Dr María Laura Rozental
Argentina is one of ten countries with the highest income tax on companies and with the highest tax pressure in the region.
There is currently a government project to tax unexpected income to raise money to provide financial assistance to retirees and informal workers, and to alleviate the record inflation levels the country is suffering. This is a way to distribute economic growth that, despite being at levels higher than the pre-pandemic, does not impact the general public.
The government of Argentina offered details about the project that will seek to tax “unexpected income” of companies that have benefited from the “super prices” of commodities due to the war in Ukraine. For example, an aliquot will be applied to unexpected portion of rental income.
The focus will be on companies with high net-taxable profits above ARP one billion in the year. For a better idea of the scope of impact this initiative will have, in 2021 only 3.2 percent of companies in the country had profits higher than this.
Of course, this proposal has aroused strong resistance and great controversy in the business sector.
XLNC MAGAZINE | No. 09 | Spring 2022