Doing Business in Argentina: A guide that explains the specifications to bear in mind when doing business in our country.  

March, 2008 -



The Republic of Argentina has three levels of Government (Jurisdictions): Nation, Provinces and Municipalities.

The government system of the Nation and the Provinces has three powers: The Executive that deals with the Administration, the Legislative in charge of passing the Laws, and the Judiciary responsible for the Administration of Justice.

On the other hand, the Municipalities have an administrative power –the Mayor’s Office- and a legislative power –the Deliberative Board- but do not have their own Administration of Justice.


The tax powers of these three levels of Government are as follows:

1. Nation.

1.1. On an exclusive and permanent basis: Customs duties.
1.2. Concurrently with the Provinces and on a permanent basis: Indirect taxes.
1.3. Concurrently with the Provinces and on a temporary basis: Direct taxes.

2. Provinces.

Concurrently with the Nation and on a permanent basis: Direct and indirect taxes.

3. Municipalities.

3.1. Have the tax power afforded by the jurisdiction from which they depend.

In 1994 there was a reform of the National Constitution, with the new text maintaining the tax powers such jurisdictions had in the prior text.


Given the overlapping of the tax competitions and in order to share the national tax collection with the Provinces and the City of Buenos Aires and to overcome internal double or multiple taxation problems, two inter-jurisdictional agreements have been entered: one among the Nation, the Provinces and the City of Buenos Aires (Co-participation of National Taxes ) and another between the Provinces and the City of Buenos Aires (Multilateral Agreement).


In order to avoid international double or multiple taxation problems, agreements have been signed with the following countries:

A) General agreement with Sweden, Germany, Bolivia, France, Brazil, Austria, Italy, Chile, Spain, Canada, Finland, the United Kingdom of Great Britain and North Ireland, Belgium, Denmark, the Netherlands, Australia, Norway, Switzerland.

B) With respect to international transportation with Belgium, Greece, Canada, Denmark, Finland, France, Italy, Great Britain, Norway, Peru, Portugal, the Netherlands, Sweden, Switzerland, Yugoslavia, Chile, the US, Uruguay, Japan, Ecuador, Spain, Germany, Cuba, Israel, Russia, Poland, Colombia, Brazil, Iran, Venezuela, Paraguay and Malaysia.

At present, and as a result of the MERCOSUR, the Republic of Argentina is devoted to harmonizing taxes with the other member States (Brazil, Uruguay and Paraguay). Chile and Bolivia have recently joined the MERCOSUR (in part).


This summary does not include certain taxes of a specific nature such as, for instance, those on oil derived liquid fuels, natural compressed gas, the generation and distribution of electric power, etc.


The current legislation consistently applies all over the country. There are, however, tax promotion regimes in certain Provinces, Regions and Economic Sectors.

1.1. Income Tax.

1.1.1. Subject of the tax and application.

This applies to the worldwide revenues or benefits of the companies and individuals residing in the country as well as the revenues obtained in the country by beneficiaries residing abroad.

For the residents that assess their liability incorporating revenues obtained abroad, they admit the fiscal computation for taxes paid abroad up to the limit of the increase of the liability resulting from the incorporation of such revenues.

1.1.2. Taxable basis. For residents.

The taxable basis for taxpayers residing in the country is assessed by subtracting from the income the costs and expenses necessary to obtain, maintain and preserve such revenue. For non-residents.

The taxable basis for foreign beneficiaries that obtain revenues from Argentine sources is a presumption of revenue, as described in Annex I hereof.

1.1.3. Thin Capitalization and transfer pricing.

There are restrictions for the tax deduction of the interest derived from debts incurred by companies with non-residents controlling them.

The relations of the branches and affiliates with their parent company and other related companies are governed by the arm’s length principle.

1.1.4. Treatment of losses.

The losses of one year may be carried forward up to the fifth subsequent year.

There are limitations to the computation of net losses both from the sale of shares and other corporate equities, and from those originated abroad.

1.1.5. Treatment of dividends.

The dividends distributed by local companies, whichever the beneficiary thereof, are exempted from this tax unless the book income distributed is higher than the tax income.

1.1.6. Tax rates. For companies.

The tax rate either for local companies, for foreign beneficiaries and for stable establishments belonging to the latter amounts to 35%. For individuals.

The individuals residing in the country benefit from deductions as non-taxable income, revenues “earned” and family dependents. Such deductions are reduced according to the amount of the total revenue.

A sliding scale is applied on the revenue value, net of deductions, that starts at 9% and asymptotically reaches 35%.

1.1.7. Fiscal period and payment of the tax. For residents.

The tax is paid per fiscal year, which coincides with the business or calendar year, depending on whether the taxpayer prepares business balance sheets or not. For non-residents.

