The Republic of Argentina’s rapidly-developing economy is becoming a magnet for foreign investment and international companies undertaking Global Expansion. The economy is seeing growth in pharmaceuticals, biotech, chemicals, renewable energy and manufacturing design alongside an already strong services sector and the traditional strengths of food production and agriculture. Natural resources include massive deposits of untapped mineral ores, including the world’s second-largest shale gas reserve and fourth-largest shale oil reserve. There are lithium deposits to capitalise on the growth of electric vehicle development.
The opportunities are there but come with challenges, and payroll services in Argentina are among the most demanding. Whether your company is planning to move staff abroad or hire employees in the new territory, you cannot risk mistakes operating in Argentina’s complex payroll and income tax regime, as it could cost you time and money. Foreign companies intending to run their employees’ payroll in Argentina must first set up a legal entity subsidiary. This is mandatory for dealing with the Federal Administration of Public Revenues, the Administración Federal de Ingresos Públicos (AFIP) and the National Administration of Social Security (Nacional de la Seguridad Social, ANSES), which operates under the Ministry of Health and Social Development.
A typical choice is the limited liability company in Argentina, a Sociedad de Responsabilidad Limitada, SRL, which needs two or more members or partners. The subsidiary will be regulated by the General Companies Act. However, this represents a significant move. Operating payroll in Argentina requires detailed practical knowledge of company, tax and employment legislation and staying up to date with regular changes to the rules.
However, there is an alternative and more straightforward route. Bradford Jacobs navigates these potential pitfalls effectively and efficiently. We recruit the staff in-country and then implement our comprehensive knowledge of tax and payroll regulations. As part of our service, we file returns and remit associated payments for tax and social security contributions directly from our payroll system to the relevant authorities. New staff members can be up-and-running in days rather than weeks or months to establish a legal entity in Argentina.
Outsourcing payroll in Argentina will streamline your operations by dealing with the following:
- Register employees with the Federal Administration of Public Revenues, the Administración Federal de Ingresos Públicos (AFIP) for withholding payroll taxes and remitting to the AFIP.
- Obtain the employer’s 11-digit Unique Tax Identification Code (CUIT) – the fiscal code (clave fiscal) – from the AFIP.
- Obtain the Unified Labour Identification Code (CUIL) for social security. transactions of the employee.
- Register employees with the National Administration of Social Security (Nacional de la Seguridad Social, ANSES) for inclusion in the social security system.
- Obtain their DNI number (Documento Nacional de Identidad), frequently required when opening bank accounts and registering for internet and other services.
- Register the employment relationship in the Special Payroll Book, which is subject to inspection by the Ministry of Labour.
- Accounts and bookkeeping must be in the Spanish language.
- Drawing up written contracts for employees as a safeguard, although there is no mandatory requirement for contracts to be written or oral unless specified under a law or collective agreement.
