Franchising in Argentina
- Argentina
- 01/26/2002
- Hourbeigt Ruiz Martinez & Padilla
In order to enter into a franchising agreement in Argentina there are no specific requirements imposed by legislation. In other words, general Contract Law applies. At the same time, administrative regulation does not impose any legal obligation to register the contract. However, in the event the franchising agreement includes the transfer of technology it may be convenient for tax reasons to register the agreement before the regulatory authority.
Franchisee will pay usual taxes for carrying out business in Argentina (Income Tax, VAT, Import Duties, Stamp Tax, Gross Revenue Tax, Debit and Credit Tax.) Franchisor shall pay Income Tax for income derived from Argentine source. Note that Argentina have signed double taxation treaties with several countries; treaties for the avoidance of double taxation and prevention of fiscal evasion entered into by Argentina are with: Austria, Belgium, Denmark, Finland, France, Germany, Italy, Norway, Spain, Sweden, The Netherlands, United Kingdom, Australia, Canada, Bolivia, Brazil, and Chile.
Payments to foreign beneficiaries must be previously approved by the Central Bank. A withholding shall apply over any remittance.
