Because freelancers are not our employees and we don't pay taxes on payouts, they must declare any income received through Solar Staff by themselves.
To carry on tax accounting in Argentina for your Solar Staff income, you need to:
be a tax resident
obtain a tax ID code
choose a form of doing business
Tax residence in Argentina
Argentina taxes its residents on their worldwide income, while non-residents are taxed on Argentine-source earnings only.
The following persons are considered tax residents:
Argentine nationals living in Argentina.
Argentine nationals working abroad during the first 13 months of living abroad, or when they have obtained a permanent residence for migration purposes in a foreign country.
Foreign nationals assigned to work in Argentina for more than five years.
Foreign individuals residing in Argentina (for reasons other than work) for more than 12 months, as of the 13th month of presence in Argentina.
Non-residents include foreign nationals assigned to work in Argentina for less than five years.
Tax ID code
Argentina's Unique Tax Identification Code (Clave Única de Identificación Tributaria, CUIT) is an 11-digit number used in tax reporting and payment, for opening bank accounts and receiving payments to a bank account through Solar Staff, and so on. There are two ways to obtain CUIT (both free):
Online application (requires an Argentine ID)
In-person application (only for minors and foreigners in the process of getting a residence permit)
Argentina also has the Unique Labor Identification Code (CUIL – Código Único de Identificación Laboral), which is a personal 11-digit number granted by the National Social Security Administration (ANSES). It is needed for receiving social security benefits and registering contributions as part of formal employment.
Freelancer in Argentina: taxes, deductions, and contributions
Tax liabilities in Argentina depend on the freelancer's status and/or fulfillment of certain conditions. Read on for more details.
Monotributo is Argentina's most popular tax regime among private sector players (and the only one available to non-residents). You can register as a monotributista online. The tax liabilities are as follows:
Monotributo is a simplified tax regime for small taxpayers that combines VAT, income tax, social security, retirement contributions, and contributions to the National Health Insurance System (obra social) in a single monthly payment.
In order to be a monotributista, you need to meet the following requirements:
If you provide services (applicable to Solar Staff), your annual gross income can't exceed USD 3,276,011.15
If you sell goods, your annual gross income can't exceed USD 4,662,015.87
If you sell goods, the maximum price per unit can't exceed USD 49,646.21
You've not done any imports in the past 12 months
There are several types of monotributo. These are the ones that apply for Solar Staff income (provided all the requirements are met):
Como trabajador independiente
Taxpayers must issue electronic invoices (excluding VAT).
If your activity is not covered by monotributo, or if you exceed any of the limits, you must switch to the general regime. Note that before reapplying for monotributo, you have to stay on the general regime for 3 years.
The general regime (Régimen General) regulates the activities of self-employed individuals and legal entities (entrepreneurs). They are subject to profit tax, VAT, and some other payments. The tax liabilities are as follows:
Income tax (Impuesto a las Ganancias) is levied on taxable income and calculated in Argentine pesos (ARS) at a progressive rate (as at 2023):
Taxable income, ARS | Tax rate, % |
up to 173,834.61 | 5 |
173,834.61–347,669.23 | 9 |
347,669.23–521,503.84 | 12 |
521,503.84–695,338.47 | 15 |
695,338.47–1,043,007.68 | 19 |
1,043,007.68–1,390,676.90 | 23 |
1,390,676.90–2,086,015.35 | 27 |
2,086,015.35–2,781,353.85 | 31 |
from 2,781,353.85 | 35 |
All incurred expenses are eligible for deduction, except for living expenses and personal and family expenses (only retirement and other social security contributions).
The tax is paid online. Income tax that's specified in the tax return must be paid no later than the day following the tax return filing (based on your CUIT). You must also make monthly advance tax payments.
Tax reporting for the calendar year is to be filed electronically until June 30 of the year following the reporting one.
Value-added tax (Impuesto al Valor Agregado, IVA) is calculated at the rate of 21% (for certain activities – 10.5% or 27%) and is paid based on monthly tax returns. Key points to remember:
VAT return must be filed before the 20th day of the month following the reporting one, and paid within the same period
Here you can find step-by-step instructions on filing a VAT return
Some activities, services, and goods are exempt from VAT (learn more)
All taxpayers are required to issue electronic invoices and keep a digital VAT book
Certain micro, small and medium enterprises are eligible for VAT exemption
The self-employed are divided into five categories based on their monthly income, which then serve to determine pension contributions (presumed income or fixed amount, more here).
The Law (Ley de Sostenimiento e Inclusión Fiscal para Pequeños Contribuyentes) sets out benefits for those who decide to deregister as a monotributista (learn more).
IMPORTANT! Solar Staff does not have the option to choose a tax status for freelancers based in Argentina, but you can fill in your tax ID in your account.
PROVINCIAL TAXES
In Argentina, taxes are levied on both the federal (listed above) and provincial levels. These taxes are imposed by each of the 24 jurisdictions that make up Argentina. The tax liabilities are as follows:
Gross income tax is levied on freelancer turnover at the average rate of 3–5%. Some provinces have set forth exemptions for services that are economically used abroad. This tax only covers those engaged in independent activities, not the formally employed. To learn more, go here.
Stamp duty applies mainly to contracts, agreements, and other instruments. The average rate is 1% of the economic value of the instrument.
Solar Staff: payments to Argentine bank accounts
Payments to a bank account in Argentina made through Solar Staff are subject to tax withholding. This is required by the country's tax agent legislation regarding organizations that pay out income to Argentine tax residents on behalf of third parties, including foreign legal entities.
The tax is withheld by Solar Staff's payments partner based on the freelancer's tax data before being remitted to the Argentine tax authority (AFIP). Because of that, freelancers are asked to enter their CUIL or CUIT when linking a bank account.
Important: The name of the bank account's beneficiary must match the name in the Solar Staff account. Also, the CUIL or CUIT must belong to the bank account holder and Solar Staff account owner.
The tax is withheld on the following terms:
Registered payers (who have CUIT) – 0.5% VAT + 0.5% income tax (tax credit).
Unregistered payers (who don't have CUIT) – 10.5% VAT and 2% income tax, subject to the following conditions:
Payments for the month equal or exceed ARS 50,000
10 or more transactions/payments per month
Monotributistas or those who have a VAT and income tax exemption certificate – 0%.
Additional info
Tax exemptions (income received through Solar Staff is not exempt).
Online payment methods for different taxes based on the status.
Income received through Solar Staff is declared based on certificates and invoices.
Argentina has double taxation agreements with a number of countries (learn more).
If you have any questions, get in touch via the chat in your Solar Staff account, or email [email protected].