Taxes: How many taxes have been created or increased since Alberto Fernández took office

The tax issue was once again at the center of the debate. Finally, this week, President Alberto Fernández and Economy Minister Martín Guzmán presented the bill to collect a special tax on the “unexpected rent”. And on Tuesday the issue returned to the center of the meeting of businessmen of the Association of Argentine Enterprises (AEA). The obligatory question that arises is, of the 165 taxes that exist today, How many were created or loaded with the current government?

“There are over 160 taxes in our country and in order to continue to grow, they must begin to decrease, starting with the most distorting economic activity “, said yesterday the head of the EEA, Jaime Campos, at the beginning of the cycle of discussions in which the main men took part Argentine business.

That 165 in the number of taxes currently in the country is a recurring fact in recent times, and not only at the local level. Argentina is in a terrible place among the countries that have the most taxes, according to a World Bank ranking.

“The government is having a hard time continuing with the tax increases because it has lost a majority in Congress. However, he is looking for all possible gadgets to do this“commented Sebastián Domínguez, who in turn compiled a list of the taxes that increased or were created in the Fernández era.

There have already been 22 increases or the creation of new taxes in the current government so far. Now, if the “unexpected income” is approved, there will be 23. Below one by one of those that make up the list:

1) COUNTRY tax

through the Law 27.541, an emergency tax was created in December 2019 which taxes certain foreign exchange transactions. The COUNTRY tax of 30% on the purchase of foreign currency for hoarding, consumption with credit cards, debit cards, etc. in foreign currency, acquisition of services abroad through tourist agencies and acquisition of transport abroad. In the case of digital services, such as Netflix or Spotify, among others, the rate is 8%.

Two) Personal property – Primo Suba

The previous government promised that the personal property tax would remain 0.25% from 2018 onwards to encourage the adhesion to bleach. However, at the end of the same year, it introduced a new scale applicable starting from the 2019 financial year and the rates then increased from from 0.25% to 0.75%. However, the non-taxable minimum remained at $ 2,000,000 without any kind of updating mechanism, “which is why it will be reduced year after year by increasing the tax,” Domínguez pointed out in his document.

Alberto Fernández then returned to tweak that tax and bring it to 1.25% when it approved the Social Solidarity Law and also generated aggravated rates for assets located abroad.

3) Personal property – According to Suba

In 2021 it was returned to approve a new upload and the tax was increased by from 1.25% to 1.5% for the section between $ 100,000,000 and up to $ 300,000,000. And from from 1.25% to 1.75% for amounts over $ 300,000,000. This is in the case of local goods. For goods abroad, the rate has been increased between 0.70 and 2.25% depending on the total quantity of goods in the country and abroad.

4) Personal property – Terzo Suba

AFIP has announced a change in its tax assessment criteria for Buenos Aires properties. This implies multiply by 4 the value you were considering and it will increaseIn most cases

5) Personal property – Quarto Suba

The Fernández government has made a commitment to the International Monetary Fund standardize property tax assessments across the country for September 2022, after agreement with the Provinces and the CABA. The goal is for this increase in valuations to generate greater personal property tax collection for fiscal 2022.

6) cost of labor

Law 27.541 made changes relating to employer contributions. “The non-taxable minimum that should be increased, was frozen at $ 7,003.68 and no update mechanism is provided. This means that it melts month after month with inflation, “explained the head of the tax advisors of the SDC. In addition, they were frozen the rates of employer contributions for companies at 20.40% or 18% depending on the type of employer.

7) Corporate Income Tax – first ascent

Law 27.430 provided for a reduction in the rate 30% to 25% for exercises starting from of January 2020. “This was another lowering of the tax burden left aside by the Social Solidarity and Productive Reactivation Law. The text has postponed the application of the 25% corporate tariff scheduled for 2019 for another year, which means that it has extended the 30% tariff for another year, “said Domínguez.

8) Corporate Income Tax – second increase

In 2021 and after a postponement, the law was amended by establishing a progressive rate. Rates have increased in between 25 and 35%based on the accumulated surplus.

