Updated October 2026
The short answer: a US company can pay a contractor in Argentina directly in US dollars. Collect a Form W-8BEN, skip the 1099, sign a services agreement, and have the contractor bill you with an export invoice (factura E) issued through ARCA. Since April 2026, Argentine individuals no longer have to convert service-export dollars into pesos.
For years, paying someone in Buenos Aires meant a conversation about exchange rates before a conversation about the work. The gap between the official rate and the dollar rates people actually used pushed many contractors to ask for payment outside the banking system. The rules have moved a lot since then, and the paperwork for a US company is now simpler than its reputation. If you are comparing models first, our Argentina hiring and payroll guide covers employees and contractors side by side.
Ontop is the Global Workforce Engine, the way companies hire and pay anywhere and the financial home for global workers. Ontop pays more than 3,900 active contractors in Argentina (Ontop platform data, October 2026), which makes Argentina one of the largest contractor markets on the platform.
Key takeaways
- Work performed in Argentina is foreign-source income for US tax purposes, so a US company generally does not withhold US tax or issue a Form 1099.
- Keep a signed Form W-8BEN (or W-8BEN-E for a company) on file. It stays with you and is not sent to the IRS.
- The United States has no income tax treaty with Argentina, so there is no treaty rate to claim.
- Argentina's tax agency is now ARCA, which replaced AFIP in October 2024. Contractors are registered either in the monotributo or in the general regime.
- Exports of services are documented with an electronic class "E" invoice (factura E).
- BCRA Communication "A" 8417 (April 2026) extended to all service categories the exemption that lets individuals keep export collections in dollars instead of converting them.
- A contractor of record such as Ontop handles contracts, compliance and USD payouts from $49 per contractor per month.
What does a US company need to do to pay a contractor in Argentina?
Your obligations are short. Confirm the contractor works from Argentina, collect a Form W-8BEN, sign a services agreement and pay against the contractor's invoice. Because the work happens outside the United States, it is foreign-source income, so there is usually no US withholding, no Form 1099 and no Form 1042-S.
Where the work happens decides the tax
IRS Publication 515 (2026) states that "the place where the services are performed determines the source of the income, regardless of where the contract was made, the place of payment, or the residence of the payer." A designer working from Córdoba for your New York startup earns foreign-source income, full stop.
That is why the usual US forms do not apply. The IRS instructions for Forms 1099-MISC and 1099-NEC send payments to nonresident aliens to Form 1042-S, and Form 1042-S reports US-source income subject to withholding. Work done entirely in Argentina is neither.
The W-8BEN, and why the treaty line stays blank
Ask every Argentine contractor for a signed W-8BEN before the first payment. The IRS instructions are clear that the form goes to the payer, not the IRS, and that it generally remains valid until the last day of the third calendar year after signing. Contractors billing through an Argentine company use the W-8BEN-E.
Argentina is not on the IRS list of US income tax treaties, so the treaty section stays empty. That does not create withholding for work done in Argentina. It only means there is no treaty benefit to document.
What does the contractor need to have in place in Argentina?
Your contractor needs to be registered with ARCA, either under the monotributo (the simplified regime for small taxpayers) or the general regime, and to bill you with an electronic export invoice, the factura E. They handle their own Argentine taxes. Your job is to ask for the invoice and keep it.
From AFIP to ARCA
If your finance team still says "AFIP," they are a little behind. Decree 953/2024 dissolved the Administración Federal de Ingresos Públicos and created the Agencia de Recaudación y Control Aduanero (ARCA), which took over AFIP's tax and customs functions. CUIT numbers and existing registrations carried over, so a contractor's tax ID did not change.
Monotributo or general regime
Many Argentine freelancers start in the monotributo, which bundles taxes and social security into one monthly payment by income category. Higher earners register in the general regime as responsable inscripto. Monotributistas can export services, but the category limits matter, and practitioners disagree on how export invoices count toward them. That is a question for the contractor's accountant.
The factura E
Exports of services are documented with an electronic class "E" invoice. ARCA's predecessor extended the electronic export invoice regime of General Resolution 2758 to services used abroad through General Resolution 3689/2014. Ask for a factura E with every payment. It is the document that proves the export and supports your contractor's FX and tax treatment. Export invoices to foreign clients do not carry Argentine IVA: under Article 1(b) of the IVA law (t.o. 1997), services performed in Argentina whose effective use takes place abroad are not considered performed in the country.
How do Argentina's FX rules affect paying a contractor?
