.
To levy taxes on imports and exports and on other transactions ruled by Custom rules and regulations.
To apply fines, surcharges, interests, warranties and any other charge that may arise due to the enforcement and fulfillment of the legal rules.
To control the international trade according to the provisions of the legal rules
To classify the tariffs and determine the valuation of goods.
To carry out all functions related to its mission and all the functions necessary for its internal control.
 
The Federal Administrator of Public Revenue is the highest authority within AFIP and he is appointed by the Executive Power and confirmed by the Congress.
 
AFIP is divided into three General Directorates:
 
Tax General Directorate: its main function is the enforcement, collection and control of national taxes.
Customs General Directorate: its main functions are the collection of taxes applied to imports and exports, and control of international trade.
Social Security General Directorate: its main functions are to collect and control the resources that are the basis of the Social Security assistance. To accomplish that purpose, other organizations and institutions (for instance, the Department of Labor) work with it.




Index

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




Tax legislation and administration

Enactment of Tax Laws.

The Argentine Constitution establishes that the National Congress shares its legislative powers to tax with the provincial legislatures and with the legislature of the City of Buenos Aires. The power to impose taxes on imports and exports is solely vested in the National Congress that is formed by the House of Representatives and the Senate.

A bill is discussed in the House of Representatives. Said bill is passed, with or without amendments, after being considered by the Lower House. Then it goes to the Senate where it goes through the same process: study, report, and debate. The Senate can decide to amend the bill, therefore, it is sent back to the House of Representatives for further consideration or it can approve the bill and then send it to the Executive Power. The Government has the veto power. So, if it vetoes the bill, it must be sent back to the Congress where it can be passed by a two-thirds majority. A bill becomes law after its promulgation. Similar procedures are followed in the provincial legislature.

Argentina does not have a "tax code". The different categories of taxes are governed by separate laws, which are frequently amended.

The Federal Government collects income tax, personal property tax, VAT, and excise taxes throughout the country and distributes an specific amount of each tax, previously established, to the provinces. In addition, the Government of the City of Buenos Aires and most of the provinces have celebrated an agreement to protect companies, with activities in more than one jurisdiction, from multiple taxation that may result from Gross Receipts Taxes.

The tax laws are complemented by tax regulations issued by Executive Power.




Tax Administration.

The Federal Administration of Public Revenue is responsible for the collection and administration of national taxes. It is one of the major agencies of the national government and it answers directly to the Department of Economy.

It is headed by the Federal Administrator, who is at the same level of a State Secretary. Then, there are two General Directors, one in charge of the Tax General Directorate and another in charge of the Customs General Directorate. The Federal Administrator, the General Directors, the Deputy Directors and other public officers are called "administrative judges", since they have the power to make assessments, impose fines and settle disputes arising from the assessment or claims for the refund of taxes.

The Federal Administrator has the power to interpret the laws and decrees related to taxes. The interpretations, which are published in the Official Gazette, are binding upon the parties if they are not appealed before the Treasury Department within 15 days. When appealed, they are binding only after the final judgment is published. In addition, the rules issued by the Tax Court and the Civil Courts are sources of information for interpreting the meaning of the tax laws.

Customs Administration. Customs duties are exclusively federal. The Customs General Director has the power to promulgate rules, which cannot be appealed in some cases. In other instances, they may be appealed before the National Tax Court or the Federal Courts. The Customs rules have more than 3000 sections, which are similar in nature and structure to those applied in other countries. Customs duties are based on the CIF (cost, insurance and freight) value of the goods. Imported goods are also subject to VAT and excise taxes. As from September 23, 1981, the main rule has been included in a Custom Code (Law 22415).





Income Tax

Introduction

According to the Argentine Income Tax Law, Argentine citizens must pay income tax for their global income. Non-Argentinean residents must pay the tax only for the income obtained in Argentina

In Argentina, the types of business organizations are basically the same as in other countries: sole proprietorship, partnership, limited liability company, corporation and subsidiaries of foreign companies

Local businesses are those companies, enterprises, partnerships, foundations, trusts and investment funds registered in Argentina. Other companies and enterprises located in Argentina are also considered local

PorArgentine corporations must submit annual returns with their annual financial statements. Each return must show the adjustments that were necessary to obtain the taxable income or loss and the calculation of the tax due. Returns must be submitted to the Federal Administration of Public Revenue within five months after the end of the fiscal year

 
 




Corporations

Fiscal Year

Generally, the fiscal year is the calendar year, although there are no legal restrictions for the legal persons to establish the end of their fiscal year at any time of the calendar year. The only condition in order to be considered a regular fiscal year is that it must cover 12 consecutive months. All registered companies keep accounting records and pay the Income Tax based on the net income obtained during the accounting year.

Taxable base

Corporations must submit a tax return based on the information included in their financial statements. The net taxable income is assessed according to the law. The net income that appears on the financial statements is subject to the adjustments set forth in the law.
Subsidiaries and other permanent offices owned by foreign people or companies, must submit their accounting records separately from their parent companies or other subsidiaries, making the necessary amendments to assess their Argentine tax result



Deductible Items

The Income Tax Law establishes deductions for the expenses necessarily incurred in obtaining and maintaining the income. In addition, the Income Tax Law contains rules for specific expenses and allows the deduction of certain items. Expenses incurred abroad are presumed to be related to foreign income and are not deductible. The expenses related to the income of a company that is partially derived from a foreign source or that is tax free, must be allocated between taxable and non-taxable income.

The following items shall be deductible


Expenses and other expenditures related to the business activities
Fines and allowances for bad debts according to the customs and conventions of the industry. The Tax General Directorate may set rules regarding the procedures to pay such fines.
Organization expenses. The Tax General Directorate shall accept that expenses incurred in the establishment of a company may be repaid no later than FIVE (5) years or be entirely written off in the first year.
Commissions and expenses incurred abroad, if they are fair and reasonable
Expenses or revenues incurred in for medical care, educational and cultural aid, subsidies to sport clubs and any expense related to the assistance of employees or workers shall be deductible. And, bonus of any kind paid to the personnel shall be deductible
Representation expenses, duly documented, up to an amount equivalent to 1.5% of the total amount of the employees’ wages paid during the fiscal year
Fees paid to directors, statutory auditors or surveillance council members and the ones agreed for the managing partners according to the limits set forth by law

Interests are deductible without taking into account the nature of the obligation or the financing term. However, there is a limitation for the deduction of interest from business loans. This limitation establishes that the sixty per cent (60%) of the interests (except for the interests from loans granted by individuals and interests paid to financial institutions located in countries that are not subject to the standards of Basel Committee on Banking Supervision) are not deductible if they exceed one of the following limits: the total liabilities exceed the 250% of the total equity, or the total interests exceed the 50% of the taxable net income calculated before deducting the interests.

Charitable contributions made to the following: national, provincial and municipal tax authorities; tax-exempt organizations; religious institutions; authorized mutual aid societies; charitable organizations; trade union organizations; physical training schools; educational, scientific, literary and artistic institutions. As from 1992 the deduction is limited to the 5% of the net taxable profits. The surplus cannot be transferred to future fiscal years.