9) Income tax – adjustment for inflation

Changed on tax adjustment for inflation on corporate profits. “The vast majority of companies suffer a loss due to the adjustment for fiscal inflation, with which they are damaged,” said Domínguez.

“Those who profit from the adjustment for tax inflation (for example, indebted companies) have an advantage because they allocate that profit at 1/6 per year,” he clarified. And I add: “This deferral does not apply for financial years starting on or after January 1, 2021 because the extension was attempted by inserting it into the 2022 Budget Law and was rejected “.

10) Tax on debts and credits in bank accounts – part I

Law 27,541 increased the tax charge to double when making cash withdrawals for taxable transactions. That is, in these cases the tax will go from 0.6% to 1.2%.

This increase does not apply to individuals and legal entities that are micro and small companies with a MiPyME certificate.

eleven) Taxes on debts and credits in bank accounts – Second part

The debt and credit tax exemptions have been changed to tax the payment accounts.

12) Tax on debts and credits on bank accounts – part III

The exemptions have been modified to the tax movements of funds related to the purchase, sale, exchange, brokerage and / or any other transaction on cryptocurrencies, cryptocurrencies, digital currencies or similar instruments.

13) Value added tax on products from the basic food basket

In December 2019 the 0% tariff on some products in the basic basket which had been imposed by decree by the government of Mauricio Macri. In this way the products were again taxed at 10.5% and 21% on sales to final consumers.

14) Retentions – Part 1

First, they have changed export duties on soybeans and other derived products bringing them to a maximum of 33%. Then it was decided down 3%2% for November and 1% for December.

fifteen) Retentions – part 2

With the argument to suspend the rate cut, withholding taxes on exports of some soybean by-products increased.

16) Perception 35% on the purchase of dollars and consumption by card

Through the General Resolution (AFIP) 4815 a perception system was created 35% which applies to the same taxable cases as the PAIS tax. Monotributists can calculate that 35% in account of personal assets, while the rest as income on behalf of income tax. Those who are not taxpayers can request a refund from the following year of the withholding taxes.

17) Internal taxes on technological and electronic products

The 2021 Budget Law provided for an increase Internal taxes on some electronic productsamong others, from January 2021. These products have passed from being taxed at 10.50% to 17% and when they are made in Tierra del Fuego went from 0% to 6.55%.

18) Tax on online gaming

The 2021 Budget Law has increased the rate, establishing that the income tax arises from the application of the 5% rate on the net value of the deposits made by the bettor on their gaming account.

It reduces by 50% in the case of bets involving subjects linked to the exploitation of games of chance and / or bets that have real investments in the country linked to that stake.

Likewise, in the case of bets involving, directly or indirectly, a foreign entity, the rate increased to 10%and in the case of bets involving, directly or indirectly, a foreign entity that is located, constituted, regulated or domiciled in a non-cooperative jurisdiction or with low or no taxation, the rate will be increases to 15%.

19) Tax on car insurance premiums

The 2021 Budget Law established a mandatory contribution of 0.5% on auto insurance premiums corresponding to policies contracted with insurance bodies on all vehicles involved in passenger transport services of national jurisdiction and which will be destined for the Transport Regulatory Commission.

winds) Tax on insurance premiums for fire management

The 2021 Budget Law established the National Fire Management Fund. It consists, among other things, of a mandatory contribution of 3 per thousand of the prizes insurance (excluding life insurance), borne by the insurers.

twentyone) Property tax

Extraordinary wealth tax applies rates progressive from 2% to 3.5% ein the case of goods abroad, proportional rates from 3% to 5.25%.

This is a similar personal property tax, which is why the property tax in 2020 can go up to 7.5% for foreign assets.

22) Tax on undeclared overseas goods

Official senators have circulated a bill, not yet presented to Congress, establishing a tax on undeclared assets abroad.

If the law were passed, a new tax would be instituted with rates of 20%, 35% and 50% on assets not declared abroad, under various conditions.

23) Tax on unexpected profits

The government unveiled a plan on Monday to tax what it defines “Unexpected benefits” due to the rise in prices caused by the war in Ukraine. It will reach companies with profits over $ 1,000.

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