Compliance Requirements for Foreign Corporations in Argentina

By EasyCo Updated October 9, 2026

Argentina, with its dynamic market and strategic location in South America, offers attractive opportunities for foreign companies looking to expand their operations. However, like any international venture, doing business in Argentina requires a thorough understanding of the local legal and regulatory landscape. Compliance with Argentina’s corporate and tax regulations is essential for avoiding penalties, safeguarding your business, and ensuring smooth operations.

In this comprehensive guide, we’ll outline the key compliance requirements for foreign corporations operating in Argentina, including corporate registration, tax obligations, labor laws, and reporting requirements. Whether you’re planning to open a branch, set up a subsidiary, or establish a joint venture, understanding these regulations is crucial for a successful business venture in Argentina.

1. Corporate Registration and Legal Structure

Before starting operations in Argentina, foreign corporations must choose an appropriate legal structure and register their entity with local authorities. Argentina offers several options for corporate structures, but the most common choices for foreign businesses include:

Sociedad Anónima (SA) – Corporation
This is the most common type of legal entity used by foreign corporations in Argentina. An SA is a joint-stock company, and the shareholders’ liability is limited to their share capital contribution. This structure is often chosen by large businesses due to its flexibility and the ability to issue different classes of shares.
Sociedad por Acciones Simplificada (SAS)
A simplified company that can have a single shareholder and a minimum capital of two monthly minimum wages. In Buenos Aires City it is incorporated online, and it is popular with startups and small foreign-owned companies.
Sociedad de Responsabilidad Limitada (SRL) – Limited Liability Company
The SRL is another popular option, especially for small and medium-sized businesses. In an SRL, the liability of each member is limited to their capital contribution. It offers simpler administrative requirements compared to the SA, making it more suitable for smaller operations.
Branch Office (Sucursal)
Foreign companies can also choose to establish a branch office in Argentina. A branch is not a separate legal entity, but rather an extension of the parent company. While the branch is subject to local laws and taxation, the parent company remains responsible for its liabilities.

Once the legal structure is chosen, foreign corporations must register with the Inspección General de Justicia (IGJ), the companies registry for Buenos Aires City, or with the registry of the province where the company is domiciled.

Key steps for corporate registration in Argentina:

Register the foreign parent with the registry: under article 123 if it will hold shares in a local company, or article 118 for a branch. In Buenos Aires City, IGJ General Resolution 4/2026 simplified both and allows filing together with the incorporation of the local company.
Obtain a CUIT for foreign partners and administrators through a representative in Argentina.
File the bylaws and proof of the capital contribution with the IGJ or the provincial registry, with management that meets the residency rules (at least one SAS administrator, or a majority of S.R.L. managers or S.A. directors, living in Argentina).
After registration, obtain the company CUIT from ARCA and register for national and provincial taxes.

Step by step: how to set up a company in Argentina.

2. Tax Compliance

Argentina’s tax system is complex, and foreign corporations must navigate various tax obligations to remain compliant. Taxes are managed by the Agencia de Recaudación y Control Aduanero (ARCA), which replaced AFIP in 2024, and the key tax requirements for foreign companies include:

Corporate Income Tax (Impuesto a las Ganancias)
Foreign corporations operating in Argentina are subject to corporate income tax on profits derived from their Argentine operations. The rate follows a progressive scale of 25%, 30% and 35%; for fiscal years starting in 2026, the 35% rate applies to taxable income above ARS 1,335,141,857.38. It’s essential to note that Argentina follows a worldwide income principle, meaning that both Argentine-sourced and foreign-sourced income may be subject to taxation, depending on the nature of the business entity.
Value-Added Tax (VAT – Impuesto al Valor Agregado)
VAT applies to the sale of goods and services within Argentina, with a standard rate of 21%. Certain goods and services, such as pharmaceuticals, have a reduced VAT rate of 10.5%. Businesses must file VAT returns monthly and pay the corresponding amount to ARCA.
Withholding Taxes
Argentina imposes withholding taxes on certain payments to foreign entities, including dividends, interest, royalties, and fees for technical assistance. The rates vary depending on the nature of the payment and the existence of any double taxation treaties between Argentina and the country of the foreign corporation. Dividends paid to foreign shareholders carry a 7% withholding.
Transfer Pricing
Argentina’s transfer pricing regulations require companies to conduct transactions with related parties at arm’s length. This means that the prices charged in these transactions should be the same as if they were conducted between unrelated parties. Companies must submit annual transfer pricing reports to ARCA to demonstrate compliance.
Gross Revenue Tax (Impuesto sobre los Ingresos Brutos)
In addition to national taxes, businesses in Argentina may be subject to provincial and municipal taxes. The gross revenue tax is a provincial tax imposed on companies based on their turnover, with rates varying by province and industry.

