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| Currency and Rate / $ | Euro (EUR) / USD = 0.73 | Argentine Peso (ARS) / USD = 8.14 |
| Tax Year | Calender Year | Accounting Year for Corporates, Calender year for Individuals |
| RoI Filing Due Date | May-14 | 15 April to 20 April (Individuals) |
| Residential Status |
| - Individuals | 1. Domicile in Germany for personal use 2. Customary place of abode i.e. they are present in Germany for an uninterrupted period of six months that may fall in 2 calender years - Citizenship not a consideration | Individuals deemed to be residents in Argentina - Native and naturalized Argentine citizens ; foreign individuals who are granted permanent residence in Argentina; foreign individual who remain in Argentina under temporary authorization for a period of 12 months or longer. Individuals in the last cetegory who are not granted permanent residence are deemed as NRs if they prove they do not intend to stay permanently in Argentina. Foriegn individuals who can prove that they are in Argentina because of their employment and remain in Argentina for a period not exceeding 5 years are not considered residents |
| - Corporates | Stock corporations and limited liability companies having corporate seat or place of management in Germany are subject to corporate income-tax on world wide income | Companies incorporated in Argentina and brnaches of foreign companies considered as resident companies |
| Tax Rates |
| - Individuals | Progressive rates of taxation ranging from 14% to 45% (5.5% solidarity surcharge imposed) | Progressive rates ranging from 9% to 35% |
| - Corporates | 15% (5.5% solidarity surcharge imposed) | 35% |
| Withholding Tax Rates |
| - Royalty | 15% + 5.5% surcharge | 35% on notional taxable income; (effective rates of 31.5%, 28% and 12.25% depending on type of intangible property) |
| - Fees for Technical Services | No | 35%; (effective rates of 21%, 28% and 31.5% depending on type of service) |
| - Dividends | 25% + 5.5% surcharge | 10% (plus equalization tax of 35% under conditions) |
| - Interest | 0% | 35%; 15.05% (under conditions) |
| OECD Status | Member | Non Member |
| No. of Treaties | 100 | 15 |
| Treaty with India | Yes (Comprehensive) | No |
| Advance Ruling | Yes | Yes |
| GAAR | Yes. Per German General Tax Code, any legal arrangement implying treaty benefit can be disregarded for tax purposes if taxpayer achieves benefit through “inappropriate” legal structures. Tax benefits that (i) would not have been achieved when using an “appropriate” structure, and (ii) the structure cannot be justified with significant non-tax (i.e., commercial) reasons; implemented in 1977 ; New regulations introduced w.e.f. 1 January 2008; GAAR invoked in case an inadequate arrangement leading to a tax benefit that law does not provide for ; GAAR may override treaties | Yes |
| CFC Legislation | Yes; The German CFC rules only apply if non-German entity has its statutory seat and place of effective management and control outside Germany and is structured such that it can be assimilated to a corporation under German entity-characterization rules, i.e. has more corporate than partnership features | Yes, In Argentina, CFC rules apply to resident shareholders of foreign corporations in low tax jurisdictions when passive income is higher than active income. Passive income includes dividends, interest, royalties, leases and other passive income. |
| Anti-Tax Haven | For witholding tax exemptions; some tests to be performed for applying treaty benefits - Shareholder Test, Business Income Test, Business Purpose Test, Substance Test | Transactions with entities and individuals located in low-tax jurisdictions (list of countries and other jurisdictions qualifying as low-tax jurisdictions specified) are deemed to be not carried out at arm’s length and TP is applicable |
| Transfer Pricing | Yes | Yes, applies to transactions with related parties |
| Safe Harbour | Yes | No |
| APA | Yes | No |
| Indirect transfer taxation | Under German Real Estate Transfer Tax Act, a direct or indirect transfer (or a claim for a transfer) of 95 per cent or more of the shares or partnership interests in a company owning German real estate by one acquirer (including affiliated entities and dominated entities) triggers German real estate transfer tax . This applies not only in cases in which the participation is held directly, but also if it is held indirectly via intermediary companies or if there is a combination of direct and indirect participation | No |
| Indirect Tax Regime | Value Added Tax | Value Added Tax |
| - Applicable Rate | 19% , 7% | 27%, 21% , 10.5% |
