What's normal abroad but not in Argentina: a practical comparison for foreign investors

Key rules

How to read the comparison tables

Each row has seven columns:

• Practice abroad: what is routine in at least one of the comparison countries.
• Where (official source): the country and a link to the official government or registry page we downloaded. "Not yet sourced" means we could not download an official page and the cell carries a (unconfirmed) tag.
• Argentina today: the rule as of 25 October 2026.
• Legal basis: the Argentine law, decree or resolution with article.
• Practical impact: time and money, where a figure can be traced to a source; otherwise (unconfirmed).
• Reform pending: whether a change is scheduled, announced in a legal text, or not known.

Abbreviations: LGS General Companies Law 19.550 (t.o. 1984); LCT Employment Contract Law 20.744 (t.o. 1976); CCyC Civil and Commercial Code (Law 26.994); IGJ Inspección General de Justicia (registry for the City of Buenos Aires); ARCA Agencia de Recaudación y Control Aduanero (formerly AFIP); BCRA Central Bank; BO Boletín Oficial; RG General Resolution; CM Convenio Multilateral; SAS Sociedad por Acciones Simplificada; SA Sociedad Anónima; SRL Sociedad de Responsabilidad Limitada.

The comparison table

A. Setting up and running the company

B. Taxes

C. Money, foreign exchange and banking

D. Employment

E. People, property and disputes

Companies and registry

• An SAS must be registered within 24 hours from the business day after filing, if the founders use the registry's model bylaws; registries must provide digital filing with digital signature (Law 27.349 art. 38, as replaced by Law 27.444 art. 35, BO 18 Jun 2018).
• A registered SAS is entitled to its CUIT within 24 hours, without proof of address until 12 months after incorporation; non resident shareholders may obtain a CDI within 24 hours (Law 27.349 art. 60(2)).
• Banks must offer the SAS a mechanism to open an account with only the registered bylaws and the CUIT, without any obligation to lend (Law 27.349 art. 60(1)).
• SAS books (minutes, share register, journal, inventory and balance sheet) are kept digitally and individualised before the registry (Law 27.349 art. 58).
• An SA is incorporated by public instrument (LGS art. 165). The registry checks legal and tax requirements before registration (art. 167). Capital must be fully subscribed, at least ARS 30,000,000 (art. 186, Decree 209/2024), with at least 25% of cash contributions paid in and proved by a deposit in an official bank (art. 187).
• The absolute majority of SA directors must have their real domicile in Argentina; all must give a special domicile in Argentina (LGS art. 256). At least one SAS administrator must live in Argentina; foreign administrators need a CDI and a local representative (Law 27.349 art. 51).
• Companies other than SAS may keep books and accounting records by digital means in the same way as SAS (LGS art. 61, as replaced by Law 27.444 art. 21). Otherwise the CCyC requires bound books to be individualised by the registry (CCyC art. 323).
• Foreign companies must register under LGS art. 118 (branch or permanent representation) or art. 123 (to hold shares in Argentine companies) (LGS arts. 118 and 123). Acts of an Argentine company in which an unregistered foreign shareholder's vote was decisive cannot be registered until the foreign shareholder registers (IGJ RG 15/2024 art. 190, as replaced by RG 4/2026 art. 9).
• For an art. 123 registration, the IGJ requires a good standing certificate no older than six months, the bylaws certified by a notary or the home registry, the resolution deciding the registration and appointing the representative, the representative's acceptance with a special domicile, and sworn statements on politically exposed persons and beneficial owners (IGJ RG 15/2024 art. 164, as replaced by RG 4/2026 art. 2).
• Documents from abroad must be authenticated in the country of origin, apostilled or legalised, and translated by a registered public translator whose signature is legalised by the professional body (IGJ RG 15/2024 Annex A art. 34(6)). Signatory powers must be certified by a notary or public official, or the document may be notarised in Argentina (art. 203, as replaced by RG 4/2026 art. 13).

Tax

• Tax on bank credits and debits: maximum 6‰ set by the Executive (Law 25.413 art. 1), general rate 6‰ for credits and 6‰ for debits (Decree 380/2001 art. 7); cash withdrawals at double rate except for individuals and micro and small companies (Law 25.413 art. 1, second paragraph, added by Law 27.541 art. 45); 33% creditable against income tax (Decree 380/2001 art. 13).
• Gross income tax base split: 50% in proportion to expenses and 50% in proportion to income for multi jurisdiction taxpayers (Convenio Multilateral art. 2).
• VAT withholding by designated agents: 50% of VAT on goods, 80% on services and on reduced rate items, 100% in specified cases (RG 2854/2010 arts. 8 and 9).
• Income tax withholding on domestic services paid to registered suppliers: 2% after a monthly non taxable amount of ARS 67,170; unregistered suppliers 25% or 28% (RG 830/2000 Annex VIII, code 94).
• Wealth tax on shares paid by the company: 0.50% of equity value, single and final (Personal Assets Tax, unnumbered article after art. 25). Personal assets tax rate for individuals in 2027: 0.25% above the non taxable minimum (art. 25(e)).
• Tax inflation adjustment applies when the 36 month CPI exceeds 100% at year end (Income Tax Law art. 106).
• Treaty benefits require an apostilled residence certificate valid 12 months if no term is stated (ARCA RG 5855/2026).
• Export duties: rates set by decree under the Customs Code; current agricultural schedule in Decree 423/2026 arts. 1 to 3 and Annexes.

