The 2022 FIFA World Cup victory was just the type of news the embattled Argentina needed. With inflation at a record high and economic growth expected to slow this year, the third-largest economy in Latin America is still searching for macroeconomic stability. Despite the hardship, the government is seeking reforms with an IMF-supported program, and rich natural resources offer massive potential for further development.
Local Bank Acct.
Of Gross Salary
13th & 14th
Good to Know
- Relationship-driven hierarchies characterize the business culture in Argentina. Decisions tend to be made at the top before slowly moving down the ranks for approval. Deference to seniority is also expected. Developing personal relationships with local representatives can help build a strong business foundation.
- Argentina has a highly educated and well-trained workforce as well as a growing entrepreneurial class. The wealth of talent has contributed to the rise of software and disruptive technologies. Some of the region’s largest tech companies by market cap were founded in Argentina.
- The most important taxes levied on companies doing business in Argentina are, at a national level, the Income Tax, the Added Value Tax (VAT), the tax on sales, and the tax on bank debits and credits, as well as contributions to social security.
Although the government has introduced measures to reduce the bureaucratic procedure for foreigners, starting a business takes longer and costs more than the OECD average. If the shareholders are non-nationals, they need to register at the Office of Corporations (IGJ) as well as with the tax authorities before setting up a local company.
Taxes in Argentina are not only very high, filing taxes is time-consuming and requires significant resources. The complicated procedure involves more than 12 payments per year and typically demands in the excess of 400 hours of work.
The power of labor unions has declined somewhat in recent years although they still work hard for employee rights and often contest reforms. Labor laws are among the most expansive in the region. Argentinian employers must contribute over a third of an employee’s salary to pension and health care plans.
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