Less than they used to. Since BCRA Communication "A" 8417 of April 2026, individuals who export services are exempt, for every service category, from the obligation to convert those dollars into pesos, provided they meet the BCRA conditions. In practice, your contractor can receive USD and keep it in dollars.
What changed in 2025 and 2026
Point 2 of Communication "A" 8417 (April 9, 2026) extends "a todos los conceptos de servicios la excepción a la obligación de liquidación de cobros de exportaciones de servicios que realicen personas humanas," building on Communication "A" 8330 of 2025. Earlier rules limited that exemption to certain services and to a yearly cap. The exemption still depends on meeting the conditions of point 2.2.2.1 of the BCRA's Exterior y Cambios rules, so ask your contractor's bank to confirm the current deadline and account requirements for receiving the funds.
Why the dollar still matters
Argentine contractors have lived through repeated devaluations, so most of them want to be paid in USD and decide for themselves when to convert. For years many relied on the dólar MEP, a legal rate obtained by buying and selling bonds, or on stablecoins to protect their income. Paying in dollars through a regulated rail, with a factura E behind every payment, keeps that choice in their hands and keeps your records clean.
How can you pay a contractor in Argentina, and how do the options compare?
You can pay by international bank wire, through an online money-transfer service, via a freelancer payout platform, with stablecoins sent directly, or through a contractor of record. In Argentina the deciding factor is usually what reaches the contractor in dollars, and how much paperwork it creates for both sides.
| Payment method | Typical speed | Cost to you | FX for the contractor | Contracts and compliance |
|---|---|---|---|---|
| International bank wire (SWIFT) | Several business days; intermediary banks can add delays | Outgoing wire fee, plus possible intermediary fees | Arrives in a local dollar account; BCRA conditions apply | All on you |
| Online money-transfer service | Often same day to a few days | Per-transfer fee shown up front | Depends on whether the provider pays out in USD or pesos | All on you |
| Freelancer payout platform or marketplace | Varies by withdrawal method | Platform or withdrawal fees, often paid by the contractor | Withdrawal options and spreads vary | Mostly on you |
| Stablecoins sent directly (USDC) | Minutes on-chain | Network and on-ramp fees | Stays in dollars; tax reporting is on the contractor | All on you, plus record-keeping |
| Contractor of record (Ontop) | Scheduled payouts with real-time status | From $49 per contractor per month, no setup fees | USD lands in the contractor's Ontop Global Account; stablecoin options available | Contracts, onboarding and compliance handled by Ontop |
Speeds and fees vary by provider, amount and bank. Check current terms before you send. Ontop pricing from getontop.com/pricing, October 2026.
How do you avoid misclassifying a contractor in Argentina?
Look at how the relationship works day to day. Argentina's 2026 labor reform narrowed the presumption of employment, so invoiced services without dependency no longer trigger it by default. But dependency still decides: fixed hours, exclusivity and a manager directing the work can turn a contractor into an employee in the eyes of a labor court.
What Ley 27.802 changed
Article 23 of the Ley de Contrato de Trabajo, as replaced by Law 27.802 (Official Gazette, March 6, 2026), now says that "el hecho de la prestación de servicios en situación de dependencia hace presumir la existencia de un contrato de trabajo." It adds that the presumption does not apply to contracts for professional services or any arrangement without dependency when invoices are issued or payment goes through the banking system (Ley de Contrato de Trabajo, current text on InfoLEG).
What it did not change
The reform removes an automatic presumption. It does not turn an employee into a contractor because an invoice exists. If the person works under your direction, on your schedule and only for you, the relationship is one of dependency, and the presumption is back on the table. Some labor law scholars also argue the change conflicts with constitutional worker protections, so expect litigation to keep testing it.
When you need an employee instead
If the role needs fixed hours, exclusivity and daily supervision, you need an Argentine entity or an employer of record to hire properly. Ontop does not employ anyone on your behalf. Our page on the EOR alternative for contractor teams explains when contractors are the right fit, and when they are not.
What is the step-by-step process to pay your first contractor in Argentina?
Five steps get you from offer to first payout: scope the engagement as a service, collect the W-8BEN and the contractor's CUIT, sign a services agreement in dollars, agree on monthly factura E invoicing, and set up the payout rail. After the first cycle, paying is a monthly approval.
- Scope it as a service. Deliverables, rate and currency (USD), with no fixed hours or exclusivity.
- Collect documents. A signed W-8BEN (or W-8BEN-E), the contractor's CUIT and proof of their ARCA registration.