FX and money

• Dividends: access without prior BCRA approval when paid from audited statements, within the amount approved by the shareholders' meeting, with the external assets and liabilities survey filed, and from profits of years starting on or after 1 Jan 2025 or one of the other listed routes (BCRA point 3.4).
• 90 day cross restriction for non individuals (point 3.16.3).
• Service export proceeds: bring in and convert within 20 business days (point 2.2.1).
• Resident individuals may buy foreign currency for savings by debit to their account; cash purchases are limited to US$ 100 a month (point 3.8.1).
• Foreign currency obligations: the debtor is released only by paying the agreed currency; judges cannot change it (CCyC art. 765, as replaced by DNU 70/2023 art. 250).

Employment

• Probation 6 months (LCT art. 92 bis). Severance: LCT art. 245 as replaced by Law 27.802 art. 51 (formula, cap of 3 times the agreement average, floor of 67%, minimum one month, exclusive remedy).
• Labor credits updated by CPI plus 3% a year (LCT art. 276 as replaced by Law 27.802).
• Collective agreements bind all workers and employers in their scope (Law 14.250 art. 4 as replaced by Law 27.802 art. 130). Union solidarity contributions capped at 2% and chamber contributions at 0.5% of pay (Law 14.250 art. 9 as replaced by Law 27.802 art. 133).
• Employer contributions: Law 27.541 art. 19 (20.40% or 18%), art. 22 (ARS 7,003.68 monthly deduction per worker), art. 23 (further ARS 10,000 monthly deduction for employers with up to 25 employees) (unconfirmed); health insurance 6% employer and 3% employee (Law 23.660 art. 16).
• Contribution base for September 2026 accruals: minimum ARS 144,363.55 (US$ 92) and maximum ARS 4,691,748.47 (US$ 3,000) (ANSES Res. 257/2026 art. 3).

People, property, disputes

• Mandatory pre trial mediation (Law 26.589 art. 1), up to 60 days (art. 20).
• Real estate contracts by public deed (CCyC art. 1017(a)).
• Border security zones: national interest that land there belong to native born Argentines; transfers, leases and other rights giving possession need authorisation (Decree Law 15.385/44 art. 4, as replaced by Law 23.554 art. 42).
• Rural land law 26.737 repealed (DNU 70/2023 art. 154).
• Migration fee unit: UMSM = ARS 1,000 (Decree 584/2024 art. 2).

Rates, thresholds and deadlines at a glance

Timeline of norms (Boletín Oficial dates)

The ten that matter most: why, cost, and how to plan

1. Exchange controls and dividends

Why. The BCRA still regulates access to the official FX market for companies. Dividend access is open only if the statements are closed and audited, the amount does not exceed what the shareholders' meeting distributed, the external assets and liabilities survey is up to date, and the client fits one of the listed cases (point 3.4). The cleanest case is "distributable profits from realised gains in regular audited annual statements of years starting on or after 1 January 2025" (point 3.4.4.1). Profits from earlier years need fresh foreign direct investment (dividends up to 30% of new contributions brought in since 17 January 2020, at least 30 days after the last contribution, with proof of capitalisation, point 3.4.4.4), BOPREAL bonds, a RIGI vehicle, or prior BCRA approval.

What it costs. Trapped cash loses value to inflation (September 2026 monthly CPI 1.9%, INDEC). Older retained earnings may effectively be repatriated only through BOPREAL or at market exchange rates.

Uncomfortable detail. If the company itself buys dollars at the official market, it cannot use the MEP or CCL routes 90 days before or after (point 3.16.3). Group treasury policies that move cash freely between markets do not work in Argentina.

Planning tip. Close the 2025 year with clean audited statements and pass the dividend resolution promptly; keep pre 2025 retained earnings separate in the equity note so the bank can verify the year of origin. Map the 90 day window before any securities transaction. Full detail: /guide/fx/exchange-controls/.

2. The bank tax

Why. Law 25.413 taxes debits and credits on bank accounts at up to 6‰, and the regulation sets 6‰ each way (Decree 380/2001 art. 7). It is collected by the bank. Only 33% of the tax is creditable against income tax (art. 13), and the credit is lost if the company has no income tax to offset it.

What it costs. About 1.2% of the money that passes in and out of a current account, about 0.8% net of the credit (Example 2). A loss making start up pays it in full.

Uncomfortable detail. For companies that are not micro or small enterprises, cash withdrawals pay double (Law 25.413 art. 1, second paragraph). The tax has been "temporary" since 2001 and is now extended to 31 December 2027 (Law 27.702).

Planning tip. Keep intra group and own account transfers between accounts of the same holder (exempt under the regulation, see the bank tax page), check whether the company qualifies for the SME credit (Law 27.264 art. 6), and model the tax in pricing. Full detail: /guide/taxes/bank-tax/.

