fted and foreign investment does not require any prior approval from the Argentine authorities. Although some remain in sensitive areas such as defense, telecommunications, and oil and gas. Profits may be freely transferred.STATE ASSISTANCE AND GRANTSSpecial incentives for certain activities and tax reimbursements on exports, among others, are granted under identical conditions to nationals and foreigners.Foreign investors are not required to obtain government permission to invest in Argentina. Foreign investors may wholly own a local company, and investment in corporate shares listed on the stock exchange requires no government approval.Argentina generally does not impose exchange controls or restrictions on the flow of capital or profit distributions abroad.At present, some companies do still enjoy tax privileges attained in the past, but gradually these are running out and it is not to be expected that new tax facilities or privileges will be granted.TAX SYSTEM / 1Taxes are levied at three levels: national, provincial and municipal. National taxes, especially value-added-tax (VAT), which are collected by the federal government and distributed to the provinces, yield most of the revenue.The provinces levy taxes primarily on gross business receipts (turnover tax) and on real estate and, jointly with municipalities, they levy charges for services.For many years Argentina taxed on a territorial basis. All Argentine-source income was subject to Argentine income tax. Foreign-source income, such as the profits of a foreign branch of an Argentine company, was not subject to Argentine income tax. A tax reform, effective as from 1998, established that residents (whether individuals, corporations or any other type of entity) are taxed on worldwide income. Non-residents continue to be taxed only on Argentine-source income.A tax credit is allowed for similar taxes paid abroad, up to the amount of the Argentine tax on the foreign-source income. ...