Section 82-84 and 87 – Law 20628 (amended text of the law 1997)



Non-deductible expenses

The following items shall not be deductible without distinction of categories:


The Personal expenses and expenses related to the means of support of the taxpayer and his family, unless otherwise provided in Sections 22 and 23
The interests arising from the money invested by the owner or partner of the companies included in section 49(b), as well as the amounts withdrawn as incomes or as wages and any other concept that implies a withdrawal on account of profits
The salaries or wages of the spouse or relative of the taxpayer

The tax related to this Law and any other tax on vacant lands or fields

The salaries or wages paid to members of a Board of Directors, councils or any other organizations operating abroad, and fees and other wages for technical-financial advice or for any kind of advice requested abroad, when the amounts exceed the limits set forth by the regulations
The Amortization of goodwill, brands and similar assets
The gifs not included in Section 81 (c), food stamps or any other kind of generosity act in money or kind
The net losses arising from illicit operations
The compensations for the use of brands and patents belonging to aliens, for amounts that exceed the limits set forth in the regulations

Section 88 – Law 20628 (amended text of the law 1997)



Inventories

Inventories must be valued as follows:

Goods for sale, raw materials: the cost will be the one that have the last purchase made up to 2 months before the end of the fiscal year
Manufactured products: the price will be the one that have the last sale made up to 2 months before the end of the fiscal year, after deducting the sale expenses and the profit margin included in the price
Estate: market value or estimated cost according to the annual revaluation

When the personal property is considered as a good its value is related to the sale price.


The cost of the goods includes all the expenses incurred up to the date the goods are ready for sale. The manufacture cost does not include the interests on the capital. The taxpayer may write down the value of the goods that are obsolete, damaged, or diminished in value for any reason, unless the Federal Administration of Pubic Revenue questions the amounts used to determine the appraisal of the inventory. If the taxpayer proves that the value of the goods determined in accordance with the established methods exceeds the market value at the end of the year, he can choose to use the market value instead.



Losses

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

When there is a loss during a year, it can be deducted from the taxable income gained during the next years. No deductions can be made from the remaining of the loss after FIVE (5) years

The losses arising from activities which results shall not be considered as from an Argentinean source can only be compensated with the same kind of income

Section 19 – Law 20628 (amended text of the law 1997)


Exemptions

The following items are exempt from taxes:

Incomes from tax exempt entities as set forth by national laws, as long as the exemption includes the tax mentioned herein and if the income derives directly from the activity that generated the exemption
The compensations received by diplomats, consular agents and other foreign representatives in the Argentine Republic while performing their duties. The income derived from buildings owned by foreign governments and used as offices or residence and the interests derived from the fiscal deposit
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 from partnerships, foundations and civil entities dealing with social assistance, public health, charities, education, science, literary or artistic activities, unions, only when the income and the assets of the company are allocated to achieve the purposes of company, and not to be 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

The exemption mentioned in the first paragraph is not applicable in the case of foundations and partnerships or trade unions that perform industrial and/or commercial activities

Interests derived from the following deposits made at institutions subject to the legal regime of financial entities
Incomes from tax-exempt entities pursuant to national laws, as long as the exemption includes the aforementioned tax and if the income directly from the activity that generated the exemption
The compensations received by diplomats, consular agents and other foreign representatives in the Argentine Republic while performing their duties. The income derived from buildings owned by foreign governments and used as offices or residence and the interests derived from the fiscal deposit
 
Saving account
Special saving accounts
Term deposits
Interests registered in administrative or judicial Courts in relation to work-related credits
Incomes arising from securities, shares, bonds, bills, and other commercial papers issued or to be issued by official entities according to a general or special law or when the EXECUTIVE POWER so determines
The amounts received by exporters of goods or services as reimbursements established 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 case of excess and the amounts earned by limited liability companies, limited partnerships and corporations 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 organizations, with the headquarters 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.


The interests derived from promotion loans granted by international organizations or official foreign agencies, with the limitations set forth in the regulation
Interests arising from credits granted by foreign entities to national, provincial, municipal to the Autonomous City of Buenos Aires and to the Central Bank of the Argentine Republic
Income arising from purchases, change, exchange or disposal of stock, securities, bonds and other negotiable instruments obtained by natural persons or undivided estates, as long as they are not included in the provisions set forth in section 49 (c), excluding those derived from the aforementioned transactions, which main objective are unlisted securities

For the exemption mentioned in the previous 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 established abroad, and that due to their legal nature or bylaws have as main business activity to make investments outside the jurisdiction of the country of incorporation and/or cannot conduct certain transactions therein and/or certain investments expressly determined in the legal or statutory provisions that regulate them. The provisions set forth in Section 78 of Decree 2284, dated on October 31, 1999 and its amendments, ratified by Law 24307 are not applicable

TThe exemption mentioned herein shall be applied to investment companies, trustees and other entities subject to taxation and/or tax obligations, organized as a result of privatizations, according to the provisions set forth in Chapter II, Law 23696 and its regulations. The transactions must be related to shares from employee stock ownership plans, implemented pursuant to Chapter III of the aforementioned law

Income arising from garbage collection and from any kind of activity related to environmental sanitation and conservation -including counseling- that the entities and organizations included in Section 1, Law 22016 obtained as long as they reinvest said income in environmental-related activities
Section 20 – Law 20628 (amended text of the law 1997)



Rate

The general rate was established at 35%.
Section 20 – Law 20628 (amended text of the law 1997)



Leasing

The Argentine legislation establishes that the tax treatment of income arising from leasing contracts is divided into three categories: financial leases, operational leases and installment sales. The differences among said categories lie in the nature of the company and in the characteristics of the leased assets

Financial leases: the leasing company is a financial institution, a “financial trust” or an entity which main purpose is entering leasing contracts. The leased assets may be personal or real property (not intangible assets). The term of the contract must exceed the 50%, 20% or 10% of the useful life of the assets, in the case of personal property, non residential real property and housing, respectively. The contract must include the option to purchase price. The taxable base is the difference between the price of the lease and the cost of the asset (the cost is the acquisition value minus the part of the cost chargeable to the option to purchase divided by the contract term)

Operational leases: The lessor may be any person with legal capacity to enter into contracts (including people with the capacity to enter into financial leases). However, the terms of the leasing contracts shall not exceed the minimum period established for the financial leases. Leased assets include intangible assets and the option to purchase price is determined upon delivery of same. The taxable base is the lease paid and the lessor may deduct the depreciation of the leased property

Installment sales: in the case of operational leases, when the option to purchase price is lower than the tax expense according to Income Tax Law, the transaction will be considered an installment sale from the beginning. The lessee may not deduct the lease paid, but he is allowed to deduct the depreciation of the leased assets and the interests paid



Insurance activity

The income from Argentine source is the one arising from insurance activities that cover risks over assets located in Argentina or that cover people living in Argentina.
The differences in foreign exchange rates must be accounted for when they arise from taxable transactions or from credits that finance taxable transactions. The incomes that arise from these differences are considered of Argentine source