3. Gross income tax on top of VAT

Why. Provinces have taxing power over gross receipts, coordinated by the Convenio Multilateral and federal tax sharing law (Law 23.548 art. 9(b)(1)). The tax has no input credit, so each stage of a supply chain pays again. The 2021 fiscal pact capped rates by activity (Law 27.687 Annex).

What it costs. For a services company, the cap is 5.00% of gross receipts. On US$ 100,000 of net revenue that is up to ARS 7,819,500 (US$ 5,000) a year, before municipal fees (Example 2). Each province's actual rate must be checked (unconfirmed).

Uncomfortable detail. Banks, large customers and card processors withhold the tax in advance (SIRCREB, SIRCAR, SIRTAC). Exporters and low margin businesses often accumulate credits they cannot use.

Planning tip. Register under the Convenio Multilateral if you have activity in more than one jurisdiction; claim exemptions for exports where the province implemented them; review the SIRCREB rate assigned to the company every month and request reductions when credits pile up. Full detail: /guide/taxes/gross-income/.

4. Withholding and perception regimes

Why. The Tax Procedure Law lets ARCA designate collection agents (Law 11.683 art. 22). Designated agents withhold 80% of the VAT on service invoices (RG 2854 art. 8(c)), 100% when the supplier is flagged (art. 9), and 2% income tax on services (RG 830 Annex VIII).

What it costs. In Example 2, ARS 29,399,977 (US$ 18,799), 18.8% of net revenue, is held back by the customer. The withheld amounts are credits, not indexed. If they sit for six months while monthly inflation stays at September 2026's 1.9%, they lose about 10.7% of their real value, about ARS 3.1 million (US$ 2,008) (Example 2, step 7; the inflation path is an assumption).

Uncomfortable detail. Your subsidiary will also become a withholding agent the day it pays local suppliers, and agents are personally liable for tax they fail to withhold (see the withholdings page).

Planning tip. Apply for exclusion certificates when withholdings exceed the annual liability (RG 830 art. 38; RG 2226), keep supplier tax status checks automated, and register the company's VAT position early so that customers' supplier file checks do not trigger 100% withholding. Full detail: /guide/taxes/withholdings/.

5. Severance instead of at will

Why. The LCT protects against dismissal without cause by mandatory severance and notice. Law 27.802 (BO 6 March 2026) kept the one month per year formula but defined the base, set a floor of 67% under the cap, and made severance "the only remedy" for dismissal without cause, extinguishing civil claims except those based on criminal offences (LCT art. 245).

What it costs. For an employee earning ARS 2,000,000 a month dismissed after 8 months: one month severance, one month notice in lieu and the rest of the month if dismissed mid month, roughly three months of pay, ARS 6,000,000 (US$ 3,837) (Example 1), plus proportional SAC and vacation (unconfirmed).

Uncomfortable detail. The probation period only works if the worker was registered from day one (LCT art. 92 bis, last paragraph).

Planning tip. Register every hire with ARCA before the first day; use the six month probation honestly; set up the FAL account before 1 December 2026; and book a severance provision. Full detail: /guide/labor/employment-contracts-and-severance/.

6. Collective agreements apply whether or not anyone joins the union

Why. Homologated agreements "shall govern all workers of the activity, region or category" and apply "whether or not" workers and employers are members of the signatory associations (Law 14.250 art. 4 as replaced by Law 27.802 art. 130).

What it costs. Minimum pay, categories and some benefits come from the agreement. Contributions to unions valid for non members are capped at 2% of pay and to employer bodies at 0.5% (art. 9 as replaced by Law 27.802 art. 133).

Uncomfortable detail. Identifying the applicable agreement is a legal judgement based on the company's activity; a wrong classification creates back pay claims.

Planning tip. Before hiring, get a written opinion on the applicable agreement and its pay scales; consider a company level agreement, which now prevails over the activity agreement (Law 14.250 art. 19 as replaced). Full detail: /guide/labor/employment-contracts-and-severance/.

7. Payroll contribution levels

Why. Social security is financed by employer contributions on payroll (Law 27.541 art. 19; Law 23.660 art. 16).

What it costs. On a gross salary of ARS 2,000,000 a month, the employer pays ARS 478,739 (US$ 306) a month at the 18% rate, about 23.9% of gross pay, or 26.3% at the 20.40% rate, before the work risk insurance premium (Example 1). A US employer pays 7.65% FICA on the same wage (irs.gov), plus federal and state unemployment taxes (unconfirmed).

Planning tip. Check whether the company is in the 20.40% group (large services or commerce companies above the medium tramo 2 sales limit) or the 18% group, and whether new hires qualify for the RIFL reduced rates between 1 May 2026 and 30 April 2027. Full detail: /guide/taxes/payroll/.

8. Incorporation speed and the SAS shortcut

Why. The SA is a formal vehicle: public deed (LGS art. 165), registry control (art. 167), publication (art. 10) and minimum capital (art. 186). The SAS was created to be fast, with a 24 hour statutory registration term when model bylaws are used (Law 27.349 art. 38), but the IGJ suspended automatic registration in 2024 (RG 12/2024 art. 3), so files are reviewed.

