Income tax (rates / brackets)

Argentina's income tax system operates on a progressive bracket structure designed to tax resident individuals and certain non-residents on worldwide income. The 2025 unified income tax scale establishes graduated rates that increase with taxable income, replacing the previous dual-track system. Taxable income includes employment earnings, business profits, investment returns, and other sources, with various deductions and exemptions available under Argentine tax law.

The income tax regime is governed by the Argentine Income Tax Law (Ley del Impuesto a las Ganancias, Law 20,628) and administered by the Federal Administration of Public Revenue (AFIP). The tax year runs from January 1 to December 31, with annual returns due by May 31 for most taxpayers.

Effective January 1, 2025, Argentina introduced a new unified income tax scale consolidating previous bracket structures. This reform simplifies the calculation methodology and adjusts rate thresholds to reflect inflation and economic conditions. The new scale maintains progressivity while reducing administrative complexity for employers and payroll processors.

Employers must withhold income tax from employee salaries based on the applicable bracket rates and file monthly withholding declarations with AFIP. Payroll teams must stay current with the 2025 unified scale rates and ensure accurate calculations on each pay period. Non-resident employees face different treatment under Argentine law and require separate withholding protocols. Annual reconciliation occurs when employees file their income tax returns, with adjustments made for over- or under-withheld amounts. Compliance with AFIP reporting requirements and timely remittance of withheld taxes remain mandatory obligations for all employers operating in Argentina.