The Federal Administration of Public Income is usually shortened as AFIP is the revenue service of Argentina. It administers taxation in Argentina. The AFIP made an agreement with the American IRS to share information in 2017.

The AFIP is a workplace under the Ministry of Economy. A revenue service, revenue agency, or taxation authority may be an agency liable for the intake of state revenue, including taxes and sometimes non-tax revenue. Depending on the jurisdiction, revenue services could also be charged with the collection, investigation of evasion, or completion of audits.

Taxation in Argentina

As a result of the lack of a tax code in Argentina, the tax regulation takes place in accordance with separate laws, which, in turn, are supplemented by provisions of normative acts adopted by the executive authorities. The powers of the chief authority include levying a tax on profits, property, and added value throughout the national territory. In Argentina, the tax program is implemented by the Federal Administration of Public Revenue, which is subordinate to the Ministry of Economy. The Federal Administration of Public Revenues (AFIP)is an independent service, which includes: the overall Tax Administration, the overall Customs Office, and therefore the General Directorate for Social Security. It sets the important legitimate norms for the calculation, payment, and administration of taxes.

• Taxes levied on operations administered on the national territory of the country and in marine areas fully covered by the national tax policy;
• Infliction of taxes on import and export operations, regulated by tax laws and customs regulations;
• Corresponding deductions for social security.

The tax year is the financial year which may be the civil year or another period covering 12 months. The administration of taxes functions on a self-assessment system and therefore the ruling is protected only by a binding consultation system. Below are federal taxes which are used in Argentina:

1. Taxes on income, profit, and capital gains: tax in Argentina is collected solely by the government of Argentina, to the exclusion of the provinces. Argentina features a tax on income that’s collected as a deferred tax. It also features a flat-rate tax on business income (corporate tax) – 35%. There is a stamp tax of 1.5% on the total value of the real property, whether it gained or lost value, as opposed to just 1.5% applied only to realized capital gains. There is also a billboard Valorem land tax on other assets like vehicles. 
2. VAT: the quality rate, currently 21%, is charged on the internet price of the transaction. The special rate of 27% is applied to services like water, natural, gas, power, and communication services. A reduced rate of 10.5% is levied on some capital goods. Exports of products and services are zero-taxed because outputs aren’t with taxation and inputs are often reclaimed.
3. Excise taxes on electronics, tobacco, alcohol, soft drinks, perfumes, jewelry, precious stones, vehicles, tires, mobile services, insurance policies, gasoline, lubricating oils, and other items.;

In Argentina, there are two modes of taxation, regulated by AFIP – a general regime and a simplified legal system. Taxpayers who are subject to taxation under the overall regime are recognized as individuals or legal entities that pay the subsequent taxes: profit tax, VAT, the minimum expected profit tax, personal estate tax, and the other internal tax that is subject to collection and control by the Federal Administration of Public Revenue. The essence of simplified taxation is the establishment of one tax consisting of two components: an integrated tax and a predetermined amount. On specific categories, the integrated tax is set up on the grounds of such indicators as:

• Gross income.
• The room space.
• Electricity consumption.
• Rent.

Government of Argentina

The usage of the uncomplicated taxation system by organizations provides for their exemption from the obligation to pay income tax, VAT, contributions to the Argentine pension system (SIPA), and contributions to the National Health Insurance System.

In recent years, Argentina’s Federal Administration of Public Revenue -AFIP- has been working to consolidate its strategy for the administration of taxpayers and the management of tax collection. To do so, it has adopted a model based on the segmentation of taxpayers, either by business sector or their fiscal importance. Since 2014, the AFIP has focused on the development of more and better “extensive tax collection controls”.

In order to strengthen the aspects linked to risk management related to management, service, and control processes, within the framework of the exchange undertaken with the Guardia di Finanza, it managed to know about cutting-edge mechanisms for threat analysis as part of the scheduling of controls and the functioning of the different computer applications necessary for this analysis. Similarly, there have been exchanges on criteria for creating specific projects and operating plans for sectors of taxpayers.

Location address

The contact and location details of the Argentina Federal administration of Public Revenue are as follows:

Location: Buenos Aires, Argentina.

Homepage: http://www.afip.gov.ar/

Phone: (54-1) 347-2000/345-6500.

Postal address:  Hipolito  Yrigoyen 370 – (1310) Buenos Aires .

Jurisdiction: Ministries of Revenue or Taxation.