What it costs. Capital: ARS 7.5 million (US$ 4,796) of cash to deposit at a minimum for an SA. Fees and notary costs (unconfirmed). Time: the UK's 24 hours compares with an Argentine SAS legal minimum of a few business days and an SA timeline that depends on IGJ review (unconfirmed).

Uncomfortable detail. The SAS is not among the RIGI project vehicles (Law 27.742 art. 169, as read on the SAS page; the RIGI title is not in this page's source file) (unconfirmed), and an SA with a single shareholder (SAU) is under permanent state supervision (LGS art. 299(7)).

Planning tip. If speed matters and you will not need RIGI or a public offering, start with an SAS; otherwise file the SA with the foreign parent's art. 123 registration jointly (IGJ RG 15/2024 art. 164, joint filing paragraph). Full detail: /guide/entities/sas/.

9. Foreign documents: apostille, translation, six months

Why. The registry must verify that the foreign parent exists under its own law (LGS arts. 118 and 123). IGJ accepts foreign documents only if authenticated abroad, apostilled or legalised, and translated by an Argentine registered public translator (IGJ RG 15/2024 art. 34(6)). The good standing certificate must be no older than six months (art. 164).

What it costs. Foreign notary, apostille, courier and translation fees (unconfirmed); weeks of calendar time if documents are not prepared in parallel.

Relief since May 2026. IGJ RG 4/2026 lets later bylaw changes be evidenced by a note from the representative, accepts a consolidated text of the bylaws, allows a self declaration of powers by the signing officer when notarial certification of powers is impossible, and accepts digitally issued resolutions if apostilled and verifiable (arts. 2 and 13).

Planning tip. Order the good standing certificate last, apostille everything in one batch, and have the translation done in Argentina by a registered translator. Full detail: /guide/entities/sas/.

10. Resident directors

Why. LGS art. 256 requires the absolute majority of SA directors to have their real domicile in Argentina; Law 27.349 art. 51 requires at least one resident SAS administrator.

What it costs. Fees of professional local directors (unconfirmed); directors' personal liability for company acts, including under tax law (see the tax procedure page).

Planning tip. Keep the board small; remember that an SA without a statutory auditor (syndic) must also elect alternate directors (LGS art. 258), and the resident majority rule applies to the board as a whole. Give clear powers of attorney, and ensure the local director has ARCA biometric registration ready. Full detail: /guide/entities/sas/.

Where Argentina is easier than investors expect

Fairness requires the other side of the ledger, all from the same sources:

• Contract freedom in foreign currency. Obligations in dollars must be paid in dollars, and judges cannot change the currency (CCyC art. 765 as replaced by DNU 70/2023).
• No farmland ownership cap for foreigners after the repeal of Law 26.737 (DNU 70/2023 art. 154), subject to border zones and to the legal challenge risk above.
• Treaty certificates can avoid the apostille when the foreign tax authority offers online verification (ARCA RG 5855/2026).
• Severance is now capped and exclusive (LCT art. 245 as replaced), and labor judgments can be paid in instalments (art. 277).
• Individuals may again buy dollars for savings through their bank (BCRA point 3.8).
• IGJ explicitly aligned foreign company rules with UNCITRAL registry principles and removed requirements it found to add cost without control value (IGJ RG 4/2026 recitals).

Step by step

This is the generic path for a foreign parent setting up an Argentine company. Steps marked "IGJ" apply to the City of Buenos Aires; provinces have their own registries (unconfirmed).

1. Choose the vehicle. SAS for speed and digital books; SA if you need RIGI, a large board, public offering or familiarity for lenders; SRL for a closely held company. Check minimum capital (SA ARS 30,000,000; SAS two SMVM).
2. Choose resident directors or administrators. Majority resident for an SA (LGS art. 256), at least one for an SAS (Law 27.349 art. 51).
3. Prepare the foreign parent file abroad (in parallel). Good standing certificate (six months maximum), certified bylaws or consolidated text, board resolution to register under LGS art. 123 and appoint a representative with powers, beneficial owner and PEP data (IGJ RG 15/2024 art. 164). Authenticate, apostille, courier to Argentina.
4. Translate in Argentina. Registered public translator; signature legalised by the translators' association (art. 34(6)).
5. Get tax IDs for foreign participants. CDI for non resident shareholders and administrators (Law 27.349 art. 60(2) for SAS); legal representatives need ARCA fiscal password and biometric validation (in person if no DNI) (unconfirmed).
6. Sign the incorporation instrument. Public deed for an SA (LGS art. 165); for an SAS, model bylaws if you want the 24 hour term (Law 27.349 art. 38).
7. Deposit capital. At least 25% of cash contributions in an official bank for an SA (LGS art. 187).
8. Publish the notice in the Boletín Oficial (LGS art. 10) and pay the IGJ incorporation fee (IGJ RG 15/2024 art. 7) (unconfirmed).
9. File with IGJ. Joint filing of the parent's art. 123 registration and the new company is allowed (art. 164, joint filing paragraph); the company registration is conditional on the parent's requirements being met.
10. CUIT, tax registrations and electronic domicile. For an SAS the IGJ and ARCA system issues the CUIT with registration; for other types apply to ARCA. Register for VAT, income tax, gross income tax (local or Convenio Multilateral) and as employer.
11. Open the bank account. Present registered bylaws, CUIT and beneficial ownership information (Law 27.349 art. 60(1) for SAS) (unconfirmed).
12. Books. SAS digital books enabled automatically; SA or SRL rubricate books or obtain authorisation for digital registers (LGS art. 61; CCyC art. 323).
13. Before the first hire. Identify the collective agreement, contract a work risk insurer (Law 24.557), register each worker with ARCA before day one, and prepare the FAL account (from 1 Dec 2026).
14. Before the first dividend. Audited annual statements, shareholders' meeting approval, external assets and liabilities survey up to date (BCRA point 3.4).

