Business Taxes and Financial Operations in Argentina

Managing Business Taxes in Argentina

When you want to establish a business in the city, you must register for Gross Income Tax.

Understanding Different Levies

• MLP (Silver City): Local governments do not charge taxes, but rather levies, the proceeds of which are earmarked for a particular purpose at the same rate.
• Services: Not required, may be provided by the state or by individuals. The amount payable depends on the use/consumption made.
• Taxes: Required by law; only the state may collect payments. The amount payable is the same for everyone, regardless of other aspects.

Simplified Tax Regime

Monotributo: A regime for small taxpayers that simplifies tax collection. If a person's annual sales do not exceed $144,000, they can enroll. This removes the need to register separately for VAT and income tax.

Value Added Tax (VAT)

VAT: A tax levied on consumption, of national character, that applies to the "sale of property," the realization of works on property, and the provision of most services. Businesses must register, report their sales and purchases, and pay the corresponding tax.

Essential Business Documents

• Remit: A document accompanying the merchandise sold, detailing the elements sent and the price. It can be:

  • Duplicate: Original for the seller (signed) and a copy for the buyer.
  • Triplicate: Original and a second copy for the buyer, and the first copy for the seller.
  • Third Copy: Original for the buyer, a second copy for the merchandise deposit, and another copy for the person hired for transportation.

• Invoice: A document that endorses a buy-sell operation. Types:

  • Invoice A: Triplicate - original and second copy for the buyer, first copy for the seller. Reports the amount of taxes separately from the total value.
  • Invoice B: Duplicate - original copy for the buyer and a copy for the seller. Taxes are included in the total.
  • Invoice C: Duplicate - original copy for the buyer and a copy for the seller. Does not charge VAT.

Seller and Buyer Categories

• Sellers: VAT-registered, exempt, monotributistas.
• Buyers: Registered, exempt, monotributistas, final consumers.

Special Invoice Types

• Invoice A: Requires payment to be deposited in the supplier's bank account, whose key is provided by AFIP.
• Invoice M: Requires consideration of VAT retention on payments.

Other Important Documents

• Debit Note: Informs the buyer of an increase in their debt (duplicate).
• Credit Note: Informs the buyer of a decrease in their debt (duplicate).
• Account Statement: Details all movements in the business checking account and the account balance, including invoices, debit notes, credit notes, and receipts.
• Receipt: A document where a person records having received something, usually money. Signed by the recipient (duplicate), e.g., rent, wages, commonly called "received."

Banking Operations

Banks offer various services, including:

• Safekeeping in safe deposit boxes (one key for the customer and another for the bank).
• Receiving money from individuals.
• Lending money.
• Collecting taxes, paying salaries, purchasing and selling foreign currency, and other services.
• Issuing credit cards.
• Providing bank accounts: current accounts, savings accounts, and time deposits.

Fixed Term Deposits

• Nominative: In the name of a specific person.
• Bearer: Payable to the bearer.

The bank sets a minimum amount for fixed-term deposits. They can be in the name of one or more people, and the deposit slip is signed.