- Sign a services agreement. Scope, IP assignment, confidentiality, termination and payment terms in dollars.
- Agree on invoicing. A factura E for every payment, with a clear due date.
- Set up the payout. Confirm the contractor can receive dollars on the rail you pick, and know your all-in cost per payment.
Mistakes that cost US companies the most in Argentina
- Paying without a factura E. The invoice is what proves the export. Without it, your contractor has a harder time with ARCA and the bank, and your own records have a gap.
- Agreeing on pesos. A peso-denominated contract shifts devaluation risk onto the relationship. Price in dollars and let the contractor decide when to convert.
- Treating the contractor like staff. Mandatory hours, a manager signing off on every task and an exclusivity clause are exactly the signals of dependency the 2026 reform still cares about.
- Relying on informal rails. Cash, personal accounts of third parties or undocumented crypto transfers leave no audit trail for either side. Use a rail that produces a record for every payment.
- Forgetting the W-8BEN renewal. The form generally expires at the end of the third calendar year after signing. Put the date in your calendar.
How does a contractor of record make paying in Argentina simpler?
A contractor of record takes the contract, onboarding, compliance and payout off your desk. You approve payments; the platform runs the rest. With Ontop, that costs from $49 per contractor per month, and your Argentine contractors receive USD in an Ontop Global Account, where they decide when, and whether, to convert.
When you pay international contractors with Ontop, you get:
- Contracts your way. Your own agreements or Ontop templates.
- Compliance handled. Ontop acts as the intermediary, and contracts, tax documents and local regulations are managed for you.
- One place for every payout. Approve, schedule and track payments in real time, with contracts and reports in one view.
- Dollars that stay dollars. Contractors receive USD in their Ontop Global Account, with stablecoin options and a global card to spend.
Pricing is public on the Ontop pricing page: from $49 per contractor per month, no setup fees. Building a team across LATAM? See how this works for contractors in Colombia and contractors in Mexico.
Frequently asked questions
Do I need to issue a 1099 to a contractor in Argentina?
No, if the contractor is not a US person and works entirely from outside the United States. That income is foreign-source, so Form 1099-NEC does not apply. Keep a signed Form W-8BEN on file.
Can I pay an Argentine contractor in US dollars?
Yes. Most prefer it. Since BCRA Communication "A" 8417 of April 2026, individuals exporting services are exempt from converting those collections into pesos, subject to BCRA conditions. With Ontop, payouts land in USD in the contractor's Global Account.
Is AFIP still the tax agency in Argentina?
No. Decree 953/2024 replaced AFIP with ARCA, the Agencia de Recaudación y Control Aduanero, in October 2024. Contractors' CUIT numbers and registrations carried over.
What invoice should my Argentine contractor send me?
An electronic class "E" export invoice, the factura E, issued through ARCA's systems. It documents the service export and supports the contractor's tax and FX treatment.
Does invoicing protect me from a misclassification claim in Argentina?
Partly. Since Law 27.802, invoiced services without dependency do not trigger the presumption of employment. But if you set the hours, require exclusivity and direct the work, a court can still find dependency. Structure the relationship as a real service.
How much does it cost to pay a contractor in Argentina with Ontop?
From $49 per contractor per month, with no setup fees. Your final price depends on how many contractors you pay. Details at getontop.com/pricing.
Pay Argentine talent in dollars, without the drama
Argentina's talent is world-class, and its rules finally make paying it straightforward. Collect the W-8BEN, ask for a factura E, pay in dollars through a regulated rail and keep the relationship genuinely independent. Or let a contractor of record carry all of it while your team ships.
Book a demo to see how Ontop pays contractors in Argentina from $49 per contractor per month.
Sources
- IRS Publication 515 (2026), Withholding of Tax on Nonresident Aliens and Foreign Entities
- IRS, Instructions for Form W-8BEN
- IRS, Instructions for Forms 1099-MISC and 1099-NEC
- IRS, United States income tax treaties A to Z
- Decree 953/2024 (dissolution of AFIP, creation of ARCA)
- General Resolution 3689/2014 (electronic export invoices for services)
- BCRA, Communication "A" 8417 (April 9, 2026)
- Ley de Contrato de Trabajo 20.744, article 23 as replaced by Law 27.802
- Ontop platform data, active contractors by country, October 2026
This guide is general information, not tax or legal advice. Argentina's rules change often, so confirm your situation with qualified advisors in the United States and in Argentina.