In the case of foreign beneficiaries, the payment of the tax is made definitively through a withholding at the source made at the time of drawing out the funds abroad.

1.2. Minimum Presumptive Income Tax.

1.2.1. Subject of the tax, application and taxable basis.

The tax levies the corporate assets located in the country or abroad and the rural properties belonging to individuals or undivided estates, valued according to the legal provisions. Liabilities are not deductible.

1.2.2. Special taxable basis.

For the tax purposes, the following taxable basis shall be taken into account:

 Financial entities, insurance companies and leasing companies: 20% of the assets levied.

 Consignees of cattle, fruits and products of the country: 40% of the assets assigned, on an exclusive basis, to the consignment activity and 100% with respect to the other assets.

1.2.3. Exempted and non-computable properties.

The following properties are exempted from the tax:

 shares and other equities in companies subject to the tax.

 trust units in mutual investment funds provided that they comprise public offering securities, precious metals, currencies, rights and obligations derived from forward agreements and options, instruments issued by financial entities and money.

 The properties of the assets levied in the country, the value of which, as a whole, shall not exceed $ 200,000. If such amount is exceeded, the tax shall apply over the entire assets.

The following shall not be computable for the calculation of the tax:

 Personal property subject to amortization, except vehicles, of a first use, in the year of acquisition and in the next.

 The value of investments in the construction of new buildings or improvements, in the year of investment and in the next.

1.2.4. Tax rate.

The tax rate amounts to 1% per annum, but the following considerations must be taken into account:

 The income tax assessed for the fiscal year upon which the minimum presumptive income tax is being assessed may be computed as payment on account of the latter. The excess of income tax shall not generate a balance in favor of the taxpayer.

 If the income tax is insufficient to absorb the minimum presumptive income tax, the payment made for the latter may be computed as a payment on account of the income tax in any of the following next ten fiscal years, always provided that there is in such periods an excess of the income tax with respect to the minimum presumptive income tax up to the value of the aforementioned excess.

In the case of real estate not assigned to the company’s business (investments, etc.):

 The minimum of $ 200,000 is not computable.

 The resulting tax is not cancelled against the income tax assessed for the fiscal year for which the minimum presumptive income tax is being assessed.

1.3. Personal Assets Tax.

1.3.1. Subject of the tax, application and taxable basis.

The tax applies to:

 All property individuals may own as of December 31 each year, except rural properties subject to the Minimum Presumptive Income tax and the shares and other equities in the net worth of the companies.

 Non-exploited real estate or real estate assigned to lease, recreation or holiday resort ownership, as of December 31 of each year, by companies organized abroad.

 Negotiable obligations and trust units from mutual investment funds belonging to companies organized in tax havens.

 Shares and other equities in the net worth of commercial companies, the holders of which are individuals and/or undivided estates domiciled in the country or abroad and/or companies and/or any other kind of legal entity domiciled abroad.

This tax admits the computation of fiscal credit for taxes paid in other countries up to the limit of the increase of the obligation generated by the incorporation of the properties therein located.

1.3.2. Passive subjects and parties responsible for the debt of others.

The following are subject to the tax:

 The residents in the country, for all their properties regardless of their location;
 The representatives of the residents abroad, for the properties of their represented parties, located in the country;

 The companies with respect to the shares and other equities in the net worth of commercial companies.

1.3.3. Tax rates.

 1.5% for:
real estate owned by companies organized abroad
negotiable obligations and trust units of mutual investment funds belonging to companies organized in tax havens.

 0.75% for the rest of the properties in the country belonging to residents abroad.

 The properties belonging to residents in the country are levied pursuant to the following scale:

Total value of the properties subject to tax Rates on the excess of $ 102,300
Up to 200,000 0.50%
More than 200,000 0.75%

 The shares and other equities in the net worth of commercial companies have a rate of 0.50%.

Local residents have a non-taxable minimum of $ 102,300. Non residents shall not be subject to tax if it does not exceed the amount of $ 250 approximately.

1.4. Value Added Tax (VAT).

1.4.1. Subject of the tax and taxable basis.

This is a sales, multiple phased and non-cumulative tax, that levies the added value for each of the production and marketing stages of goods and services.

It is structured as a charge that arises from settling tax against tax through the financial application of the fiscal credit, even for the one resulting from the acquisition of property, plant and equipment.

The personal property, the works, the leases (even the lease of real estate) and the provisions of services rendered in the territory of the Nation are subject to the tax. On the other hand, the disposal of real estate, except for the sale of the works carried out on own property are exempted from the tax.