Cost to do it (SA, City of Buenos Aires). Capital ARS 30,000,000 subscribed (US$ 19,183), of which at least ARS 7,500,000 (US$ 4,796) cash paid in at registration; IGJ incorporation fee, BO publication, notary deed, apostilles and translations (unconfirmed); time from complete documents to registration not sourced (unconfirmed). Cost to do it (SAS). Capital two SMVM (unconfirmed); IGJ fee (unconfirmed); statutory term 24 hours from the next business day with model bylaws, CUIT 24 hours.

Worked examples

Facts and assumptions. A US parent sets up a wholly owned Argentine SA in the City of Buenos Aires and hires 10 employees on 1 January, each with a gross monthly salary of ARS 2,000,000 (US$ 1,279). The salary is an assumption for illustration, not a sourced figure; it is below the maximum contribution base of ARS 4,691,748.47 (ANSES Res. 257/2026). The company is in the 18% employer group (Law 27.541 art. 19(b)); a variant at 20.40% is shown. Equity at year end is assumed equal to the minimum capital. One employee is dismissed without cause on the 15th day of month 9.

Step 1. Capital. Minimum subscribed capital ARS 30,000,000 (US$ 19,183) (LGS art. 186). Cash paid in at registration at least 25%: ARS 7,500,000 (US$ 4,796) (art. 187); the balance within two years (art. 166(2)).

Step 2. Set up fees and professional costs. IGJ incorporation fee, BO publication, notary deed, US apostilles and Argentine sworn translation, ARCA registrations (no fee stated for CUIT), local resident directors: amounts not in the sources (unconfirmed).

Step 3. Monthly employer contributions per employee (18% group). * Pension and social security subsystems: (2,000,000 minus 7,003.68) × 18% = 1,992,996.32 × 18% = ARS 358,739.34. * Health insurance: 2,000,000 × 6% = ARS 120,000.00. * Total: ARS 478,739.34 (US$ 306.12), 23.94% of gross pay. The further ARS 10,000 monthly deduction for employers with up to 25 employees (Law 27.541 art. 23) is ignored here (unconfirmed). * At 20.40%: (1,992,996.32 × 20.40%) + 120,000 = ARS 526,571.25 (US$ 336.70), 26.33% of gross.

Step 4. Annual cost per employee. Twelve monthly salaries plus SAC (one twelfth of annual pay, LCT art. 121) = 13 × 2,000,000 = ARS 26,000,000 (US$ 16,625). Contributions: 12 × 478,739.34 + contributions on the SAC (2,000,000 × 24% = 480,000, without the per worker deduction (unconfirmed)) = ARS 6,224,872.05 (US$ 3,980). At 20.40%: ARS 6,846,854.99 (US$ 4,378).

Step 5. Ten employees, year one. Gross pay ARS 260,000,000 (US$ 166,251) plus contributions ARS 62,248,720.51 (US$ 39,804) = ARS 322,248,720.51 (US$ 206,055). At 20.40%: ARS 328,468,549.91 (US$ 210,032). Work risk insurance premium extra (unconfirmed).

Step 6. Bank tax on paying payroll. If the full payroll cost leaves the company's current account by debit: 322,248,720.51 × 0.6% = ARS 1,933,492.32 (US$ 1,236), of which 33% is creditable against income tax if the company has income tax to pay.

Step 7. Dismissal in month 9. Severance: 8 months of service, one month minimum = ARS 2,000,000 (LCT art. 245). Notice in lieu: one month = ARS 2,000,000 (art. 231). Rest of the month (art. 233), shown here as a full month for simplicity = ARS 2,000,000. Total about ARS 6,000,000 (US$ 3,837), plus proportional SAC and vacation (unconfirmed). From 1 December 2026 the FAL may help fund such payments, but only after 12 monthly contributions (Decree 408/2026 art. 15 as replaced, per the labor page).

Step 8. Wealth tax on the shares. ARS 30,000,000 × 0.5% = ARS 150,000 (US$ 96), paid by the company (Personal Assets Tax, article after art. 25).

Step 9. The Delaware comparison.

Result. On sourced figures alone, the Argentine subsidiary's year one payroll related taxes and dismissal cost are about US$ 44,900 (US$ 39,804 + US$ 3,837 + US$ 1,236, before the 33% bank tax credit) against about US$ 12,700 of employer FICA in the US on the same gross pay. Formation and annual fees in both places are not yet sourced. The comparison ignores salary levels, which differ greatly between the two countries, and US unemployment taxes and benefits costs.