Foreign Exchange Differences

The differences in foreign exchange rates must be accounted for when they arise from taxable transactions or from credits that finance taxable transactions. The incomes that arise from these differences are considered of Argentine source





Accounting records for Income and Expenses

The law does not order to keep special books for income tax, however, the taxpayers engaged in business must enclose, together with their tax returns, a copy of their annual audit report, balance sheet and profit and loss statement, certified by a Public Accountant. The Commercial Code mentions several accounting books and establishes that these books must be bound, the pages numbered, the transactions entered clearly and in chronological order. These books must be signed by the Public Registry of Commerce

The subsidiary and the branches of foreign entities that operate in Argentina must keep their accounting records separate from those of their parent companies, and make the necessary adjustments to determine their actual net income from Argentine source. Should this situation not be observed, the Federal Administration of Public Income may determine the existence of only one economic unit and make its own assessment of taxable income



Long term contracts and Installment sales

When the transactions that generate the profit cover more than one fiscal year, in the case of building, rebuilding and repairs of any nature for third parties, their gross income must be reported according to any of the following methods, at the taxpayer's option

a) Assign to each fiscal period the gross benefits received during the year and that correspond to the percentage of gross income estimated to be earned on the completion of the building
b) Assign to each fiscal period the gross profit resulting from the total amount to be charged for all the work done minus the expenses

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

If appropriate, the Tax General Directorate 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 the works performed by the taxpayer and it cannot be changed without prior written consent by the Tax General Directorate. Said agency shall determine as from which fiscal period the method may be changed

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



Foreign beneficiaries

When net profits are paid to organizations, companies or any other foreign beneficiary, the payer must withhold thirty five percent (35%) of such profits and pay said percentage to the Federal Administration of Public Revenue in one single payment

Foreign beneficiary shall mean any person or entity that perceives its income abroad, directly or through attorneys-in-fact, agents, representatives or any other person in the country; in addition, foreign beneficiary shall mean any person who collects the income in the country, but does not prove permanent residence in it. If the aforementioned percentage cannot be withheld, the profit shall be in charge of the entity making the payment, and it will keep its rights to request the reimbursement from the beneficiary.

Section 91-93 – Law 20628 (amended text of the law 1997)

For tax purposes, transactions among affiliated companies are considered as transactions between third parties as long as the terms and conditions of the agreements were made according to the arm’s length principle. A loan or royalty agreement that does not meet the provisions of the corresponding laws shall not influence the assessment of taxable profits. The Central Bank must be informed of all loans and said Bank shall approval all the proposed transaction. Royalty agreements and every agreement for the transfer of technology are subject to the following provisions

 They must be recorded at the National Intellectual Property Institute.
 
 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 do not observe the arm’s length principle, they must be adjusted according to the transfer pricing rules




Corporate reorganization

When business organizations, goodwill and companies in general are reorganized, the results that might arise as a consequence of said reorganization shall not be taxable, as long as the surviving entities continue with the activity of the company or any other related activity during a period of at least TWO (2) years as from the date of the reorganization

In such cases, tax rights and obligations of the reorganized subjects shall be transferred to the surviving entities

The reorganization must be informed to the Tax General Directorate according to the terms and conditions set forth by said Directorate
When the reorganization does not entail the total transfer of the reorganized companies, the transfer of tax rights and obligations shall be subject to prior consent of the Tax General Directorate, except in the case of spin-off.

Section 77 and 78 – Law 20628 (amended text of the law 1997))



Types of income categories

The law divides the types of income in four categories: income from land, income from capital, business income and personal service income. The tax return reflects the net income of each category and, after the deduction of the allowed items, the taxable income or loss is assessed. All the information provided by the taxpayers in their tax returns is subject to the examination of the Federal Administration of Public Revenue


Income from land

They are part of the first category and they must be declared by the real estate owner

a) The income in money or in kind from the leasing of urban or rural real property
b) Any kind of consideration received from third parties for the usufruct, use, habitation or antichresis rights
c) The value of improvements made on real property, by the lessee or tenant, that are a benefit for the owner but are not paid by him
d) Direct or real estate tax and other taxes that the lessee has paid
e) The amounts paid by the lessee or tenant for the use of furniture and other fixtures or services provided by the owner
f) The lease value of the real property used by the owner for pleasure, vacations or similar purposes
g) The alleged lease value of the real property transferred for no consideration or at an undefined price

Income obtained by the lessee is also included in the first category.

Section 41- 44 – Law 20628 (amended text of the law 1997)



Income from Capital

The income from the second category are as follows:

a) Income from titles, certificates, bonds, treasury bills, debentures, secured or unsecured loans, by public deed or not, and any amount resulting from the allocation of capital, notwithstanding its currency or payment conditions
b) Income for the lease of personal property and rights, royalties and temporary benefits
c) Life annuities and income or participation in life insurances
d) Net profits from nondeductible contributions that derive from the fulfillment of the requirements of the private retirement insurance plans managed by entities controlled by the Superintendency of Insurance , as long as they are not due to personal work.
e) Net redemption of nondeductible contributions due to interruption of the retirement insurance plans, except when the provisions of Section 101 are applicable
f) The amounts received as payment for the duty not to perform an act or for abandoning or not exercising an activity. However, this income shall be considered as third or forth category when it relates to a duty not to perform a business activity, industry, profession or job
g) Interest distributed by cooperatives, except for consumer cooperatives. In the case of worker cooperatives, the provisions in Section 79 shall be applicable
h) Income received as payment for the permanent transfer of goodwill, brands, patents, royalties and similar rights, even if this kind of transactions are not regularly performed
i) Dividends and profits, in money or in kind, that the companies included in Section 69 (a) distribute to their shareholders or partners
j) Income originated by rights and obligations from derivative documents and/or contracts

When a group of transactions with derivative documents and/or contracts equals another transaction or financial operation stated by this law, the standards applied to equivalent transactions or operations shall be applied to such group

k) Income from purchase, change, exchange or transfer of shares

Section 46-48 – Law 20628 (amended text of the law 1997)



Income from businesses:

a) The income mentioned in section 69 is detailed as follows
 
The share of the limited partners of corporations and joint stock companies registered in the country
The share that active partners have in limited liability companies, limited partnerships and 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 mentioned in Section 1, Law 22016, not included in the aforementioned paragraphs, as long as no other tax treatment applies according to Section 6
Trusts registered in Argentina according to the provisions set forth in Law 24441, except for those where the trustor is the beneficiary
The exception mentioned herein shall apply in the cases of financial trusts or when the trustor-beneficiary is a subject mentioned under 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 incorporation or signing of the contract
Commercial, industrial, agricultural or mining companies or any other business registered as permanent company but owned by associations, partnerships or companies registered abroad or by natural persons living abroad
 

Partnerships registered in the country are not included herein, notwithstanding the application of the provisions set forth in Section 14 and its consecutive and concurrent sections

   
b) Income arising from any kind of companies registered in the country or from companies owned by a single person and which are registered in the country.
   