With respect to the treatment of the international trade, this tax has adopted the criteria of taxation in the country of destination, which implies the border fiscal adjustment that translates into:

 Levying the final imports of personal property and the provision of services rendered abroad and gainfully used in the country.
 Exempt the final exports of personal property and the provision of services rendered abroad, gainfully used abroad. This exemption includes the return of the local tax paid for the inputs used in the production of the personal property and the services “exported”.

1.4.2. Tax rates.

The general tax rate amounts to 21%, and there is:

 A differential rate of 27% for the sale of gas, electric power, running water, telecommunication services, sewer and drainage services, always provided that they are used in production stages.

 A differential rate of 10.50% that applies, among others, to the following activities:

 Primary production of:

- Live cows and sheep.
- Fruits and vegetables, fresh, cooled or frozen, not submitted to actual cooking or manufacture processes.
- Grains –cereals and oil seeds, excluding rice- and dry vegetables –beans, green peas and lentils.
- Meats and edible wastes from cows and sheep, fresh, cooled or frozen, not submitted to actual cooking or manufacture processes.
- Honey from bees in bulk.
- Leather from cows, either fresh or salted, whitewashed, picketed or otherwise preserved but not tanned, parched or otherwise prepared, including depilated or divided.

 Cultivation works (preparation, plough, etc., of the soil), sowing and/or planting, application of agrochemicals, fertilizers and their application and harvest of the three first primary productions described above.

 Construction of works on real estate owned by third parties used for housing.

 Construction of works on own real estate used for housing made by building companies.

 Bank interests and commissions originated from loans granted by:

- Financial entities governed by the respective law.
- Bank entities settled in countries of which the Central Banks have adopted the international standards of bank supervision established by the Basel Bank Committee.

 The sales, leases and imports of certain specifically determined property, plant and equipment.

 The income from the sale of journals, magazines and periodical publications issued by small and medium businesses when non-exempted and the income from advertising in such media.

 Public transportation of passengers for more than 100 kilometers (public transportation of passengers for less than 100 kilometers is exempted).

 The services of sanitary, medical and paramedical assistance provided by cooperatives, mutuals or pre-paid medicine companies that are not exempted.

1.4.3. Fiscal period.

In most cases the tax is paid per fiscal year, which coincides with the calendar month. Rural producers may opt for an annual fiscal year.

1.5. Internal Taxes.

1.5.1. Subject of the tax and taxable basis.

This is a mono-phase sales tax applicable at the producing stage and to the import of the following goods and services: tobacco, alcoholic beverages, beers, non-alcoholic beverages, syrups, extracts and concentrates, gas oil motorcars and engines, mobile and satellite telephone services, champagne, luxury goods, motorcars and engines, recreation or sport boats, aircraft and certain electronic devices specifically described in the legal regulations.

1.5.2. Tax rates and fiscal period.

There are different tax rates pursuant to the good or service subject to tax. The tax is payable per fiscal year, which coincides with the calendar year.

1.6. Taxes on Bank Debits and Credits.

1.6.1. Subject to the tax and taxable basis.

The following are subject to the tax:

 The debits and credits in the bank current accounts.

 Certain transactions not using a bank current account carried out by financial entities.

 All movements or delivery of funds owned or belonging to third parties that any person may make on its own account or on the account of third parties.

1.6.2. Tax rates.

The tax rates are as follows:

 Debits on bank current accounts: 6 per thousand
 Credits on bank current accounts: 6 per thousand
 For the rest of the transactions: 12 per thousand

This tax may be computed as credit of the income tax and/or the minimum presumptive income tax on the following proportions:

 For transactions subject to 6%, 34% of the tax on debits and credits resulting from credits in bank accounts .

 For transactions subject to 12%, 17% of the tax on debits and credits.

1.7. Simplified regime for small taxpayers (RS).

This is a simplified regime for VAT, income tax and the Social Security System destined to small taxpayers that are exempted from VAT and from income tax.

Small taxpayers include:

 Individuals and undivided estates as continuators.

 Joint ventures and irregular partnerships of up to 3 partners, always provided that all partners
shall meet the conditions to be small taxpayers.

To the extent that they meet the following conditions:

 That the turnover tax for the last annual period shall not be higher than $ 72,000, in the case of leases and/or provision of services, and $ 144,000 for the rest of the activities.

 That they shall not exceed the maximum parameters referred to the surface covered and kW consumed per annum stated for their categorization.

 In the case of sale of personal property the maximum sale price per unit may not exceed the sum of $ 870.

 The taxpayers of the Simplified Regime may not import personal property and/or services.

 In the case of companies comprised within the Simplified Regime, both the company and each of its partners must meet the conditions to enter the Simplified Regime.

 The Simplified Regime does not comprise the income from services and financial investments, the purchase and sale of securities and of interests in the income of any company not included in the Simplified Regime.