Facts and assumptions. An Argentine SRL providing IT consulting in the City of Buenos Aires, registered for VAT and income tax, invoices a large Argentine company that is a designated VAT withholding agent. Net fee US$ 100,000 = ARS 156,390,000 in one month. The SRL is not a micro or small enterprise. It collects into a peso current account and later spends the full amount received (suppliers, salaries, taxes) by debit from the same account. The gross income tax rate is set at the 5.00% cap of the 2021 fiscal pact for business services; the actual City rate must be checked (unconfirmed). Municipal fees, SIRCREB and the customer's gross income tax withholding are discussed separately because their rates are not in the sources.

Step 1. Invoice. * Net: ARS 156,390,000.00 (US$ 100,000). * VAT 21%: ARS 32,841,900.00 (US$ 21,000). * Total: ARS 189,231,900.00 (US$ 121,000).

Step 2. Withholdings by the customer. * VAT withholding, 80% of VAT on services (RG 2854 art. 8(c)): 32,841,900 × 80% = ARS 26,273,520.00 (US$ 16,800). * Income tax withholding, code 94: (156,390,000 minus 67,170) × 2% = ARS 3,126,456.60 (US$ 1,999) (RG 830 Annex VIII). * Total held back: ARS 29,399,976.60 (US$ 18,799), 18.80% of the net fee.

Step 3. Cash credited to the bank account. 189,231,900 minus 29,399,976.60 = ARS 159,831,923.40 (US$ 102,201).

Step 4. Bank tax. * On the credit: 159,831,923.40 × 0.6% = ARS 958,991.54 (US$ 613). * On the later debits of the same amount: ARS 958,991.54 (US$ 613). * Total: ARS 1,917,983.08 (US$ 1,226), 1.23% of net revenue. * Credit against income tax, 33%: ARS 632,934.42 (US$ 405), usable only if the SRL has income tax to offset. * Net bank tax cost: ARS 1,285,048.66 (US$ 822), 0.82% of net revenue.

Step 5. Gross income tax. 156,390,000 × 5.00% = ARS 7,819,500 (US$ 5,000). The VAT is assumed outside the base (unconfirmed).

Step 6. SIRCREB. The bank also withholds gross income tax on the credit at the rate shown for the SRL in the monthly padrón (RG CA 104/2004; RG CA 6/2023). For every 1% of rate, ARS 1,598,319.23 (US$ 1,022) is withheld. This is a prepayment of Step 5, not an extra tax, unless it exceeds the liability and becomes a trapped credit.

Step 7. Trapped credits and inflation. The ARS 29,399,976.60 withheld in Step 2 is credited against VAT and income tax later. If the credits are used six months later and monthly inflation stays at 1.9% (the September 2026 INDEC figure, used here as an assumption), the real loss is 1 minus 1/1.019^6 = 10.68%, about ARS 3,139,544 (US$ 2,008). If VAT withholdings exceed the SRL's VAT debits, the balance can be very slow to use or recover (unconfirmed).

Step 8. Total.

Step 9. Comparison with a single VAT country. In the UK the same consultancy charges 20% VAT and accounts for it, crediting VAT on its costs; no tax on the bank account and no turnover tax were found on the official pages downloaded (gov.uk VAT rates). Registration is required above £90,000 of taxable turnover in 12 months (gov.uk). In Singapore the GST rate is 9% (iras.gov.sg); in Estonia 24% (emta.ee). In each case VAT is neutral for a fully taxable business. Domestic B2B withholding of VAT or income tax was not found on those pages (unconfirmed). Result: the cascading final taxes on this flow are about 5.8% of revenue in Argentina against zero in a single VAT system, before income tax, plus a cash flow drag equal to almost a fifth of the invoice.

Practical traps

1. Assuming the SAS will register in 24 hours. The 24 hour term applies only with the registry's model bylaws, and automatic registration is suspended in the City (IGJ RG 12/2024 art. 3).
2. Letting the good standing certificate expire. Six months from issue to filing (IGJ RG 4/2026 art. 2). Order it last.
3. Forgetting the foreign parent's registration. A local company's acts are not registrable when the unregistered foreign shareholder's vote was decisive (IGJ RG 15/2024 art. 190).
4. No resident director at the right time. The board must have a resident majority from incorporation (LGS art. 256).
5. Mixing profit years in a dividend. Only profits from years starting on or after 1 Jan 2025 qualify under point 3.4.4.1; banks will ask.
6. Using MEP or CCL within 90 days of an official FX purchase by the company (point 3.16.3).
7. Holding service export receipts abroad. 20 business days to bring in and convert (point 2.2.1).
8. Withdrawing cash. Double bank tax for companies that are not micro or small (Law 25.413 art. 1).
9. Ignoring the supplier file. A supplier flagged in ARCA's file suffers 100% VAT withholding (RG 2854 art. 9).
10. Unregistered first week of work. Loses the probation period (LCT art. 92 bis).
11. Treating contractors as employees by default or vice versa. The LCT presumption has exceptions for invoiced professional services (LCT art. 23 as replaced), but misclassification remains a risk; see the labor page.
12. Budgeting 12 salaries. There are 13 (LCT art. 121).
13. Forgetting the 0.5% wealth tax on shares. The company pays it every year for its shareholders (Personal Assets Tax, article after art. 25).
14. Buying land near a border without checking the security zone (Decree Law 15.385/44 art. 4; Decree 253/2018 map).
15. Relying on DNU 70/2023 without a backup. Several of its provisions have been challenged; check current status before relying on it for a large transaction (unconfirmed).
16. Exchange rate in contracts. A US dollar clause is now enforceable in that currency (CCyC art. 765 as replaced), but payment still depends on access to dollars; specify the payment mechanism.