c) Income arising from the activity conducted by a broker, auctioneer, trustee and any other trade auxiliaries not included in the forth category
   
d) Income arising from the subdivision of land in plots for urbanization purposes; and income from the building and sale of real property according to Law 13512
   
e) Income arising from trusts where the trustor is the beneficiary, except when it is a financial trust or when the trustor-beneficiary is a subject included in Title V
   
f) Any other profit not included in any of the other categories

Section 49 and 69 – Law 20628 (amended text of the law 1997)



Personal Service income

This category includes salaries from public or private employees, professional fees, retirement benefits and salaries paid to partners/managers of a company. In the case of personal services under a contract of employment, the tax is withheld by the employer, who must submit an annual income tax return for the employees’ taxable income, withholdings, tax-free income and other income taxes withheld by other employer



Personal allowances - only Spanish -



Income tax rates

ANNEX III - GENERAL RESOLUTION 2299 – Section 90, Income Tax Law
SCALE FROM SECTION 90 OF INCOME TAX LAW, 1997 TEXT AND ITS AMENDMENTS


SCALE SEGMENTS (SECTION 90) ACCUMULATED AMOUNTS
ACCUMULATED NET TAXABLE INCOME PAY
From more than $ to $ $ Plus % Over the surplus in $
0 10.000 - 9 0
10.000 20.000 900 14 10.000
20.000 30.000 2.300 19 20.000
30.000 60.000 4.200 23 30.000
60.000 90.000 11.100 27 60.000
90.000 120.000 19.200 31 90.000
120.000 onwards 28.500 35 120.000


Section 90 – Law 20628 (amended text of the law 1997)



Payment of the tax

AFIP establishes, through General Resolutions, the due dates to file the tax returns and to pay the unpaid balances arising from the income tax. The payments shall be made through a bank deposit or an electronic transfer, according to the provisions of the general resolution. In addition, the taxpayers and income tax payers are required to make advanced payments on account of the due amount. A natural person makes FIVE (5) advanced payments. The calculation basis is the tax established for the previous tax period. This estimation basis admits deductions. A TWENTY PERCENT (20%) shall be applied on the resulting amount. General Resolution 327/1999 and 2298/2007

General Resolution 327/1999 and 2298/2007, AFIP.








Personal Property Tax

For the purposes of this section:

The tax law recognizes two categories of taxable persons and establishes the tax liability in two different ways

a) Natural persons domiciled in the country and estates located in said country for the assets located in the country and abroad
b) Natural persons domiciled abroad and estates located abroad for the assets located within the country


For the purposes of this section, the following people shall be considered as domiciled in the country: diplomatic and consular agents, technical and administrative staff, and any other national civil servant working in provincial or local commissions who live abroad with their relatives while exercising their functions

This tax applies to natural persons or estates at the end of each fiscal year, including those affected to economic processes


Section 17 – Law 23966 (amended text of the law 1997)

The assets located in 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 entities, loans, rights to use any patent, trade marks, industrial property, copyright of literary,

Section 19 – Law 23966 (amended text of the law 1997)

On the other hand, assets located abroad include: real property, mortgages on real property located 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 for which the debtors are domiciled abroad, etc

Section 20 – Law 23966 (amended text of the law 1997)

The following items are exempt from taxes:


Assets owned by members of diplomatic and consular missions, their administrative and technical personnel, in accordance with the limitations established by the 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 the franchises mentioned in Law 19640
Real property located in rural areas mentioned in Section 2 (e) of the 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 certificate representing reprogrammed bank term deposits (CEDROS)
Deposits made, in local or foreign currency, in the entities included in Law 21523, and in term deposits, saving accounts, special saving accounts or any other kind of capital in local and foreign currency according to the provisions set forth by the CENTRAL BANK OF THE ARGENTINE REPUBLIC


Section 21 – Law 23966 (amended text of the law 1997)


The Personal Assets Tax Law establishes standards to assess the different assets located in and out of the country, to determine the taxes.


Section 22 and 24 – Law 23966 (amended text of the law 1997))

The individuals exempt from this tax are those whose assets, assessed according to the provisions of Law, totaled THREE HUNDRED AND FIVE THOUSAND ARGENTINE PESOS (ARS 305,000) or less.


Section 24 – Law 23966 (amended text of the law 1997)


The tax to be paid by the taxpayers will arise from the application of the tax rate calculated on the total value of the taxable assets, excluding shares from the capital of any kind of companies regulated by Law 19550, except when they are companies owned by a sole owner and which amount exceeds the ARS 305,000:

Amount Tax rate
FROM ARS 305,000 TO ARS 750,000 0.50%
FROM ARS 750,001 TO ARS 2, 000,000 0.75%
FROM ARS 2, 000,000 TO ARS 5, 000,000 1.00 %
FROM ARS 5, 000,000 ONWARDS 1.25%


Section 25 – Law 23966 (amended text of the law 1997)

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

Section 26 – Law 23966 (amended text of the law 1997)






Minimum Income Tax

In the Argentine Republic, the tax on the minimum income is applicable and established on the assets assessed according to the provisions set forth in the Law 25063.

Section 1 – Law 25063.

Taxable person” means:


The companies located in the country. These taxable individuals shall be considered as such as from the date of their incorporation or the date of execution of the contract;
One owner companies belonging to people domiciled in the country. All one owner companies 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, Law 22016 and not comprised in the aforementioned subsections;

Individuals owning rural real property;

Trusts formed in the country according to the provisions set forth in Law 24441, except for the financial trusts mentioned in Sections 19 and 20 thereof;
Mutual funds formed in the country, except for those referred to in Paragraph 1, Section 1 of Law 24083 and its amendments.
Business places where a natural or legal person, an estate, a patrimony or a one owner company conducts, totally or partially, its activities and the premises related to said activities, shall be considered as permanent establishment according to the law

The taxable base includes goods from rural assets, which shall be assessed according to the legal standards

Sections 4-7 and 10, Law 25063.

The entities regulated by the Financial Institutions Law and the insurance companies subject to the control of the National Insurance Superintendency, which reports to the Bank and Insurance Department, part of the Economic Policy Department of the Department of Finance, shall consider as their tax base the twenty percent (20%) of the value of their taxable assets pursuant to the aforementioned sections. Likewise, the tax base for the livestock, fruits and products consignees will be forty percent (40%) of their assets according to the provisions of the Law.
In the case of the abovementioned consignees the percentage shall only be applicable to the assets involved in the activity of the consignment
Section 11 – Law 25063

The following assets shall be considered as permanently located abroad:

Real estate property that is outside Argentina;

Interests in land on assets located abroad;

Ships and aircrafts registered abroad;
Automobiles licensed or registered abroad;
Personal property and livestock located outside Argentina. The personal property and livestock transferred from the country shall be considered as located permanently abroad when at least six consecutive months have elapsed before the end of the fiscal year
Stocks and shares issued by foreign entities and investments in a company including one owner company, and other securities representing the capital stock of companies registered or located abroad;
Foreign bank deposits. When such deposits arise from remittances of funds made from the country, the minimum balance from the corresponding accounts shall be considered as permanently settled abroad six months before the end of the fiscal year. For such purposes, minimum balance shall be the sum of credit balances from 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 the transfer, for a valuable consideration, of assets located in the country at the time of sale or when the loans arise as a consequence of activities developed in the country, they shall be considered as permanently settled abroad after staying abroad for more than six months as from the date when they became due to the end of the fiscal year

In all the cases, foreign capital local companies shall consider as an asset the debit balances arising from the account of the parent company, the owner, the branch, the bankrupt company, and the natural or legal person that directly or indirectly controls it.