The sections of the scales established and the taxes derived thereof are shown in Annex II hereof.


These are independently legislated for each of the Provinces and for the City of Buenos Aires. They are:

2.1. Turnover Tax.

This is a multiple phase and cumulative tax that levies the sales of properties and the provisions of services. Generally, the legislation from each jurisdiction differs only with respect to the tax rates. The exports are exempted from this tax.

It is payable for calendar year, with monthly and bimonthly advances, as provided by each jurisdiction.

2.2. Real Estate Tax.

This is a real tax that levies the urban and rural property, regardless of the legal status of the owners thereof. Both the taxable basis and the rates are fixed by each of the jurisdictions. The tax is paid per calendar year with monthly and bimonthly advances, as provided by each jurisdiction.

2.3. Tax on the fleet of motorcars and the settlement of vehicles.

This is a real tax that levies the ownership of such properties, regardless of the legal status of the owners thereof. Both the taxable basis and the rates of the tax are fixed by each of the jurisdictions. The tax is paid per calendar year with monthly and bimonthly advances, as provided by each jurisdiction.

2.4. Municipal Charges (non collected by the City of Buenos Aires).

Most municipalities do not charge their own taxes. They charge, instead, compensatory rates for services that, in general, are not related to their costs but serve to finance such level of government. The main features of such rates are:

2.4.1. Safety and Hygiene Charge.
This charge generally levies the amount of turnover tax obtained by the taxpayer.

2.4.2. Charge for the preservation of the municipal road network.
This charge usually levies the value of rural properties located in the Municipality.

2.4.3. Lightning, sweeping and cleaning charge.
It is similar to the one described under 2.4.2 but applies on urban properties.



Treatment of the benefits drawn to residents abroad

Concept Net income
(a) Actual rate
(b) Grossing-up
1. Transfer of technology agreements governed by such law
1.1. Technical assistance, engineering or consulting services non-obtainable in the country, up to the amounts recorded with the INPI.
1.2. Assignment of rights or licenses (exploitation of letters patent).







2. Copyright for authors and artists residing abroad 35% 12.25 13,960

3. Interest from credits
3.1. Paid by financial entities for deposits in savings account, special savings account, time deposits or bank acceptances.
3.2. For the other interest, see detail below.




4. Salaries and fees derived from personal activities 70% 24.50 32,450

5. Lease of personal property 40% 14.00 16,279

6. Leases and rentals from real estate 60% (*) 21.00 26,582

7. Transfer for valuable consideration 50% (*) 17.50 21,212

8. Other income 90% 31.50 45,985

9. Dividends Exempted (d)

(a) Legal presumption that does not admit evidence to the contrary, except for the revenues shown with (*).
(b) It amounts to 35% of the presumption of the net income.
(c) It is the actual rate when the local user assumes the tax from the foreign beneficiary. It arises from the following calculation:
(100/( 1 - TE )) - 100
Where TE = actual rate expressed as so much by one
(d) Always provided that the book income shall not exceed the tax income.

3.2. List of withholdings on other interests from credits

Foreign creditor
Domestic debtor Tax to be withheld
(as % of the interests)
Actual rate Rate with grossing-up
Any (1) (2) (3) 15.05 17.72
(4) Any 15.05 17.72
Any except for (4) Any except for (1) (2) and (3) 35.00 53.85

(1) Financial entities including funds taken under conditions regulated by BCRA.
(2) Financing of imports of personal property except for motorcars.
(3) Registered bonds issued by countries with reciprocity relations implemented.
(4) Financial entities not domiciled in tax havens or in countries with which Argentina shall have signed agreements to avoid evasion that prevent furnishing information and to the extent they were regulated by their central banks.



The Argentine labor legislation is primarily governed by Law 20.744 – Contract of Employment Law (CEL) that establishes a general framework that regulates the relationships between employers and employees setting forth a minimum floor of rights and obligations that may only be altered by a regulation (other laws, professional statutes, collective agreements) or by the will of the parties or uses and practices more beneficial for the worker.

The Argentine laws have been amended at different opportunities and are continuously amended in certain parts thereof, particularly aspects related to times, calculations and percentages. Consequently, it is of the utmost importance to know the extent and effectiveness of each law at the time of staff-related decision making.

In an attempt to summarize the labor legislation we list the main regulations below:

• Contract of Employment Law (CEL) (Law 20.744).
• Promotion of Employment Law (Law 25.877).
• Family Allowances (Law 24.714).
• Occupational Hazards Law (Law 24.557).
• Social Welfare Fund (Law 23.660).
• Integrated System of Pensions and Retirements (Law 24.241).
• And their respective Decrees, Resolutions and amendments.