Recent changes

• 22 Sep 2026. IGJ RG 11/2026: incorporations no longer need precalification; SAS purpose may be "any lawful activity"; relaxed proof of contributions.
• 3 Jun 2026. Decree 423/2026: grain export duty reductions, with monthly schedule to December 2028.
• 3 Jun 2026. ARCA RG 5855/2026: treaty residence certificates, 12 month validity, apostille unless verifiable online.
• 26 May 2026. IGJ RG 4/2026: single requirements list for foreign companies under LGS arts. 118 and 123; joint filing with the local company; 120 days for branch statements; simplified evidence of bylaw changes.
• 6 Mar 2026. Law 27.802: severance base and cap, exclusive remedy, CPI plus 3% for labor credits, instalment payment of judgments, union contribution caps, FAL and RIFL.
• 1 Jan 2026. Uruguay stops new "Empresa en el Día" incorporations (Uruguay Decree 212/025, art. 1), a reminder that fast tracks abroad also change.
• 2025. BCRA reopened access to foreign currency for resident individuals and freed dividends for 2025 onward (Com. A 8226 and later). Export duties on many goods set at 0% (Decree 305/2025 and others).
• 8 Jul 2024. Law 27.742: longer probation, repeal of unregistered work fines, RIGI; Law 27.743: personal assets tax cuts to 0.25% by 2027.
• 2024. SA minimum capital raised to ARS 30,000,000 (Decree 209/2024); SA supervision threshold ARS 2,000,000,000 (MJ Res. 10/2024).

Pending changes

FAQ

1. Can I set up an Argentine company in one day, as in the UK? Not reliably. The SAS has a 24 hour statutory registration term with model bylaws (Law 27.349 art. 38), and a 24 hour CUIT (art. 60(2)), but the City registry reviews files because automatic registration is suspended (IGJ RG 12/2024 art. 3). An SA needs a public deed and registry control (LGS arts. 165 and 167). The UK registers online usually within 24 hours for £100 (gov.uk).

2. Do I need Argentine resident directors? Yes. An SA needs an absolute majority of directors with real domicile in Argentina (LGS art. 256); an SAS needs at least one resident administrator (Law 27.349 art. 51).

3. Can my Argentine subsidiary pay dividends to the parent? Yes, freely through the official FX market for profits from audited annual statements of years starting on or after 1 January 2025, within the amount approved by the shareholders' meeting and with the external survey filed (BCRA point 3.4). Older profits need another route or prior BCRA approval. A 7% dividend withholding applies (Income Tax Law art. 97), subject to treaties.

4. What is the bank tax and can I avoid it? A 0.6% tax on each credit and each debit to Argentine bank accounts (Law 25.413; Decree 380/2001 art. 7). Some movements are exempt, such as transfers between accounts of the same holder; 33% is creditable against income tax. It is in force until 31 December 2027 (Law 27.702).

5. Why do I pay a turnover tax if I already charge VAT? Because gross income tax is a provincial tax on gross receipts, separate from national VAT, with no input credit (Law 23.548 art. 9(b)(1); Convenio Multilateral). Caps agreed in the 2021 fiscal pact are 5.00% for commerce and business services and 1.50% for manufacturing (Law 27.687 Annex).

6. Can I dismiss an employee at will? Only during the six month probation period (LCT art. 92 bis). After that, dismissal without cause requires severance of one month per year or fraction above three months (minimum one month) and notice of one or two months (LCT arts. 231 and 245).

7. Do I have to join a union or an employers' chamber? No, but homologated collective agreements apply to all workers and employers in their scope regardless of membership (Law 14.250 art. 4 as replaced). Contributions under agreements to unions are capped at 2% of pay and to employer bodies at 0.5% (art. 9 as replaced).

8. How long are foreign documents valid for the registry? The good standing certificate must be no older than six months on filing (IGJ RG 15/2024 art. 164 as replaced). Documents must be apostilled or legalised and translated by an Argentine registered public translator (art. 34(6)).

9. Is there a wealth tax on my shares in the Argentine company? Yes, the company pays 0.5% of the equity value of the shares every year as a single and final payment on behalf of all shareholders, including foreign companies, and may recover it from them (Personal Assets Tax, article after art. 25).

10. Can a foreigner buy farmland? The rural land law that limited foreign ownership was repealed by DNU 70/2023 art. 154. Land in border security zones still needs authorisation (Decree Law 15.385/44 art. 4). Because DNU 70/2023 is a decree of necessity and urgency, check its current legal status before a large purchase (unconfirmed).