For the purposes of the aforementioned paragraph, foreign capital local company shall be that which is considered as such according to the provisions set forth in Section 2, Subsection 3 of the Law on Foreign Investment (amended text of the law 1993).
The debit balances of any origin from an owner or partner shall be considered as an asset as well.

Sections 8 and 9 – Law 25063


Exemptions

The following items are exempt from taxes:


Assets exempted from income tax as established byo national laws or approved international agreements according to their terms and conditions;
Assets exempted from income tax pursuant to national laws or approved international agreements in the terms and conditions thereof;
Shares and interests in the capital of other taxed companies, including one owner companies or activities and the contributions and advanced payments for future payments by shareholders, when there are documented and irrevocable commitments to subscribe shares, except for those that accrue interests or that update in similar conditions as between independent parties, taking into account market practices;
Assets delivered by trustors, taxable individuals, to the trustees of trusts that are similar when considering the lien, according 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 form part of the assets of the trust fund;
Shares from the mutual funds included in Section 2 (g) and shares from other mutual funds, for the taxable value of the shares in taxed entities that form part of the assets of the fund;
Taxed assets located in the country assessed according to the rules of law and with a total value equal or below to two hundred thousand pesos (ARS 200,000). When there are assets taxed abroad, such amount shall increase after applying the percentage of the asset taxed abroad.

When the value of assets exceeds the previously mentioned amount or the one estimated according to the aforementioned provisions, as the case may be, the taxed assets owned by the taxable individual shall be entirely taxable

Total or partial exemptions applied to securities, bills, bonds and other negotiable instruments in force or to be in forced in the future, shall not affect the taxpayers mentioned herein.

Rate

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

Section 13 – Law 25063






Value added tax (VAT)

Scope:

The value added tax shall apply on:

Sales of personal property within the country made by a taxable person
The independent provision of services within the country
The import of personal property
The provision of services abroad, when the actual use of the services takes place in Argentina and the user is a registered taxable person


Section 1 – Law 20631 (amended text of the law 1997)

Any transfer made for a valuable consideration between natural or legal persons, estates or entities of any kind which entails the transfer of the ownership of personal property (sale, exchange, 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 provision of services, and the sale of those fixed to the ground at the time of transfer, as long as they are considered inventories.

Section 2 – Law 20631 (amended text of the law 1997)


Taxable Persons:

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


a) Regularly sells personal property or makes commercial transactions or is an heir or legatee of taxable persons. In this case, they would be taxable persons when they sell goods that would have been taxable while owned by the deceased person
b) Sells or buys in his name but on behalf of others
c) Permanently imports personal property in his own name and behalf or on behalf of others
d) Is a building company that makes works included in Section 3 (b), using any business organization form, including one owner companies. For the purposes of this Subsection, building companies are those which, directly or through third parties, make the works mentioned or totally or partially sale the real property for commercial purposes
e) Provides taxable services
f) Is a lessor, in the case of taxable leases

Section 4 – Law 20631 (amended text of the law 1997)


Taxable Event

A taxable event is perfected::

a) In the case of sales (including accountable assets) when the goods are delivered, when the invoice is issued or when an equivalent act is performed, whichever happens first
In the case of primary products from agriculture and cattle raising; poultry farming; fish farming and beekeeping, including obtaining fresh eggs, natural honey and pure beeswax; forestry and wood extraction; hunting and fishing and activities related to the mineral, raw oil and gas extraction through operations in which the price is fixed after the product is delivered, the tax shall be charged at the time said price is fixed
b) In the case of provision of services or contract of services or work, when the contract or service is terminated or when the total or partial amount corresponding to the price is paid, whichever happens first, with the exceptions set forth by the law
c) In the case of work performed on real property of third parties, once the final completion certificate is accepted, whether partially or totally, or when the total or partial amount corresponding to the price or the amount mentioned in the invoice is paid, whichever happens first
d) In the case of lease agreements of telecommunication services, upon due payment or upon collection thereof, whichever happens first. The same criterion shall be applied to the leases and services included in Section 3, Paragraph 21 (e); said consideration must be calculated according to amounts or sale units, production, exploitation or similar indexes, when the payments are made in installments for the periods in which the total term of use of the personal property is divided
e) In case of work performed directly or through third parties on the real property of a person when the conveyance is based on a valuable consideration. This takes place when the deed of conveyance of title is drawn or when legal possession is acquired, if the latter happens first. In the case of court-ordered sales through public auctions, the conveyance shall be considered as performed when the final court order is issued
f)

In case of imports, once the transaction is completed

g)

In the case of a hire-purchase agreement, when the good is delivered or when there is an equivalent action, when the lease refers to the cases stated in the law


Notwithstanding the aforementioned subsections, when down payments or advanced payments are made in order to fix the price, the tax shall be chargeable upon payment and on the amount received

Section 5 – Law 20631 (amended text of the law 1997)

Exemptions

Exemptions within the territory of the country:

Sales (and works which involve the transfer of exempted goods) of the following: of the following goods: Books, fliers and similar printings; water, bread, milk, medicines, postage stamps valid for use in postal services, fiscal stamps and other similar stamps, betting slips, lottery tickets and other forms of duly authorized gambling, aircraft use in commercial activities and defense or inland security, ships or boats acquired by the National Government.

Provision of services such us: services rendered by the Government (National, Provincial or Local) or by public agencies; school or university education provided by private institutions subject to public educational programs; cultural services provided by religious institutions; hospital and medical care and related activities; provision of medical care in the exercise of medical and paramedical profession; transportation services for sick or injured people in vehicles specially designed; tickets for theatre, cinema, musical shows and sport events; production and distribution of motion picture films; local transport of passengers (taxis, buses, etc.) up to 100 km., international transportation; transactions related to deposits and current accounts in bank institutions according to Law 21526, directors’ fees; leasing of real property

Section 7 – Law 20631 (amended text of the law 1997)



Exemption on imports:

The following transactions shall be exempted from taxation:

Final imports of goods qualifying for exemption from customs duties under special regimes for tourists, scientists and technicians, diplomatic agents, etc.;

The final import of goods that qualify for the exemption from customs duties because the import was made by religious institutions and other entities exempted from income tax, to supply non-profit medical care or to carry out scientific and technological researches;

The final import of samples and packages exempted from customs duties

The import of goods given to National, Provincial or Local Governments

The import of services rendered abroad, when the service is requested by the National, Provincial or Local Government

Section 8 – Law 20631 (amended text of the law 1997)


Exemption on exports:

The export of goods and services are exempted from VAT. The services rendered within the country shall be deemed to be exported if they were effectively applied or economically used outside the country.

