Stock Plans in Argentina

Overview
(Updated as of August 2026)

Companies offering stock compensation to employees in Argentina should be aware of the labor law risks. Many courts and scholars take the view that stock compensation should be included in calculating an employee’s vacation pay, statutory bonus as well as potentially, severance payments.

Foreign exchange limitations, although not currently a concern (except with respect to the ability of a local subsidiary to pay the parent company under a recharge arrangement), should always be checked.  Income tax withholding on stock compensation income is required. Up to 5% of an employee’s annual gross wages are exempt from social security. Employee social taxes are subject to an earnings cap. However, employer social taxes are relatively high and uncapped.

Be aware that restricted stock awards (but not units) are likely taxed at grant.

Overview of Stock Plans in Argentina