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Our staff are experts in fields ranging from operations, payroll, accounting, and more. Learn what you need to expand your business and hire staff in Argentina.
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Argentina is a vast country located in the southern part of South America. The eighth largest country in the world. It is a developing country. Its economy is the second-largest national economy in South America.
Employees can be majorly divided into two categories – Contractors and Employees and defining relation with the employee is very important to avoid risks associated with misclassification.
The courts in India have applied the control and integration test to determine whether a person can be classified as an employee or independent contractor. The prima facie test is the control test to determine whether an employer-employee relationship exists and it is not merely to direct the nature of work that has to be carried out but also to control the manner in which it is done.
Another difference between an employer and contractors is an employer is required to withhold tax at the time of payment of salary to employees. The salary paid to an employee may include benefits and allowances that the employee is entitled to, which is beneficial to the employee from a tax perspective. However, with respect to independent contractors, the employer must withhold the applicable taxes; however, the amount paid may not be in the form of salary, but as professional fees for services performed. In both these cases, the employee and independent contractor/s will be required to file their income tax returns as prescribed under law.
Monthly employees are to be paid at the end of each calendar month. Employees with daily or hourly wages must be paid weekly or bi-weekly.
Employees are entitled to their essential benefits. Staying compliant with the country’s benefits is mandatory. Failing to offer these provisions can lead to government penalties. In Argentina, the required benefits include:
Having supplemental benefits results in employees’ increased contribution of their best efforts and continuing to work with you.
Individuals resident are taxable on global income at progressive income tax rates ranging from 5% to 35%.
The following PIT rates are currently applicable (as of 1 January 2021):
Employers can terminate an employment contract at any time without justified cause, entitled to payment of severance compensation provided by labour laws. Employees on a trial period, i.e. during the first three months of employment, are not entitled to severance compensation; exception made to prior notice (15 days). Termination of employment with a justified cause does not involve payment of severance compensation.
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