3. Labor Law Compliance

Foreign corporations operating in Argentina must comply with the country’s labor laws, which are heavily regulated to protect employees’ rights. Key labor compliance requirements include:

Employment Contracts
Every employee must be registered with ARCA from the first day of work, and fixed-term contracts must be in writing. Contracts can be for an indefinite period, a fixed term, or for temporary employment. Employers must clearly state the terms of employment, including salary, working hours, benefits, and conditions for termination.
Minimum Wage and Working Hours
Argentina has a national minimum wage, which is periodically updated by the government. From 1 October 2026, the minimum wage is ARS 391,200 per month. The standard workweek is 48 hours, with any additional hours considered overtime, which must be paid at a higher rate.
Social Security Contributions
Both employers and employees in Argentina must make contributions to the country’s social security system, which covers pensions, healthcare, unemployment, and workers’ compensation. Employer contributions depend on the company size and activity and are calculated on each employee’s gross salary, while employees contribute 17%. Contributions are filed and paid monthly to ARCA.
Severance Pay
Argentina has strict labor laws concerning employee termination. If an employee is dismissed without just cause, they are entitled to severance pay, which is calculated based on the employee’s length of service and salary. The severance payment is typically one month’s salary for each year of service.

4. Financial Reporting and Accounting Standards

Foreign corporations in Argentina must comply with specific financial reporting and accounting standards. These regulations ensure transparency and allow for oversight of business activities. Some of the key requirements include:

Statutory Financial Statements
Companies operating in Argentina are required to prepare and file annual financial statements in accordance with the Argentine Generally Accepted Accounting Principles (GAAP). These statements must include a balance sheet, income statement, cash flow statement, and accompanying notes.
External Audit Requirements
Large companies and corporations, particularly those operating as SAs, are required to have their financial statements audited by an independent external auditor. Where required, the audited financial statements are filed each year with the IGJ or the provincial registry.
Monthly and Annual Reporting
In addition to annual financial statements, businesses must file monthly tax returns for VAT, payroll, and income tax advances with ARCA. Companies must also submit annual tax returns detailing their income, expenses, and tax obligations for the fiscal year.

5. Foreign Exchange Controls

Argentina has had foreign exchange controls for years, eased significantly since April 2025, and businesses must comply with these regulations when transferring funds in and out of the country. Foreign companies must navigate these controls to repatriate profits, pay dividends, or settle debts with foreign entities.

Since April 2025 (BCRA Communication “A” 8226), companies can buy foreign currency to pay dividends to non-resident shareholders out of audited, realized profits from fiscal years starting on or after 1 January 2025, up to the amount approved by the shareholders’ meeting. Earlier profits are not covered by this rule, and companies must keep their reporting to the Central Bank of Argentina (BCRA) on foreign assets and liabilities up to date.

Operating a foreign corporation in Argentina offers many opportunities, but it also comes with a complex set of compliance requirements. From corporate registration and tax obligations to labor law compliance and financial reporting, understanding the legal and regulatory landscape is crucial for long-term success. By staying compliant with Argentina’s corporate regulations, foreign companies can mitigate risks, avoid penalties, and establish a strong foundation for growth in one of South America’s largest economies.

For businesses looking to enter the Argentine market, partnering with local legal and tax experts is often essential to ensure full compliance with all relevant regulations.

Get Assistance from Easyco Experts!

Easyco handles company formation, tax, accounting, payroll and legal representation in Argentina. Read how to set up a company in Argentina or contact us for a quote.

At Easyco, we make company formation in Argentina easy; our team of corporate experts has vast experience helping companies and individuals register their business in Argentina, with a proven track record of success across all of our services. Easyco aims to tackle the complex company formation processes across LATAM. We make business registration easy by handling the process for you. Start your company in Argentina today!

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