11. Do I have to go to court mediation before suing a supplier? Yes, in most civil and commercial cases before the national courts, mediation is mandatory before filing and lasts up to 60 days (Law 26.589 arts. 1 and 20). Many contracts choose arbitration instead.

12. Do I need to visit ARCA in person? Legal representatives must validate their identity biometrically. With an Argentine DNI card this can be done by facial recognition in the ARCA app; otherwise in person at an ARCA office by appointment (RG 2570 art. 20 for customs registers; RG 2811 for the general procedure, text not in sources) (unconfirmed).

Primary sources

• Law 19.550, General Companies Law, t.o. 1984, updated text (arts. 4, 10, 61, 118, 123, 165, 166, 167, 186, 187, 256, 258, 299)
• Law 27.349, SAS (arts. 33 to 62), updated text
• Civil and Commercial Code, Law 26.994 (arts. 320 to 323, 765, 1017)
• DNU 70/2023 (arts. 154 and 250), Boletín Oficial 21 Dec 2023
• IGJ General Resolution 15/2024 (Annex A arts. 7, 34, 164, 168, 175, 190, 203, 414, 421), updated text
• IGJ General Resolution 4/2026 (BO 26 May 2026)
• IGJ General Resolutions 12/2024 (BO 11 Apr 2024), 7/2026 (BO 1 Jul 2026), 11/2026 (BO 22 Sep 2026)
• IGJ, SAS information page
• IGJ, fee slips (Decision 46/2001)
• Law 25.413, tax on bank credits and debits, updated text
• Decree 380/2001, regulation (arts. 7, 13), updated text
• Law 27.702 (BO 30 Nov 2022)
• Law 27.541 (arts. 19, 22, 23, 45), updated text
• Law 23.548, federal tax sharing, updated text
• Convenio Multilateral (arts. 1, 2, 35)
• Law 27.687, Consenso Fiscal 2021 and Annex rate table
• Comisión Arbitral RG CA 104/2004 (SIRCREB) and RG CA 6/2023
• RG 2854/2010, VAT withholding (arts. 8, 9), updated text
• RG 830/2000, income tax withholding (Annex VIII), updated text
• Income Tax Law, t.o. 2019 (arts. 97, 106)
• Law 23.966 Title VI, Personal Assets Tax (art. 25; unnumbered article after art. 25), updated text
• ARCA RG 5855/2026, treaty residence certificates (BO 3 Jun 2026)
• ARCA RG 2570/2009 (art. 20, biometrics), updated text, and RG 5835/2026 (point 13.4)
• Decree 423/2026, export duties (BO 3 Jun 2026) with annexes
• BCRA, Exterior y Cambios consolidated text updated to 14 Sep 2026 (points 2.2, 3.4, 3.8, 3.16.3, 7.1)
• BCRA Com. A 8226
• BCRA, Depósitos de ahorro consolidated text (point 3.1.4, UVA)
• Employment Contract Law 20.744, updated text (arts. 20, 92 bis, 121, 122, 231, 232, 233, 245, 276, 277)
• Law 27.802, Labor Modernisation (BO 6 Mar 2026)
• Decree 1228/2026 (FAL start date)
• Law 23.660 (art. 16), Law 24.241 (art. 11), Law 19.032 (art. 8), Law 24.557
• ANSES Resolution 257/2026 (contribution base, art. 3)
• Law 26.589, mandatory mediation, updated text (arts. 1, 20)
• Decree Law 15.385/44, border security zones, updated text (art. 4)
• Decree 253/2018, border zone map
• Law 26.737 (Infoleg record showing abrogation by DNU 70/2023 art. 154)
• Law 25.871, Migration Law, updated text
• Decree 584/2024 (UMSM, art. 2) and DNM fee table
• DNU 366/2025
• DNU 681/2026
• INDEC, CPI September 2026
• UK, register your company (online £100, usually within 24 hours; post £124, 8 to 10 days)
• UK, Companies House fees
• UK, choose directors and company secretary
• UK, VAT rates (standard 20%)
• UK, register for VAT (threshold £90,000)
• UK, statutory redundancy pay (2 years' service; cap £751 a week; maximum £22,530 from 6 Apr 2026)
• US, IRS, get an EIN (online, free, immediate)
• US, IRS Topic 751, Social Security and Medicare (6.2% plus 1.45%; 2026 wage base US$ 184,500)
• Singapore, ACRA service and transaction fees (S$15 name, S$300 registration)
• Singapore, IRAS current GST rate (9%)
• Chile, ChileAtiende, Tu Empresa en un Día (online, no cost)
• Uruguay, IMPO, Decree 212/025 (end of "Empresa en el Día" for new incorporations from 1 Jan 2026)
• Brazil, gov.br Mapa de Empresas (average 22 hours to open a company)
• Estonia, Tax and Customs Board, VAT (24% from 1 July 2025)
• Not downloaded (blocked or script rendered): Delaware Division of Corporations fee schedule

Related pages

• SAS
• Bank tax
• Gross income tax
• Withholdings
• Payroll contributions
• Exchange controls
• Employment contracts and severance
• Personal assets tax
• Treaties
• Visas and residence
• Foreign ownership of real estate
• Arbitration
• Customs duties
• AML and KYC