Section 8 and 9 – Law 20631 (amended text of the law 1997)


Rate:

The standard tax rate is 21%.

The rate shall increase to the 27% in the case of sale of gas, electric power, water, sewerage, telecommunications, other than those supplied for residential use or to real property used for recreation or vacation and only if the beneficiary is a taxable person.

The 10.5% rate shall apply in the following cases: works on real property for housing (excluding those constructions on existing property which are not works in progress); sale and import of living bovine animals, meat or edible spoils from bovine animals, fruits, pulse and vegetables; interest and other costs on loans granted to final consumers by financial institutions under Law 21526, interest and other costs on loans granted to companies involved in the transportation of passengers by land granted by financial institutions under Law 21526.

Section 28 – Law 20631 (amended text of the law 1997)


Taxable base:

Goods: the net sale price including additional services and excluding all chargeable taxes and the value added tax;

Services: the total payment made to the person that provides the services.

Imports: the value of goods calculated in the same way as for customs duties, plus import duties and any other charge imposed on the goods. The value added tax and the excise duties are excluded from the taxable base.

Section 10 and 25 – Law 20631 (amended text of the law 1997)


Vat Returns:

The fiscal period is the calendar month, so a monthly VAT return must be filed between the 18 and 22 of the month following the month concerned. In the case of imports, the VAT is computed and paid together with the custom duties.

Special Regime For Exports:

The exports are exempted from the value added tax. In addition, the exporters may count as tax credit the value added tax paid on raw materials and other purchases related to exports. When the deduction of the tax credit is not possible, or when it is partially deducted, the exceeding amount of the credit not used will be allowed as credit in other national taxes or it would be reimbursed to the taxpayer.

Section 43 – Law 20631 (amended text of the law 1997)





Internal revenue

The internal revenue shall be applied in the national territory to tobacco, alcoholic beverages, beer, non-alcoholic beverages, syrup and spirits; automobiles and diesel motors; mobile and satellite phone services; champagne; luxury goods; recreation or sport ships and aircrafts according to the provisions of the Law.

Section 1 – Law 24674


Chargeable event:

This tax is levied on the sale of the aforementioned goods. The term “sale” includes any transfer and import of goods for consumption or resale. In the case of alcoholic beverages, the term “sale” means the transfer carried out by the manufacturer or importer or by the person on behalf of whom the elaboration was carried out.

Section 56 – Law 3764 (amended text of the law 1979)


The taxes levied hereby shall be apply on the sales made throughout the country in such a way as to keep the tax burden in one stage of the production chain; said taxes shall be paid by the manufacturer; the importer, in the case of imports for consumption, according to the Customs law; the person who divides the product; the person who prepares it, or the people on whose behalf these processes are performed, with the exemptions and in the way established for each tax and according to the provisions set forth by the Executive Power.

Section 56 – Law 3764 (amended text of the law 1979)

Taxable amount:

The taxable amount is the net sale price paid to the taxable person, except in the case of cigarettes where the taxable amount is the sale price paid by the final consumer. The term “net sale price” means the final price after deducting the discounts, interests and VAT.

Section 4 – Law 24674

In the case of imports, the taxable base will be the 130% of the amount resulting from the addition of the taxable base for custom duties plus any tax applied on the transaction, except for VAT.

When the imported taxable products are sold, the importer can take the tax credit charged on the sale, that results from the tax previously paid on the import.

Section 7 – Law 24674


Tax rates::

Tobacco

 
Cigarettes 60%
Others 16% - 20%
Alcoholic drinks 12% - 20%
a) Whisky 20%
b) Cognac, brandy, gin, pisco, tequila, vodka or rum 20%

c) According to their alcoholic level, excluding products indicated in a) and b):

Class 1, from 10° to 29 and fractions 20%
Class 2 30%
and more 20%.
Champagne 12%
Beer 8%
Soft drinks, syrups and liquors 8%
Automobiles and diesel motors 10%
Luxury goods 20%
Ships and aircrafts 4% to 8% (according to their value).



Assessment and collection:

The tax resulting from the application of the provisions herein stated shall be paid every calendar month on the basis of the affidavit performed in an official form.
In the case of cigarette manufacturers settled in tobacco areas established by the DIRECCIÓN GENERAL IMPOSITIVA, the terms established for the payment of the tax corresponding to products released from the factory shall be extended in a general and automatic way up to twenty (20) consecutive days by such agency.

Section 13 - 24674 Act




Treatment of exports:

For the purposes of this law, taxed national products shall be exempted from taxes, as long as there is no taxable event, when they are exported or incorporated to the list of “ship supplies” of international ships or airlines, on the condition that the cargo is supplied in the last stop in national soil, or otherwise, travel to such destination as “controlled goods.”
In the case of products which, having caused the taxable event, are aimed at exports or at the aforementioned “ship lists”, the tax shall be refunded or credited as long as the exit of the country is duly evidenced and, given the case, the fiscal instrument that evidences the tax payment may be invalidated.
In case of exported goods containing national inputs which have been subjected to tax, a credit of the tax paid will be granted as long as evidence thereof can be provided.
For the purposes of the previous paragraph, “inputs” mean all taxed products, in any stage of the production chain, that are part of the final product, whether transformed or not.

Section 10 - 24.674 Act


Insurance activity

Insurance companies legally registered or incorporated in the country shall pay an 8.50% tax (eight point five percent) on the insurance premiums, except in the case of labor accidents insurance which shall pay 2.5% (two point five percent).
Insurance contracts on people, except life insurance contracts (individual or collective) and personal accident insurance contracts, and insurance contracts on goods, personal property, real estate or livestock in the country or with such destination, granted by insurance companies settled abroad shall pay 23% tax (twenty three percent) on the general risks policies.
The tax for each insurance contract mentioned in the previous paragraph must be paid at the dates when the premiums are payable; for such purpose, an exact copy of the contract shall be filed to the Dirección General Impositiva stating the beneficiary's address, who must inform any change thereof.
Agricultural insurances, life insurances (individual or collective), insurances on personal and collective accidents that cover expenses for admission into a hospital, surgery or maternity, are exempt from the tax established in sections 65 and 66.
Section 65 through 68 - 3764 Act (T.O. 1979)



Cellular and satellite telephone services:

A FOUR PERCENT (4%) TAX is levied on the amount billed for the rendering of services of cellular and satellite phones to the user.
The sale of prepaid and/or rechargeable cards used to render the services of cellular and satellite telephones shall also be subject to such tax.
The taxable event occurs when the corresponding bills and/or sale or recharge of cards are due and those who render the taxable service are taxable individuals.
Section 30 through 32 - 24674 Act









Liquid Fuel and Natural Gas Taxes


A tax is levied on the transfer, whether on an onerous or free basis, of local or imported goods in the territory of the nation so that it is only applied in one stage of the production chain. It applies on gasoline with or without lead, natural and virgin gasoline, solvent and oil of turpentine, gas-oil, diesel oil, kerosene and natural gas for use in automobiles.
Products consumed by the taxable person shall also be taxable, except for those used exclusively as fuel in the production processes and/or manufacture of hydrocarbons and their by-products.
The exemption referred to in the previous paragraph shall also be applied when the products are used by the registered individual for the manufacture of other taxable products.

