The Australian-Argentine Double Taxation Agreement came into effect in 1999, and is for the avoidance of double taxation to income flowing between Australia and Argentina. This Agreement assists Australian companies with subsidiaries or branches in Argentina to be taxed in Argentina and in Australia for the incomes generated by their foreign operations, and vice-versa.
A surcharge of 0.5 per cent called 'statistical tax' applies to most imports coming from third countries. However, there is a maximum amount for this tax (US$500 for imports exceeding US$100,000).
A value added tax (VAT) of 21 per cent, assessed on the duty-paid value, is applied to most goods. A reduced rate of VAT applies to many agricultural and mining products, medicines, educational materials and certain chemicals. Some basic products such as bread, milk, newspapers and books are exempt from VAT.
An additional nine per cent or 10 per cent VAT must be paid for all goods imported for resale.
Three per cent anticipated profits tax on all retail goods is paid, unless goods imported by direct users.
Most provincial governments also apply a similar rate on most goods, known as Gross Income Tax. The tax varies in each province.
Federal excise taxes are imposed on a number of products including:
- Cigarettes - 60 per cent
- Whisky - 12 per cent
- Hard liquor - 6 per cent
- Beer - 4 per cent
- Soft drinks - 4 per cent
- Microwave ovens - 17 per cent
- Electronic products - between 10 per cent and 24 per cent
Stamp tax is collected on sales contracts as a percentage of the value of the contract. Rates are dependent on the type of product being sold.
Motor vehicles are subject to an import surcharge. Special tax is applied to forest products and their derivatives (newsprint is exempted). Rates range from four per cent to 10 per cent assessed on the CIF value.
Fundacion Invertir has a more detailed explanation of the Argentine Taxation System, which can be complex at times.