On the other hand, the Collective Bargaining Agreements mainly modify the application of the Contract of Employment Law. As the changes vary from one agreement to the other, we shall not consider the subject in this summary.


In Argentina every person who provides services or executes works in favor of another or depends on it, during a determined or undetermined period of time, through the payment of remuneration, under pre-fixed fees and obeying orders is presumed to be under full-time employment.

The existence of a written agreement is not a requirement for the hiring of staff for undetermined time although a specific process of registration with public agencies must be complied with.

According to Law 20744 LCT, Contract of Employment means the one entered into for an undetermined time, except:

• that the life of the agreement is expressly stated in writing;
• that the modalities of the task or activity shall so justify.

The Contract for Undetermined Time does not require to enter it in writing and it is understood entered “on trial” during the first three months.

List of the existing Hiring types:

Contract for an Undetermined Time with a Trial Period

• The same worker may not be hired more than once.
• Obligation of the Employer to register the worker (receipt/legal book).
• All the dues and contributions are paid to the Social Security.
• The employee is entitled to benefits for accident/blameless illness and for occupational accident.
• The trial period is computed as service time to all effects.
• Both parties may terminate the agreement during the trial period, without giving a cause, without compensation, but with the obligation to give prior notice.

Fixed-Term Contract of Employment

• Does not have a trial period.
• It must be in writing, contain cause and termination of its origin.
• It may be entered for a term of up to 5 years, is renewable for terms equal or different from those anticipated.
• It pays the total percentages of dues and contributions in force to the Social Security.
• Obligation of the employer to give prior notice no less than 1 month or no more than 2 months in advance. Otherwise, it becomes Undetermined Term.
• The failure to give prior notice gives right to the payment of compensation in contracts longer than one month.
• The termination prior to expiry gives right to statutory compensation plus damages for early breach.
• Termination upon expiry, with prior notice, contract fulfilled for 1 year or more, gives right to the payment of compensation (article 250, Contract of Employment Law).

Seasonal Contract of Employment

• This manner of hiring is for an undetermined time.
• It exists when the relationship, resulting from the activities inherent to the normal conduct of business, are necessary for certain times of the year only, and are likely to be repeated in each cycle due to the nature of the activity.
• The wrongful dismissal, pending the terms anticipated or expected of the cycle or season, shall give rise to a compensation equivalent to the dismissal without a cause.

Eventual Contract of Employment

• This is entered for extraordinary services determined beforehand or temporary requirements of the company, for which a certain term for the termination of the agreement may not be anticipated.
• The relationship begins and ends with the conclusion of the work, the execution of the act or the provision of the services for which the employee was hired.
• The employer may use this modality by direct hiring or through a company of temporary services.


• This is not a true contract of employment but an education relationship to give practical experience supplementary to the theoretical instruction that qualifies for the exercise of the profession.
• Law 25165, Decree 487/00 regulate the System of Educational In-Service Training by a pattern agreement between a company and the university and later an individual agreement between the student, the company and the university.
• The duration must be of no less than 2 months and no more than 2 years, with a permitted weekly activity of no more than 5 days and a daily timetable of up to 6 hours.
• The company must pay the trainee an incentive compensation that does not pay dues or contributions and must have the regular benefits common to the rest of the staff.
• The trainee must have a workmen’s compensation cover (ART) and it is desirable to include him in the mandatory life insurance policy.


REGISTRATION: Through a computer system called MI SIMPLIFICACION the employer is obliged to report the Additions, Removals and every Modification related to full-time employees.
The Additions must be reported at least 24 hours prior to the date of admission, recording the personal data of the employee, his family dependants, manner of hiring and salary that, if subsequently modified, must be updated.
The Removals of staff must be reported not later than 5 days after occurrence.

STAFF FILES: For each employee, the employer must prepare a folder gathering the documentation related to his dependants. Such information is confidential and must include at least the main documents required for family allowances, registrations with the Social Welfare Fund, life insurance and such documentation as this or other agencies may require in order to support and comply with different legal provisions.

HEALTH SERVICES: when the admission occurs, the employee is informed of the mandatory social welfare fund he may use. This social welfare fund may be union or executive based.
After the admission has been reported, each employee must be registered with the social welfare fund in order to enjoy the benefits.

OCCUPATIONAL ACCIDENTS: the company must have an occupational hazards insurance company that is reported upon the admission of new workers. The cost of the ART is estimated to range between 1% and 3% of the salary plus a fixed monthly amount of $ 0.60 for each employee.
Before the admission of an employee, the employee must undergo a pre-occupational check-up to determine his health condition, which shall be in charge of the company.
The employee must monitor his health from time to time through periodical check-ups in charge of the ART and, upon finishing the employment relationship, he must undergo a post-occupational check-up in charge of the company.
The purpose of these examinations is to prevent professional illnesses.

