Argentina is the market where foreign finance teams most often get the structure right and the cash flow wrong. The tax rules are demanding but knowable. The currency rules are the ones that determine whether profits earned in Buenos Aires ever reach the parent, and they have changed substantially since 2025 in a direction that makes Argentina worth reassessing. For the incorporation process itself, see our complete guide to company formation in Argentina.
This post covers what an Argentine subsidiary pays, what it files, and how money moves in and out.
Corporate tax
Argentine corporate income tax runs on a progressive scale rather than a flat rate, at 25 percent, 30 percent and 35 percent depending on taxable profit, with a 7 percent withholding on dividends distributed. Combined, that puts the effective burden on distributed profits at roughly 39.5 percent.
Two features matter for planning. The bracket thresholds are indexed annually to inflation, published by ARCA and applied to fiscal years beginning after each update, so the peso figures that define each band move every year. And the annual return falls due in the fifth month after the fiscal year end, with the exact day determined by the entity's CUIT digit, which is a small detail that catches groups running a standard global close calendar.
Note also that AFIP is now ARCA. References to AFIP in older guidance, contracts, or software configurations point to a body that has been restructured.
VAT and the digital VAT book
VAT is 21 percent as the general rate, with a reduced 10.5 percent rate and an increased 27 percent rate applying to specified goods and services. It is declared monthly through the mandatory Libro IVA Digital, and every invoice requires electronic issuance with real-time CAE authorisation from the tax authority.
The practical implication for a foreign group is that your invoicing cannot run out of a shared service centre on a global template. Argentine invoices must be authorised individually by the tax authority at the moment of issue, which means local system integration from day one rather than as a phase two project.
Ingresos Brutos, the tax that surprises everyone
Provincial gross receipts tax runs in parallel to the federal system and is charged on revenue rather than profit. Rates and rules are set province by province, and a company operating in more than one province apportions its base between them under the Convenio Multilateral.
This is the single most underestimated cost in Argentine budgeting. Because it applies to turnover, a loss-making subsidiary still pays it, and because it is provincial, a company selling nationally can find itself registered and filing in a dozen jurisdictions. Model it before you commit to a distribution footprint.
Transfer pricing
Transactions with a foreign parent or affiliate require transfer pricing documentation once the relevant thresholds are exceeded. Intercompany service charges, management fees, and financing arrangements are all in scope, and Argentina's tax authority scrutinises them closely, particularly where the effect is to move margin out of the country. Getting the documentation in place contemporaneously is far cheaper than reconstructing it under audit.
Currency controls, and what actually changed
Argentina reinstated exchange controls in September 2019, and for close to seven years foreign-owned companies could not reliably remit profits to their parents. Retained earnings piled up inside the local system with no route out.
That changed with Central Bank Communication A 8226, issued on 11 April 2025 and effective from 14 April, which authorised financial institutions to permit access to the official foreign exchange market for the payment of dividends and profits to non-resident shareholders. The condition is significant: it covers only profits generated in fiscal years beginning on or after 1 January 2025. Dividends accumulated in earlier years under the previous controls remain subject to restrictions, with mechanisms such as BOPREAL bonds available as an alternative channel.
The mechanism is genuinely working rather than theoretical. Argentine companies remitted around USD 2.6 billion in dividends and profits during the first half of 2026, and roughly USD 3.3 billion in the year to July, levels not seen in over a decade. June alone accounted for about USD 1.015 billion, the highest monthly figure since 2010.
What this means for a group evaluating Argentina now:
- Profits earned from 2025 onward have a defined route home through the official market.
- Profits earned before 2025 do not, and should be treated as a separate and harder problem.
- The route depends on the capital having entered correctly and on the entity's filings being in order, since the bank processing the remittance will check both.
- The regime has moved twice in seven years. Build the plan on the current rules, and revisit it rather than assuming permanence.
Inflation accounting
Argentina applies inflation adjustment for tax and accounting purposes, which means financial statements are restated rather than reported at historical cost. Groups consolidating Argentine results into a parent reporting in dollars or euros need to handle both the local restatement and the translation, and the two are frequently confused. This is a specialist local accounting function, not something to run from a regional hub without local review.
How NavviPal helps
We handle the full Argentine compliance calendar: monthly VAT through the digital book, electronic invoicing with CAE authorisation, provincial gross receipts filings across the provinces where you trade, the annual return on your CUIT-specific date, transfer pricing documentation, and inflation-adjusted statements ready for consolidation. Where profits are being remitted, we prepare the entity-side documentation the bank requires. You can see the full scope on our accounting and tax service page, and our Argentina cost guide breaks down formation and ongoing compliance costs in full.
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Frequently asked questions
Can foreign companies repatriate profits from Argentina in 2026?
Yes, for profits from fiscal years beginning on or after 1 January 2025, through the official exchange market under the 2025 easing. Earlier retained profits remain restricted and need a different route.
What is the corporate tax rate in Argentina?
A progressive scale of 25, 30 and 35 percent by profit level, plus 7 percent withholding on distributed dividends, giving an effective rate near 39.5 percent on distributed profits.
What is Ingresos Brutos and does my company pay it?
A provincial tax on gross revenue, payable regardless of profitability, in every province where you carry on activity. Multi-province operations apportion under the Convenio Multilateral.
Is electronic invoicing mandatory in Argentina?
Yes. Every invoice requires real-time CAE authorisation from the tax authority, so local system integration is required from the start.
When is the annual corporate tax return due?
In the fifth month following the fiscal year end, with the specific day set by the entity's CUIT digit.
Does Argentina still have the cepo?
Controls have been progressively eased rather than removed. The corporate dividend channel reopened in 2025, but Argentina remains a controlled currency environment and the rules have changed repeatedly.
Rates and rules last verified in August 2026 against ARCA published scales for fiscal years beginning 1 January 2026, BCRA Communication A 8226, and BCRA balance of payments data reported through July 2026. Argentina's tax thresholds are inflation-indexed annually and currency rules have changed frequently, so confirm the current position before acting.
For the incorporation process, see our guide to company formation in Argentina. To discuss your structure, contact our team.
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