This chapter provides an overview of Argentina’s tax regime, covering areas of particular interest to investors such as tax on gross income, real estate tax, stamp tax, and other investor considerations. This chapter contains an interview with César Litvin, CEO, Lisicki, Litvin & Asociados.
With the introduction of the Universal Health Plan, Argentina has gone some way to addressing the low-hanging fruit with regard to improving Argentina’s health care system. Inefficiencies and bureaucratic blocks in the sector can be improved by the introduction of new technologies, appointment scheduling systems and the harmonization of data across the fragmented model. The unification of health care provision looks set to continue, but the biggest challenge will be to provide quality treatment to provinces in the country’s more remote areas. Argentina boasts one of the best education systems in Latin America, in terms of both attainment and funding of institutions. More than 98% of citizens over the age of 15 are literate, and public and private universities frequently perform well – along with Chilean and Brazilian institutions – in global rankings systems. The opening of the economy puts new onus on schools and universities to provide their students with the skills necessary to compete in the global market place. The results of the first batch of students to graduate from the Schools of the Future programme will be eagerly anticipated by progressive innovators and could set the tone for deeper reform in the coming years. This chapter includes interviews with Florencia Davel, CEO, Bristol-Myers Squibb Argentina; Alberto Álvarez Saavedra, President, Laboratorios Gador; and Alberto Edgardo Barbieri, Dean, University of Buenos Aires.
Home to a wide variety of attractions ranging from the Iguazú Falls in the north-east of the country, wine tasting around Mendoza and the gastronomic night life of Buenos Aires, Argentina has much to offer visitors. Furthermore, with 11 natural and cultural sites included in UNESCO’s World Heritage List, the country presents a varied offering. Building upon these assets, the government has set the goal of boosting both tourism figures and expenditure, with Gustavo Santos, minister of tourism, announcing in January 2018 that the country aims to attract 9m tourists by the end of 2019. In order to meet these objectives, the state has increased public funding and put in place financial incentives to support investment, while reforming the aviation framework. This chapter includes an interview with Silvia Tenazinha, Country Manager, Almundo.
Although Argentina has some of the most advanced telecoms infrastructure in Latin America, scarce competition in broadband and mobile services has restricted sector dynamism. Since assuming office in 2015, President Mauricio Macri has introduced several laws enabling licensed operators to provide multiple services as part of efforts to attract investment, increase competition and enhance connectivity. At the same time, the regulatory framework is being revised to allow for sector consolidation, which should bring down prices and step up the quality of service. In line with global trends, IT development in Argentina has accelerated in recent years, improving connectivity, productivity and social inclusion. Since the introduction of the Promotion of the Software Industry Law in 2004, Argentina has developed its software and information services. As one of the most dynamic sectors of the economy, IT will be of high strategic importance in the government’s goals to develop the country, bridge the digital gap and reduce poverty.
Investing in transport infrastructure could boost Argentina’s overall economy, given the sector’s growing contribution to GDP. In 2017 the transport and communications sector represented 8.1% of GDP compared to 7.3% in 2016, according to the National Institute of Statistics and Census. The government has demonstrated its intent on improving the transport sector, with ample investment and PPP opportunities present. Enhancing the connectivity of local industries to principal logistical hubs by road, railway, river and/or air will inevitably improve regional economies and stimulate Argentina’s overall economic and social development. This chapter features interviews with Guillermo Dietrich, Minister of Transport; and Ezequiel Lemos, President, Trenes Argentinos Cargas.
An increasingly open market and policies to boost inclusivity are benefitting construction in Argentina. For example, a more transparent measure to subsidise mortgages for homebuyers has replaced supply-side stimulus packages, which should help disadvantaged populations. Meanwhile, efforts are being made to bridge the infrastructure gap and formalise labour. Public works and other construction projects are expected to continue throughout 2018 and gather pace in 2019, with government investment in infrastructure reaching $709m in 2018. Meanwhile, the real estate market in Argentina has been undergoing a transformation as a result of the measures taken by President Mauricio Macri’s administration. The Greater Buenos Aires region, for example, is home to a wide variety of residential, retail, office and industrial offers that make up a diversified property market. The sector accounted for 10.2% of GDP in 2017. This chapter features an interview with Gonzalo Monarca, President, Grupo Monarca.
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