What is the expense reimbursement policy in Argentina?



Modified on: Thu, 23 Oct, 2025 at 4:03 PM

TABLE OF CONTENTS



This article provides guidance on managing reimbursable business expenses in Argentina, ensuring compliance with the country’s tax and VAT regulations as outlined in the Income Tax Law (Ley de Impuesto a las Ganancias, LIG). 

ARCA (Agency for Revenue Collection and Customs Control), is the autonomous agency under the Ministry of Economy, responsible for tax collection and customs control functions, which also monitors compliance with tax and income declarations. 



Travel & Mileage Reimbursement

  • No fixed rate required: There is no official reimbursement rate set by Argentine tax law. 

  • Documentation required: Employees must submit a mileage log detailing dates, mileage, route, and business purpose.

  • Tax treatment: Reimbursements must be classified as business expenses (not compensation) to avoid taxation.


Parking Tolls & Fees

  • Deductible if supported: Parking charges and tolls related to work trips may be reimbursable when supported by valid receipts.

  • Non-deductible fines: Any traffic or parking fines are personal items and not eligible for reimbursement.

  • Tracking method: Record toll and parking expenses must be submitted separately from mileage claims, and include receipts.


Expense Limitations

  • There is no upper cap, but must be reasonable: While there is no legal cap, all expenses must be necessary, reasonable, and directly linked to business activity (per LIG Articles 17 and 80).

  • ARCA evaluations: Excessive or poorly justified expenses may be disallowed during tax audits.


Transportation Modalities

  • Applies to all transport types. Whether airfare, train, rental car, taxi, or bus, the following are mandatory:

    1. Valid receipt or ticket (with tax ID, date, amount, service description)
    2. Business purpose justification
    3. Reasonableness in relation to business needs


Invoicing & Documentation Standards

  • Receipt/invoice must include:

    • Supplier name
    • CUIT/CUIL tax ID
    • Date, description of service/good
    • Total amount and VAT breakdown
    • If applicable, supplier stamp or signature

  • Required documentary evidence:

    • Formal invoices (facturas) are essential for deductibility and must clearly identify the payer (“Horizons” or relevant company name).
    • No threshold for invoices; all expenses require proper receipts, even small ones.
  • VAT Treatment: 
    • VAT-eligible expenses must be invoiced in the company name.
    • VAT credits may be recovered (21% standard rate), in line with VAT Law Article 12.


Per Diem & Representation Allowances

  • Per diem policy:    
    • Non-taxable if defined in a written company policy, reasonable, and substantiated.
    • Overly generous or undocumented amounts are deemed taxable compensation (Article 79(b) LIG).

  • Client entertainment & gifts:

    • Deductible only if supported by valid invoices and tied directly to business activity (Article 17 LIG).


Non-Deductible Personal Expenses

  • Medical care, gym memberships, therapy, and recreational activities are not deductible, except for employer-provided health plans (Article 81(g) LIG).


Summary of Reimbursable vs. Non-Reimbursable Items

✔ Reimbursable (with supporting invoice):

  • Business travel (air, rail, car, taxi)
  • Toll and parking fees
  • Lodging and meals during business travel
  • Client entertainment and gifts (reasonable)

✘ Not Reimbursable:

  • Traffic or parking fines
  • Personal health, wellness, or recreational expenses
  • Overly excessive or non-business-related expenses


Compliance & Record-Keeping

  • ARCA expectations: All expenses must be justified, necessary, and properly documented (LIG Articles 17, 80, 92, 40). Poor records may lead to disallowed deductions.

  • Retention period: Companies must retain documentation for five fiscal years.

  • Payroll tax interaction: Reimbursements should not be treated as employee income and should not impact fourth-category withholding or personal deduction allowances.


Policy Enforcement

  • Expenses must be submitted within 30 days with all required documentation. Delays may lead to rejection.

  • Audit and review: Non-compliant expenses will be rejected and may be reclassified for tax purposes.

  • Reporting uncertainties: Questions or grey-area expenses should be escalated to the Finance or Compliance team before incurring.


Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article



Related Articles