MANDATORY LIFE INSURANCE: insures an amount of $6,750 per worker. A policy is fixed that includes payment and annual renewal.


Monthly remuneration

The employee receives a gross monthly remuneration subject to the following discounts: employee contributions to social security and discounts for income tax, if appropriate, up to reaching the net salary that must be deposited in a special bank account, with no cost for the employee, prior to the 4th business day of each month.
This calculation must be reflected in a salary receipt of which the employee shall keep a copy signed by the employer, and the employer a copy signed by the employee. This receipt provides evidence of the payment of the monthly remuneration.
Additionally, the employer must carry a special book (article 52, Contract of Employment Law) where it shall monthly record the salaries to be paid to each of his employees. This book must be rubricated by the Ministry of Labor with the full and updated individualization of the employer, name of the worker, marital status, date of admission and departure, remunerations allocated and received, and individualization of family allowances.

The records may not be altered. They may not have blank spaces or spaces between the lines, erasures or amendments or pages removed.

Dues and Contributions

The employer shall file and pay, on a monthly basis, through form F.931 with AFIP (the Argentine Tax Authority) the contributions at its charge together with withholdings (employee’s contributions).

Allocation of dues and contributions Employee’s contribution Employer’s contribution
(1) Rest
Integrated system of retirements and pensions (SIJP) 11% (2)


Family allowances --
Fondo Nacional de empleo (FNE) (National Employment Fund) --
Instituto Nacional de seguridad social para jubilados y pensionados (INSSJP) (National institute of social security for retirees and pensioners) 3%
Solidarity Social Welfare Fund for Redistribution 3% 6%
Total 17% 27% 23%

(1) Employers who shall jointly comply with the following requirements:

 That their main activity be the trade or the provision of services.
 That the total gross invoicing, net of taxes, corresponding to the average of the last three business years shall have been higher than $ 48,000,000.

(2) For employees belonging to any AFJP the percentage amounts to 7%, in force up to December 31, 2007. After January 1, 2008 it shall amount to 11%.

The values of the contributions reduce by 7% if we apply the benefits of Labor Law 25.877 (April 19, 2004) i.e. that they comply with the following requirements:

1. The companies with up to 80 workers that shall have a net increase in their payroll as compared to January 2004, shall have a reduction in the contributions to the social security during 12 months.
2. Except if the increase in the payroll was made through fixed-term agreements or in-service training agreements.
3. Companies with an annual invoicing (average of the last 3 fiscal years) not exceeding the following amounts:

l Agricultural and livestock: 18,240,000
l Industry and Mining: 60,000,000
l Trade: 88,800.00
l Services: 22,440,000
l Building: 24,000,000

The dues and contributions are calculated over the entire remunerations, from a minimum taxable basis of $ 240, up to a maximum of $ 4,800, (ART, and Social Welfare Fund and Contributions under Law 19032).
With respect to contributions to retirement, the current maximum limit amounts to $ 6,000.

After October 1, 2005, it is not required to consider maximum limits on the contributions to the Integrated System of Retirements and Pensions.

The professionals, researchers, scientists and technicians hired abroad to work in Argentina for a period not exceeding 2 years may request the exemption of the dues and contributions to the Integrated System of Retirements and Pensions (SIJP). For so doing it is necessary to have obtained a permanent residence in the country and that the employees are covered against the contingencies of old age, disability and death in their country of nationality or permanent residence.

There are Social Security international treaties for workers that are working outside their usual place of residence. Such treaties permit them to avoid the payment of dues and contributions to the Social Security Systems in the country where they are carrying out their activities, always provided that they are paying such contributions in their countries of origin or residence.

Annual Supplementary Salary

Twice a year, the worker shall receive a supplementary annual salary, equivalent to a month salary payable in two installments: June and December each year.
The calculation basis of the supplementary salary is made by applying 50 % of the highest monthly remuneration accrued for every concept in the six-month period and excludes family allowances, social benefits, supplementary services article 105 Contract of Employment Law, living expenses, evidenced representation expenses, and holiday advances.
It must include: usual and regular bonuses, commissions, variables, holiday plus, additional to the agreement or others arranged by the parties.
The supplementary annual salary is subject to contributions similar to the rest of the salaries, but in this case the minimum taxable base amounts to $ 120 and the maximum to $2,400.

Family Salary

Full-time employees benefit from a subsidy described below. The employers must pay the subsidy to their employees (family allowances) but, since they only contribute 4.44% of the payroll for this subsidy, the excess of the subsidies paid with respect to the contribution is reimbursed to the employers. After November 1, 2007, the payment shall be made directly through the State to the employee’s bank accounts.