Section 1, 4 and 10 - 23966 Act (T.O. 1998)




Chargeable event:

A chargeable event occurs:

a) Upon the delivery of the good, issuance of bill or equivalent action, whichever happens first.
b) In the case of products used by the taxpayers themselves, upon the withdrawal of the fuels for consumption.
c) In cases of carriers, bailees, owners or holders of taxed products that have no documents to prove that such products have paid the tax pursuant to this law or that are comprised within the exemptions thereof, upon evidence of possession of the products.
In the case of imported products, the individuals that enter them into the country, whether taxable or not for the purposes of this law, must make a tax down payment upon shipment to destination. The balance shall be paid together with customs duties and value added tax, in the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS, autarchic entity of the TREASURY DEPARTMENT. The applicable rate shall be the one in force at the time.



Section 3 and 7 - 23966 Act (T.O. 1998)


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


a) Any person who performs the imports.
b) Companies that refine or trade liquid fuels and/or other hydrocarbon by-products.
c) Companies that produce, elaborate, manufacture or obtain taxed products directly or from third parties.
d) In the case of liquefied gas used in automobiles, the owners of fuel outlets and owners of fuel storage for private use, registered in the Register as set forth in the Resolution of the former ENERGY BUREAU No. 79, dated March 9th, 1999, authorized to trade liquefied gas pursuant to technical, safety and economic standards that rule the activity, shall be taxable individuals.
In cases of carriers, bailees, owners or holders of taxed products that have no documents to prove that such products have paid the tax pursuant to this law or that are comprised within the exemptions thereof, shall be taxable on such products notwithstanding the penalties provided by law or the responsibility of other individuals participating in the infringement thereto.

Section 3 - 23966 Act (T.O. 1998)







Assessment and collection of taxes


Tax return and administrative payment of taxes:

The assessment and collection of taxes made according to the provisions of Law, shall be based on tax returns filed by the taxpayers under the terms and conditions stated by the Federal Administration of Public Revenue. When said agency considers it necessary, this obligation may also apply to the third parties that participate in the transactions of the taxpayers and which are linked to taxable events according to the laws.

Section 11 – Law 11683 (amended text of the law 1998)

The tax return is subject to administrative review and, notwithstanding the tax paid or assessed, the Federal Administration of Public Revenue considers that the deponent is liable for the resulting tax, which amount cannot be reduced due to other tax returns, except when there has been a miscalculation. The deponent shall also be liable for the accuracy of the information included in the return and he will not be discharged from his obligation by submitting another return, although not requested.

Section 13 through 15 – Law 11683 (amended text of the law 1998)

Official tax assessment

When the taxpayer does not submit tax returns or when a return is challenged, the Federal Administration of Public Revenue shall officially assess the tax base or the tax loss, as the case may be, and shall estimate the corresponding tax, whether directly if based on accurate information or through estimation, if there is not enough information.

The tax assessments performed by inspectors and other employees that control the taxes, are not administrative decisions, because said decisions are exclusive powers of the officials that act as administrative judges.

Section 16 through 19 – Law 11683 (amended text of the law 1998)



Judicial Review

Individuals who infringe tax laws can appeal resolutions that impose penalties or that assess taxes in an accurate or estimated way, or claim a refund in cases authorized by law where the taxes have already been paid, by filing within FIFTEEN (15) days after receiving written notice thereof the following claims:

a) Appeal to a court requesting the reversal of its own decision
b) Appeal before the pertinent NATIONAL TAX COURT, when possible.

Appeal pursuant to subsection a) shall be filed before the same authority that issued the corresponding resolution, by submitting the pertinent document or by mailing it by means of a registered letter with receipt requested; and the appeal pursuant to subsection b) shall be notified by the same means.
The appeal pursuant to subsection b) may not be filed in relation to advanced payments and other payments on account, their updates and interests. Likewise, such remedy shall not be filed in relation to payment of updates and interests when the tax origin is not under discussion.
Section 76 through 80 - 11683 Act (t.o. 1998)

The ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS shall have full powers to review at any time, even regarding current fiscal periods, through its officials and employees, the compliance of taxpayers with laws, regulations, resolutions and administrative instructions, supervising the situation of any alleged liable party.

Section 35 and 36 - 11683 Act (t.o. 1998)






Interest, Illegalities and Penalties

Interests

Total or partial failure to pay taxes, to deposit taxes withheld, collected, advanced payments and other payments on account, shall accrue a default interest as from the corresponding due dates, without prior notification.
Section 37 - 11683 Act (t.o. 1998) 1998)

Formal infractions - Penalties

A taxpayer who fails to submit his return within the period established by the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS, is subject to a fine, without prior notice, of TWO HUNDRED PESOS ($200), increased to FOUR HUNDRED PESOS ($ 400) in case of partnerships, associations or entities of any kind organized in the country or businesses organized as permanent companies, of any kind or with any purpose, owned by natural or artificial persons, domiciled, organized or settled abroad.
Section 38 - 11683 Act (t.o. 1998)

Violation of the provisions herein stated, of the pertinent tax laws, of the regulatory orders and of any other compulsory rule that establishes or requires compliance with formal duties to determine a tax obligation and to review or control compliance by taxpayers shall be punishable by fines from ONE HUNDRED AND FIFTY PESOS ($ 150) to TWO THOUSAND AND FIVE HUNDRED PESOS ($ 2.500).

In case of the following cases of non-compliance, the fine set forth in the first paragraph of the section hereof shall range from the minimum to the maximum amounts therein stated up to the maximum amount of FORTY FIVE THOUSAND PESOS ($ 45.000):

Infringements to the rules to settle legal domicile set forth in the law, in the regulatory order or in complementary regulations set forth by the Administración Federal de Ingresos Públicos in relation thereto.
Obstruction to any inspection on the part of the taxpayer, consisting on the repetitive non- compliance with the requirements of intervening officials, as long as these are not excessive regarding the information and form requested, and as long as the taxpayer has been granted with the term stated by the Law of Administrative Procedures for his reply.
Failure to give details required by the Administración Federal de Ingresos Públicos for the surveillance of international operations.
Failure to keep receipts and vouchers to evidence prices agreed upon in international operations.

In all aforementioned cases of non-compliance, the fee to be applied shall be regulated according to the taxpayer's condition and the seriousness of the infringement."

