Tax
DGI administers 25 percent IRAE and 22 percent VAT on a territorial base
The Dirección General Impositiva administers taxation. Corporate income tax (IRAE) is 25 percent, VAT (IVA) is 22 percent with a reduced 10 percent rate, and personal income tax (IRPF) is progressive. Taxation is largely territorial, and new residents may elect a multi-year holiday on foreign investment income under a tax-residence incentive regime.
Key rules
- Jurisdiction — National, with departmental contributions on property and vehicles
- Deadline — IRAE annual return: within four months of financial year end
- Deadline — IVA: monthly
Governing law
- Título 4 del Texto Ordenado 1996 - IRAE
- Título 10 - IVA
- Ley 19.937 and Decreto 163/020tax residence incentives
In practice
The territorial principle means foreign-source income of individuals is largely outside the net, and the tax-residence regime allows qualifying new residents to choose either an extended exemption on foreign passive income or a flat 7 percent rate, which has attracted retirees and remote entrepreneurs particularly from Argentina. Free-zone entities sit outside the ordinary IRAE system altogether.