The government is betting to raise $ 120,000 million for the unexpected income tax

The government is committed to collectingno less than $ 120 billion in 2023 with extraordinary personal income tax. The expectation is that the bill promoted by Martín Guzmán will enter Congress in the next few hours and after its approval – if that happens – it will reach some 350 companieswhose contributions will be shared with the provinces, without having a specific destination.

“With current international prices and a scenario that does not change substantially, about 350 companies can qualify to be achieved by the unexpected income, a fairly conservative calculation would give us a collection of 1,000 million dollars at the official price in 2022, which is paid through advances and withholdings “, confirm official sources.

With an official dollar of 121.29 dollars, that amount represents a collection of 121,290 million dollars, less than half of the 250,000 million dollars generated by the solidarity contribution, approved in late 2020 due to the pandemic. But, as advance payments may apply, it could serve to cover a second semester with greater expenses and greater difficulties to achieve goals with the IMF.

The Minister of Economy presented the initiative at Casa Rosada on Monday and this Tuesday received the rejection the Association of Argentine Entrepreneurs (AEA) during a meeting at the Retiro Sheraton Hotel, where he defended the measure and promised to advance the Néstor Kirchner pipeline. Guzmán denied that it was a new tax and explained that it will only be in effect for a year to deal with the price shock caused by the war in Ukraine.

The official project provides for this companies will have to cross two thresholds pay an additional 15% rate on income tax. First, it records inflation-adjusted net tax gains of more than $ 1,000 million in 2022 over the previous year. And then, that margin is 10% higher than billing in 2022 or 20% higher than 2021.

So, for example, if the law were passed in July, a company with a taxable net profit of $ 600 million on its balance sheet as of 8/31/2021, which, adjusted for inflation as of 8/31/22, was $ 1,000 million (assuming a 66% change) and that in 2022 it earned 1,200 million dollars, it is assumed that it already pays the maximum rate of 35% on 1,150 million dollars. And now they’ll also pay the 15% tax rate on the $ 200 million difference, if they meet the other requirements.

Almost two months after first announcing the measure at Casa Rosada in April and subsequently delaying it in the face of opposition from the business world, the government has decided to relaunch the project the last weekend. Was after Cristina Kirchner’s claim during the act for the anniversary of the Ypf, where last Friday he asked the president to “use the pen” and ask businessmen to “pay back part of the money”.

In the meantime, the tax has undergone some changes: now, for example, it no longer provides for a reduction in the burden if companies reinvest the profits, as the minister had promised, and will cover all sectors of the economy, on the presumption that the l he extraordinary surplus was the product of the surge in prices. “The idea is to do something transversalunlike other countries that used it exclusively for energy, such as Italy and England “, they assured.

According to one of the two articles of the bill, “the subjects referred to in letter a) of article 53 of this law, who comply with the provisions of the following article, must also pay an additional rate of 15% (15%), for onceon the excess of the taxable net profit resulting from the comparison of that achieved in the first financial year ending on the first day of the month immediately following, including, that of the entry into force of this article, compared to that of the previous financial year, adjusted for the change of the Consumer Price Index (CPI) provided by the NATIONAL INSTITUTE OF STATISTICS AND CENSES (INDEC), a decentralized body that operates within the MINISTRY OF ECONOMY, operated between the two closures “.