How to account and pay in Argentina

How to account and pay in Argentina
Written by
Ontop Team

As an expert in payments, navigating the financial landscape of Argentina requires understanding the local regulations, currency considerations, and payment methods available. Here’s a comprehensive guide on how to account for and make payments in Argentina:

Understanding Local Regulations in Argentina

Argentina's regulatory framework for financial transactions, foreign exchange, and taxation is critical for businesses to navigate effectively. Here’s an expanded overview to ensure comprehensive understanding and compliance:


The Argentine Peso (ARS) is the official currency used for most transactions within Argentina. Businesses must conduct transactions in pesos unless specific authorization permits otherwise. Here are key considerations regarding currency:

  • Currency Exchange: Argentina imposes strict controls on currency exchange, with regulations managed by the Central Bank of Argentina (BCRA). Foreign currency transactions often require authorization from authorized financial institutions, such as banks or currency exchange bureaus.
  • Exchange Rates: Exchange rates for converting foreign currencies into pesos are determined by the BCRA and may fluctuate based on economic factors and government policies.

Exchange Controls

Argentina's exchange controls are designed to manage foreign exchange operations and prevent currency speculation. Key points include:

  • Authorized Entities: Only authorized financial institutions can facilitate foreign currency transactions. These institutions ensure compliance with regulatory requirements and monitor currency flows.
  • Documentation Requirements: Businesses conducting international transactions must provide documentation and justification for foreign currency purchases or transfers. Transactions exceeding certain thresholds may require additional approvals or reporting to regulatory authorities.


Compliance with Argentina's tax laws is essential for businesses operating within the country. Key taxes to consider include:

  • Value Added Tax (VAT): Known as Impuesto al Valor Agregado (IVA), VAT applies to most goods and services at a standard rate of 21%. Businesses must register for VAT with the Federal Administration of Public Revenue (AFIP) and charge VAT on sales invoices.
  • Income Tax: Businesses are subject to corporate income tax (Impuesto a las Ganancias) on their annual profits. Income tax rates vary depending on the type of business and income levels. It’s crucial to accurately calculate and report income tax obligations to AFIP.
  • Withholding Taxes: Certain payments, such as dividends, interest, and royalties, are subject to withholding taxes at varying rates. Businesses must withhold and remit these taxes to AFIP on behalf of non-resident individuals or entities.

Compliance and Reporting

To ensure compliance with local regulations in Argentina, businesses should:

  • Stay Updated: Regularly monitor updates and changes in regulations issued by the BCRA, AFIP, and other relevant authorities.
  • Maintain Accurate Records: Keep detailed records of financial transactions, including invoices, receipts, and documentation related to tax filings and currency exchanges.
  • Engage with Professional Advisors: Seek guidance from local legal and financial advisors with expertise in Argentine regulations to navigate complexities and ensure compliance.

Payment Methods in Argentina

In Argentina, businesses have a variety of payment methods available to facilitate transactions efficiently and cater to the preferences of suppliers and clients. Here’s an expanded overview of the payment methods commonly used:

Bank Transfers (Transferencias Bancarias)

Bank transfers are a secure and widely used method for domestic transactions in Argentina. Key features include:

  • Security and Traceability: Bank transfers provide a secure way to transfer funds directly between bank accounts, ensuring transparency and traceability of transactions.
  • Usage: They are preferred for larger transactions, recurring payments such as salaries or rent, and payments requiring formal documentation.
  • Processing Times: Transactions are processed within banking hours and may take one to two business days for funds to be credited, depending on the banks involved.

Checks (Cheques)

Cheques remain a popular payment method in Argentina, though electronic alternatives are increasingly favored. Important considerations include:

  • Flexibility: Cheques can be postdated or predated to accommodate payment scheduling according to cash flow needs.
  • Clearance Periods: Cheques typically undergo a clearance process, which can take several days. Ensure sufficient funds and allow for processing time to avoid delays.
  • Regulatory Compliance: Compliance with cheque issuance and deposit regulations, including maintaining sufficient funds in the issuing account, is essential.

Cash (Efectivo)

Cash transactions are accepted in Argentina but are less common in business-to-business transactions due to security concerns and regulatory requirements:

  • Usage: Cash is commonly used for retail transactions, smaller payments, and in informal sectors of the economy.
  • Regulatory Considerations: Large cash transactions may require reporting to regulatory authorities to prevent money laundering and illicit activities.

