Small Business Tax in Argentina

Argentina structures small-business taxation around a binary choice: the Monotributo simplified regime for operations below defined revenue ceilings, and the general regime for larger or more complex businesses. Understanding which track applies — and when transition becomes obligatory — is central to compliant operation in Argentina.

All federal tax administration in Argentina is handled by ARCA (Agencia de Recaudacion y Control Aduanero), the agency formerly known as AFIP, which was renamed under Decree 953/2024. ¹

What is the Monotributo and who qualifies?

The Regimen Simplificado para Pequenos Contribuyentes, universally called the Monotributo, allows sole traders, freelancers, and very small businesses to replace three separate federal obligations — Impuesto a las Ganancias (income tax), Impuesto al Valor Agregado (VAT), and social security contributions (jubilacion and obra social) — with a single fixed monthly payment. Enrollment and categorisation are administered entirely through ARCA's online portal. ¹

As of 1 February 2026, the regime spans eleven categories, A through K, indexed every six months to the Consumer Price Index (CPI). Since 2026, both service providers and goods sellers can register through Category K; the previous rule capping service providers at Category H was abolished. The table below shows current thresholds and monthly obligations (February–July 2026 period): ¹

The monthly payment bundles three components: an impuesto integrado (tax component replacing both income tax and VAT), a jubilacion aporte (retirement pension contribution to SIPA), and an obra social aporte (health-insurance contribution). Monotributistas issue electronic invoices through ARCA and are not required to charge VAT separately to customers. Recategorisation is obligatory twice a year — in January and July — based on the prior twelve months of gross income. Businesses that exceed Category K limits are automatically expelled and must migrate to the general regime.

How does the general regime corporate income tax work?

Businesses operating outside the Monotributo — because their revenue exceeds Category K, they have multiple partners, or they operate as an SA (Sociedad Anonima), SAS (Sociedad por Acciones Simplificada), or SRL (Sociedad de Responsabilidad Limitada) — pay Impuesto a las Ganancias under the general regime. ²

For fiscal years from 1 January 2025 onward, the corporate rate is progressive across three brackets (thresholds indexed annually for inflation): ²

• 25% on taxable profits up to ARS 133,514,186
• 30% on the portion between ARS 133,514,186 and ARS 1,335,141,857 (plus ARS 33,378,546 on the base)
• 35% on profits above ARS 1,335,141,857 (plus ARS 393,866,848 on the base)

Dividend distributions to individual shareholders carry a 7% withholding tax. Argentina applies mandatory inflation adjustment (actualizacion impositiva) to depreciation and inventory costs, which affects the real taxable base in periods of high inflation. Self-employed individuals (autonomos) operating in the general regime file personal income tax returns on net income at progressive rates of 5% to 35% and pay separate autonomous social security contributions to ARCA across five income categories (Categories I–V), with monthly contribution amounts updated by ARCA periodically. ³

For the general regime, VAT at 21% must be charged on most sales and services. Taxpayers deduct input VAT paid on purchases and remit the net balance monthly. A reduced rate of 10.5% applies to certain goods (livestock, agricultural inputs, some construction) and a 27% rate applies to utility services such as telecommunications, gas, and electricity supplied to commercial users. ²

What benefits does PyME (MiPyME) registration provide?

Businesses in the general regime that qualify as micro, small, or medium enterprises can register in the Registro MiPyME maintained by the Secretaria de la Pequena y Mediana Empresa. Certification is free, entirely online, and valid until 30 April of the following year for businesses with a 31 December fiscal year-end. ⁴

The most material fiscal benefits are: ⁴

• 90-day VAT deferral: micro and small enterprises pay VAT in the second month following the normal due date, substantially improving cash flow in VAT-positive months.
• Check-tax (impuesto a los debitos y creditos bancarios) credit: micro and small enterprises can offset 100% of bank-debit-and-credit tax paid against Ganancias obligations; medium enterprises (Tramo 1) can offset 60%.
• Reduced employer contributions: all registered MiPyMEs pay employer social security contributions at an 18% rate (below the standard rate).
• Faster credit-card settlement: micro and small enterprises receive credit card proceeds within 8 business days and prepaid card proceeds within 2 business days.
• Exemption from additional perception regimes: under ARCA General Resolution 5807/2025, registered MiPyMEs are excluded from additional VAT and Ganancias perception regimes on imports of certain inputs through at least 30 June 2026. ⁴

PyME registration does not change the income tax rates that apply; it modifies timing and ancillary levy treatment only.

What is Ingresos Brutos and how does it affect small businesses?

Ingresos Brutos (IIBB) is a provincial-level gross-receipts tax levied on the revenue of virtually all commercial and professional activities. Each of Argentina's 23 provinces and the Ciudad Autonoma de Buenos Aires (CABA) administers its own IIBB with distinct rates, exemptions, and filing calendars. Monotributistas are generally exempt from IIBB at the federal level but may owe provincial IIBB separately depending on the jurisdiction. ³

Typical IIBB rates for trade and services range from 4% to 6% of gross turnover; manufacturing activities generally pay lower rates of 0% to 2%. Because IIBB is computed on gross revenue before any deductions, its effective burden on low-margin businesses can exceed that of corporate income tax on net profits. Businesses operating across multiple provinces must apportion revenue under the Convenio Multilateral framework to avoid double-taxation and file consolidated IIBB returns. ³

ARCA has no jurisdiction over IIBB; each province's Direccion de Rentas (or equivalent) is the administering authority. A small business owner in Buenos Aires Province, CABA, and Cordoba simultaneously must comply with three separate IIBB filings. This is among the most operationally complex aspects of Argentine taxation for growing small businesses.

How does a small business choose between Monotributo and the general regime?

The choice is largely statutory: Monotributo is available only while annual gross income stays below ARS 108,357,084 (Category K ceiling, February 2026). Once revenue exceeds that threshold — or once the business takes on a corporate form that precludes Monotributo enrollment, such as an SA with multiple shareholders — migration to the general regime is mandatory.

For sole traders and micro-businesses operating below the ceiling, Monotributo is generally administratively simpler: one monthly payment, no separate VAT filings, and no quarterly income tax advance payments. The tradeoff is that the monthly payment does not vary with profitability — a Monotributista in a loss-making month pays the same as in a profitable one.

For growing businesses approaching the Category K threshold, the jump in compliance obligations (monthly VAT, quarterly Ganancias advances, separate IIBB filings, payroll contributions at full rates) can be substantial. Coordination with a qualified tax professional is important when annual billing approaches ARS 80-90 million, to ensure the transition is managed correctly and PyME registration is obtained promptly to access the 90-day VAT deferral. Argentina country overview lists vetted local practitioners. For cross-border or US-filing needs, Tax1099 supports international information-return preparation.

All figures cited are current as of June 2026 and subject to semiannual CPI adjustment by ARCA. Businesses should verify current thresholds at afip.gob.ar/monotributo/categorias.asp before making filing or categorisation decisions, and should consult a qualified tax professional for circumstances specific to their operations.