From $100 to $ 2,000 From $ 2,000,01 to $ 3,000
From $ 3,000,01 to $ 4,000

Per child Monthly amount per child less than 18 years old. That the child is under the charge of the employee. $ 100

$ 75

$ 50

Per handicapped child Monthly amount per handicapped child with no age limit. That the child is under the charge of the employee after the month when the handicap is evidenced with the employer. $ 400

$ 400

$ 400

Pre-birth Monthly amount from the moment of the conception until birth. Must be evidenced at the third or fourth month of pregnancy and shall require a minimum and continuous length of service of three months. $ 100

$ 75

$ 50

School assistance Monthly amount payable in March each year. For each child regularly attending basic and polymodal teaching establishments. $ 130

$ 130

$ 130

For maternity Monthly amount during the period of statutory leave. Three-month minimum and continuous length of service. The amount the worker should have received during her employment.

For birth Single amount in the month when it is certified. Six-month minimum and continuous length of service. $ 400

$ 400

$ 400

For adoption Single amount in the month when it is certified. Six-month minimum and continuous length of service. $ 2400

$ 2400

$ 2400

For marriage Single amount in the month when it is certified. Six-month minimum and continuous length of service. Both spouses receive it if they are full-time employees. $ 600

$ 600

$ 600

Social benefits

There are remunerations that constitute social benefits and that may be granted by the employers to their employees that are not taken into account for the calculation of the compensations, holidays, supplementary annual balance or for the payment of social security resources. The social benefits include:

• Canteen services at the company;
• Luncheon tickets;
• Food tickets and food baskets up to a maximum ceiling of 20% of the remuneration (10% in the case of workers not comprised within collective bargaining agreements);
• Reimbursements of medication expenses and medical and dentist expenses from the worker and his family;
• Supply of working clothes and any other element related to garments and worker equipment for the exclusive use of his tasks;
• Day care and/or kindergarten expenses used by workers with children of up to (six) years old if the company shall not have those facilities;
• Supply of school materials and pinafores for the children of the worker, provided at the start of the school period;
• Delivery or payment of training or specialization courses or seminars;
• Payment of burial expenses of relatives in charge of the worker.

The different concepts under the name of “Social Benefits”, whether given by the Employer or through third parties in favor of his employees are subject to income tax even if they do not have a remuneratory character for the purpose of the dues and contributions to the National Integrated System of Pensions and Retirements.
The following are excluded:

 Clothes and equipment for exclusive use at the working place.
 Delivery/payment of training/specialization courses indispensable for the performance and development of the career.

On the other hand, the tickets known as basket ticket must pay an employer contribution of 14%, as an exception to the above statements.


Employers are required to give holidays to their employees. The employees must take such holidays between October 1 and April 30 of the following year.
The length of the holidays follows the following scheme:

 14 days if he does not exceed 5 years length of service.
 21 days with a length of service of 5 years and no more than 10 years.
 28 days with a length of service of 10 years and no more than 20 years.
 35 days more than 20 years length of service.

If the employee has not worked for at least the half of the calendar year, they compute 1 day for each 20 days of actual work.
The holidays must be paid in advance (Salary/25 x days of holidays) and afterwards the worker is paid a holiday plus equivalent to the difference between dividing the salary base by 25 and the salary base by 30.


There are also paid leaves that must be granted:

 Birth of child: 2 running days.
 Marriage: 10 running days.
 Death of spouse, children or parents: 3 running days.
 Death of brother/sister: 1 day.
 Sitting for an examination at high school or the university: up to 2 running days per examination. Maximum limit 10 calendar days per year.

It should be noted that the Law protects maternity prohibiting women to work during the 45 days prior to the delivery and up to the 45 days thereafter. The employee may opt for reducing the time prior to the delivery to 30 days and accumulate them post-delivery. Additionally, the employee shall enjoy stability in her employment - 07 months and a half prior to or after the delivery and shall have the right to opt for excess periods while holding her position in addition to daily rests for breast-feeding (1 hour ) until the 1st year of the birth.

National Holidays
A national holiday is the day stipulated by the State as a non-working day across the country due to a celebration or festivity of a civic or religious character.
Article 165 of the Contract of Employment law states that the days established in the statutory regime regulating them shall be national holidays and non-working days.

Governed by Law 21.329, except for December 8, incorporated by Law 24.445.