Credit and Debit Cards (Tarjetas de Crédito y Débito)

Card payments are widely accepted in Argentina, providing convenience and security for both businesses and consumers:

  • Accessibility: Major international card networks such as Visa, Mastercard, and American Express are widely accepted across the country.
  • Security: Chip-enabled cards and secure online payment gateways enhance transaction security and mitigate fraud risks.
  • Usage: Card payments are prevalent in retail, hospitality, and online transactions, offering flexibility for customers and expanding sales opportunities for businesses.

Electronic Payment Platforms (Plataformas de Pagos Electrónicos)

Online payment platforms have gained popularity in Argentina, especially in e-commerce and digital transactions:

  • Convenience: Platforms like Mercado Pago, TodoPago, and PayU offer secure and convenient payment processing solutions for businesses and consumers.
  • Integration: They integrate with e-commerce websites, enabling seamless payment experiences and enhancing customer satisfaction.
  • Security Features: Robust encryption, fraud prevention measures, and dispute resolution mechanisms ensure secure transactions and build trust among users.

Selecting the appropriate payment method in Argentina depends on factors such as transaction size, frequency, customer preferences, and regulatory compliance. By leveraging diverse payment options and staying abreast of technological advancements, businesses can streamline operations, enhance financial transparency, and foster positive relationships with clients and suppliers in the dynamic Argentine market.

Accounting Practices in Argentina

Accurate accounting practices are crucial for businesses operating in Argentina to ensure compliance with regulations and maintain financial transparency. Here’s an expanded overview of essential accounting practices:

Invoice Requirements (Requisitos de Facturación)

Issuing invoices, known as facturas, is mandatory for most transactions in Argentina. Key considerations include:

  • Mandatory Details: Invoices must include specific information such as the seller's and buyer's tax identification numbers (CUIT/CUIL), date of issuance, description of goods or services provided, quantities, unit prices, and total amount.
  • VAT Breakdown: Clearly indicate the breakdown of Value Added Tax (IVA - Impuesto al Valor Agregado) applied to the transaction, including the applicable rate (typically 21% for standard goods and services).
  • Electronic Invoicing: Argentina has adopted electronic invoicing (Factura Electrónica) for many transactions, which simplifies compliance and enhances efficiency in issuing and processing invoices.

Recording Transactions (Registro de Transacciones)

Maintaining detailed records of income and expenses is essential to ensure accuracy and compliance with local accounting standards:

  • Chart of Accounts: Establish a comprehensive chart of accounts (Plan de Cuentas) tailored to the business's activities and reporting requirements.
  • Accrual Basis: Follow accrual accounting principles to record transactions when they occur, regardless of when cash is exchanged, ensuring accurate financial reporting.
  • Documentation: Retain supporting documentation such as receipts, invoices, bank statements, and payroll records to substantiate recorded transactions during audits or regulatory inspections.

Tax Reporting (Reportes Fiscales)

Businesses in Argentina must comply with tax reporting requirements imposed by the Federal Administration of Public Revenue (AFIP - Administración Federal de Ingresos Públicos):

  • VAT Returns (Declaración Jurada de IVA): File periodic VAT returns to report collected and paid VAT. Maintain records of sales, purchases, and VAT calculations to support accurate reporting.
  • Income Tax Returns (Declaración Jurada de Impuesto a las Ganancias): Submit annual income tax returns to report taxable income and compute corporate income tax liability. Deduct eligible expenses and apply tax credits as per applicable tax laws.
  • Withholding Taxes: Deduct and remit withholding taxes on payments made to non-resident individuals or entities, such as dividends, interest, and royalties, in accordance with tax withholding obligations.

Compliance and Audit Preparedness

To ensure compliance and facilitate audit readiness:

  • Internal Controls: Implement internal controls to safeguard assets, prevent fraud, and ensure accurate financial reporting.
  • Regular Reconciliations: Conduct periodic reconciliations of accounts payable, accounts receivable, and bank accounts to detect discrepancies and ensure accuracy in financial records.
  • Audit Trail: Maintain a clear audit trail by documenting financial transactions, adjustments, and audit findings to facilitate audits and regulatory inspections.

