AFIP stands for Administración Federal de Ingresos Públicos, meaning "Federal Administration of Public Revenue." It is Argentina's equivalent of the IRS, responsible for administering and collecting federal taxes, social security contributions, and customs duties. Every employer operating in Argentina must register with AFIP and comply with its reporting requirements.
Key Functions
AFIP oversees three main areas: the Dirección General Impositiva (DGI) for tax collection, the Dirección General de Aduanas (DGA) for customs, and the Dirección General de los Recursos de la Seguridad Social (DGRSS) for social security. Employers interact primarily with DGI for income tax withholding and DGRSS for social security contributions.
Employer Obligations
Employers must file monthly payroll declarations through AFIP's SICOSS system (now called Declaración en Línea), reporting employee compensation, tax withholdings, and social security contributions. They must also issue digital pay stubs and comply with electronic invoicing requirements. AFIP conducts regular audits and has broad powers to inspect employer records.
EOR Relevance
An EOR in Argentina handles all AFIP registrations, monthly filings, tax withholding calculations, and social security remittances. This is particularly valuable given Argentina's complex and frequently changing tax regulations, which require constant monitoring and system updates.