Date Commemoration
January 1st New Year
March 24 National Day for the Memory of Truth and Justice
April 2 Veteran Day and for those fallen at the Malvinas War (Law 26.110)
April 6 Holy Friday, a Christian festivity
May 1st Labor Day
May 25 First Patriotic Government
July 9 Independence Day
December 8 Immaculate Conception of Maria
December 25 Christmas
June 20 (**) Day when General Manuel Belgrano entered immortality
August 17 (**) Day when General José de San Martín entered immortality
October 12 (*) Columbus Day
April 5 Holy Thursday, a Christian Festivity
Jewish Passover ***
September 13 First day of the Rosh Hashana, the Jewish New Year*
September 14 Second day of the Rosh Hashana, the Jewish New Year*
September 22 YOM KIPPUR (Great Day of Atonement)*
#January 1st Sacrifice Festivity**
#January 20 Islamic New Year**
#October 13 Conclusion of the Fast**

(*) These Holidays are governed by Law 23.555. The dates falling on Tuesdays or Wednesdays are moved to the previous Monday; those falling on Thursday or Fridays are moved to the Monday.
(**)These Holidays are governed by Law 24.445. The national holidays of June 20 and August 17 are moved to the third Monday of the respective month.
# Approximate dates, they are governed by the moon calendar.
*Only for inhabitants practicing the Jewish Religion. Established by Law 24.571.
** Only for inhabitants practicing the Islamic Religion. Established by Law 24.757.
***Only for those who practice the Jewish Religion. (Law 26.089). Enacted on April 19 (The two first days and the two last days of the Jewish Passover).

Working hours

The normal working hours comprise 8 hours per day or 48 weekly hours. Nightly work is reduced to 6 hours.
Overtime during weekdays is paid at 150% of the normal salary. If overtime is worked on Saturdays after 1 p.m., Sundays and holidays, overtime is paid at 200% of the normal salary. The maximum limits for overtime are 30 hours per month and 200 hours per year.


The breach of the employment relationship may occur for different reasons that may generate the obligation for the employer to pay amounts as compensations.

• The breaches for non-compensable reasons may be:

Resignation of the worker.
Mutual agreement between the parties.
Dismissals with a fair cause.
Conclusion of the fixed-term agreement of less than 1 year.

In these cases the worker shall be entitled to collect:

• The salary pro rata to the breach of contract date.
• Variable remunerations accrued as of such date.
• Supplementary annual salary pro rata to the six-month period worked.
• Holidays not enjoyed.
• Family allowances (if applicable).

• The breaches for compensable reasons may be:

Dismissals without a fair cause (it is the most common type used by the company to fire staff).
Dismissal due to the bankruptcy of the company.
Absolute disability of the worker.
Dismissal for lack of work, force majeure or reduction of work.
Death of the worker or the employer.
End of the fixed-term agreement of more than one year.
Dismissal without a fair cause due to marriage, pregnancy, discrimination.

In these cases the worker shall be entitled to collect:

• Supplementary annual salary.
• Compensation for length of service (except if the employee is under trial period): 1 salary for each year of work or fraction higher than 3 months.
• Non-enjoyed holidays.
• Supplementary annual salary on non-enjoyed holidays.
• Prior notice (only if omitted).
• Supplementary annual salary on prior notice.
• Days missing to complete the month of dismissal.
• Supplementary annual salary on the payment of the days missing to complete the month of dismissal.

The employer may opt for giving prior notice to the employee, i.e. notifying the dismissal within the terms established by the law according to length of service and taking into account the law that must be applied at the time of admission of the worker to the company, thus avoiding the payment of the prior notice omitted.
If the dismissals involve employees protected by the law in the case of pregnancy or maternity or marriage, the compensations increase with a fine of 13 salaries.
On his own behalf, the employer is obliged, upon ending the employment relationship, to deliver the Service Certifications. This means a certification that states the time during which the services were provided, the salaries received, dues and contributions to the social security. The failure to deliver the service certifications may give rise to fines that amount to 3 times the normal and usual remuneration during the last 12 months.



Categories and taxes for small taxpayers obtaining their income from

1. Leases and/or provisions of services

Category Turnover tax
Up to $ Surface affected
Up to Electric power consumed per annum, up to Tax payable
A 12.000 20 m2 2.000 kW 92,44
B 24.000 30 m2 3.300 kW 98,44
C 36.000 45 m2 5.000 kW 134,44
D 48.000 60 m2 6.700 kW 187,44
E 72.000 85 m2 10.000 kW 269,44

2. Rest of the activities

Category Turnover tax
Up to $ Surface affected
Up to Electric power consumed per annum, up to Tax payable
F 12,000 20 m2 2,000 kW 92.44
G 24,000 30 m2 3,300 kW 98.44
H 36,000 45 m2 5,000 kW 134.44
I 48,000 60 m2 6,700 kW 177.44
J 72,000 85 m2 10,000 kW 253.44
K 96,000 110 m2 13,000 kW 369.44
L 120,000 150 m2 16,500 kW 464.44
M 144,000 200 m2 20,000 kW 564.44



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