Cross-Border Transactions in Argentina

Managing cross-border transactions in Argentina requires adherence to specific regulations, currency controls, and tax considerations. Here’s an expanded overview to ensure compliance and facilitate smooth international payments:

Foreign Exchange Regulations

Argentina imposes strict controls on foreign exchange transactions to manage currency volatility and economic stability:

  • Authorized Entities: Only authorized financial institutions, such as banks and exchange agents registered with the Central Bank of Argentina (BCRA), can facilitate foreign currency transactions.
  • Currency Conversion: Convert foreign currencies into Argentine Pesos (ARS) through authorized channels, adhering to exchange rates determined by the BCRA.
  • Documentation Requirements: Maintain documentation supporting foreign exchange transactions, including invoices, contracts, and proof of origin of funds, to comply with regulatory scrutiny.

Transfer Restrictions

Certain cross-border transactions in Argentina may be subject to restrictions or require prior approval:

  • Transaction Approval: Obtain approval from regulatory authorities, such as the BCRA or AFIP, for large or high-value transactions, including investments, loans, or capital transfers abroad.
  • Documentation: Prepare and submit documentation outlining the purpose and details of the transaction, including supporting financial statements and business plans, to facilitate approval processes.

Tax Implications

International transactions involving Argentina may have tax implications that businesses must consider:

  • Withholding Taxes: Deduct and remit withholding taxes on payments made to non-resident individuals or entities, such as dividends, interest, royalties, or services rendered in Argentina.
  • Tax Treaties: Benefit from tax treaties between Argentina and other countries to minimize double taxation and avail of preferential tax rates on international transactions.
  • Transfer Pricing: Comply with transfer pricing regulations when conducting transactions with related parties abroad, ensuring arm’s length pricing and documentation to support transactions' fairness.

Compliance and Documentation

To ensure compliance with cross-border transaction regulations in Argentina:

  • Stay Informed: Regularly monitor updates and changes in foreign exchange regulations, tax laws, and reporting requirements issued by the BCRA, AFIP, and other relevant authorities.
  • Engage Advisors: Seek guidance from legal, tax, and financial advisors with expertise in international transactions to navigate regulatory complexities and optimize tax efficiencies.
  • Maintain Records: Keep comprehensive records of cross-border transactions, including financial statements, contracts, tax filings, and approvals, to facilitate audits and regulatory inquiries.

Compliance and Risk Management

Compliance with anti-money laundering (AML) regulations and adherence to know your customer (KYC) requirements are critical components of conducting financial transactions in Argentina. Here’s how businesses can effectively manage compliance and mitigate associated risks:

Anti-Money Laundering (AML) Regulations

Argentina has stringent AML laws aimed at preventing illicit activities, such as money laundering and terrorism financing. Key steps to ensure compliance include:

  • Customer Due Diligence (CDD): Conduct thorough KYC procedures to verify the identity of clients, including obtaining identification documents, verifying business activities, and assessing the risk profile of customers.
  • Transaction Monitoring: Implement systems to monitor transactions for unusual or suspicious activity. This includes setting thresholds for transactions that trigger alerts for further investigation.
  • Reporting Obligations: Report suspicious transactions to the Financial Information Unit (UIF - Unidad de Información Financiera) promptly. Maintain records of transactions and customer interactions as required by law.

Know Your Customer (KYC) Requirements

KYC procedures are essential to understanding the nature of the business relationship and assessing potential risks associated with clients. Key aspects of KYC in Argentina include:

  • Identification and Verification: Obtain accurate and up-to-date information about clients, including their legal name, address, tax identification number (CUIT/CUIL), and business activities.
  • Risk Assessment: Evaluate the risk level associated with each client based on factors such as industry sector, geographical location, transaction volume, and business reputation.
  • Ongoing Monitoring: Continuously monitor client relationships and update KYC information periodically to ensure compliance with changing regulations and business circumstances.

Internal Controls and Risk Mitigation

To mitigate risks associated with fraud, cybersecurity threats, and regulatory non-compliance, businesses should implement robust internal controls:

  • Segregation of Duties: Assign responsibilities for financial transactions, compliance oversight, and risk management to different individuals or teams to prevent fraud and errors.
  • Cybersecurity Measures: Implement cybersecurity protocols to protect sensitive financial data, including encryption, secure access controls, and regular audits of IT systems.
  • Training and Awareness: Educate employees on AML/KYC requirements, fraud prevention measures, and the importance of compliance with regulatory standards.
  • Regular Audits and Reviews: Conduct internal audits and reviews of financial processes, compliance practices, and risk management frameworks to identify potential weaknesses and improve controls.


Navigating Argentina's financial landscape involves understanding local regulations, currency considerations, and payment methods. If you’re looking to hire your team in Argentina, Ontop can help you by managing compliance, payroll, and local tax requirements. Book a demo with our team to learn how.