Section 39 - 11683 Act (t.o. 1998)


Closure

A fine from THREE HUNDRED PESOS ($ 300) to THIRTY THOUSAND PESOS ($ 30.000) and closure from THREE (3) to TEN (10) days of the business, premises, office, industrial, agricultural and livestock breeding, or services facilities, as long as the value of the goods and/or services involved exceeds TEN PESOS ($ 10) shall be applicable on individuals who:

a) Do not issue bills or similar receipts for one or more commercial, industrial, agricultural and livestock breeding, or services operations performed pursuant to the procedure, requisites, and conditions established by the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS.
b) Do not keep record of their purchases of goods or services or sales thereof, or industrialization services, or if they did, these were incomplete or defective, failing to comply with the procedures, requirements and conditions set forth by the Administración Federal de Ingresos Públicos.
c) Order or commercially transport goods, even if they are not their own, without the documents required by the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS.
d) Are not registered as taxpayers or responsible individuals before the ADMINISTRACIÓN FEDERAL DE INGRESOS PÚBLICOS when they were obliged to.
e) Fail to keep bills or vouchers to evidence the purchase or ownership of goods and/or services necessary to develop the pertinent activity.
f) Do not have or keep in the appropriate functioning conditions or do not use production measurement and control instruments as provided by laws, regulatory orders set forth by the national Executive Power and any other compulsory rule, in order to facilitate the review and control of taxes by the Administración Federal de Ingresos Públicos.

Section 40 through 44 - 11683 Act (t.o. 1998)


Tax Omission - Penalties

Any taxpayer who fails to submit his return or submits inaccurate returns is subject to a fine between fifty percent (50%) and one hundred percent (100%) on the amount of the tax omitted, not withheld or timely collected, as long as section 46 is not applicable and there is no justifiable error. The same penalty shall be applied on withholding agents that omit acting as such.
Individuals who fail to file tax returns, payments or other documents, or file inaccurate tax returns, or omit them and/or fail to pay taxes on account or taxes advancements shall be subject to the same penalty.

The omission referred to in the first paragraph shall be punished with a fine of ONE (1) to FOUR (4) times the unpaid tax when said tax results from transactions between local partnerships, companies, trusts or permanent businesses settled in the country with natural, artificial persons or any other entity domiciled, organized or settled abroad. The penalty for non-compliance shall be assessed pursuant to the taxpayer compliance of formal obligations stated by Administración Federal de Ingresos Públicos for the control of tax obligations compliance derived from international transactions.

Section 45 - 11683 Act (t.o. 1998)


Tax Fraud - Penalties

Individuals who through fraudulent tax returns or malicious concealment, by action or omission, perform fiscal fraud shall be fined with TWO (2) to TEN (10) times the evaded tax amount.

Section 46 through 48 - 11683 Act (t.o. 1998)






Statutory Period
The powers of the Treasury to assess and request the payment of the taxes stated, herein and to apply and enforce fines and closures, shall become void:

a) After FIVE (5) years for registered taxpayers and for non-registered taxpayers who are not required to be registered at the Federal Administration of Public Revenue or who regularize their situation after being required to do so and in case of non-compliance
b) After TEN (10) years in the case of non-registered taxpayers
c) After FIVE (5) years that the tax credits unduly credited, returned or transferred, as from January 1st of the following year, were credited, returned or transferred
Because doubling of tax becomes invalid after FIVE (5) years
Because actions to request the refund of taxes shall no longer be valid after FIVE (5) years. The period shall be considered as from January 1st of the year following the due date of the request.

Section 56-69 – Law 11683 (amended text of the law 1998)




Judicial Review

Whenever a sum above TWO HUNDRED PESOS ($ 200) is under dispute, the individual may file a complaint against the national Treasury before the pertinent National Judge:


a) Against adverse decisions in relation to fines.
b)

Against adverse decisions to claim a refund in cases where taxes have already been paid or review of an adverse decision.

c) When no administrative resolution is set forth within the terms provided by the law in the case of administrative investigations or claims for taxes that have already been paid.

In the cases set forth in a) and b), the complaint shall be filed within FIFTEEN (15) days from the notice of the administrative resolution.

Section 82 through 91 - 11683 Act (t.o. 1998)




MAIN TAXES IMPOSED BY THE GOVERNMENTAL LEVELS
 

The Federal Government imposes the following taxes: income tax, minimum income tax, property tax, natural real estate conveyance tax, taxes on paid interests, corporate debt financing taxes, value added tax, internal tax, liquid fuel and natural gas taxes, social security regime tax, Customs duties, among others

 
The Provincial Government imposes the following taxes: gross receipts tax, partial statement tax (real property and vehicles), stamp tax and self-employment taxes
 
The Municipal Government imposes the following taxes: self-employment taxes and specific taxes.
 
 
 
 
 
 

AFIP Museum
 
The AFIP museum is located at Hipólito Yrigoyen 370, in the City of Buenos Aires. It includes the history of the Tax Administration through objects and documents keept, researched and revealed. There is a display of old and new elements, documents and files that include names, dates and places.

Among the collections, there are original tax payment records from the 19th Century and Customs documents from mid-1800s. Japan, Israel, Belgium and Germany are the only countries of the world that created a tax museum like us. GUIDED TOURS: There are guided tours for groups from schools
 
We offer guided tours for groups from primary and high schools. To make an appointment, please call 4347-2396/2315 or send an e-mail to museo@afip.gov.ar Visiting hours: working days from Monday through Friday from 11 a.m. to 5 p.m
 
Visiting hours: working days from Monday through Friday from 11 a.m. to 5 p.m.
Free admission.
Entrance through Hipólito Yrigoyen 370
 
Location
 
Location: The AFIP Museum is located at the first floor of the Headquarters (Hipólito Yrigoyen 370, Autonomous City of Buenos Aires), just in front of Plaza de Mayo, the historic center of the city. The building has a rationalist style; it was built by architects R. Fitte and H. Morelli from 1951 to 1966.
Por This concrete structure covered in marble occupies the whole block and it is near the San Francisco Church (the Church is located in the adjoining street).
The building is also known because it had another building of smaller size but of great historic importance: the old National Congress. Currently, the Museum is in front of Plaza de Mayo so that it can be included in the tour of the Historic Center of the City of Buenos Aires
 
GALLERIES
 
Room 1: Origins of the institution.
  We have a summary of the DGI (Taxes), DGA (Customs) and DGRSS (Social Security) integration. We also mention some Directors of each agency. There is a display some of their stamps, documents and personal objects
 
Room 2: Customs General Directorate.
  There are recovered trunks and suitcases that have once passed through the Customs. There are several pictures of Customs facilities and import and export objects from different periods
 
Room 3: Tax General Directorate.
  We go back to colonial times: we cover the Independence and civil war periods up to the year 1891. In this room there is an exhibition of the evolution of the tax collection and the control mechanisms applied in our country

There is an exhibition of documents of great historic importance that show the relation between taxes and national sovereignty. There are some examples of evasion, smuggling and forgery.
 
Room 4: Social Security.
  There is an exhibition of the objects used in the offices in 1930, time when primitive mechanization started: old printers, a mimeograph and even a writing-desk that hides a trap

In addition, there are devices that show the working relationships of old times, as an introduction to tackle the origin of the so called Social Security
 
Transportation means
 
Buses:
  29, 56, 28, 64, 86, 91,105, 126
 
Subway:
  Line A (“Plaza de Mayo” station),
  Line D (“Catedral” station) and
  Line E (“Bolivar” station).