The Argentine businessman tax reduction This will help it regain competitiveness against its neighbors, especially Paraguay. Comparing tax burdens between the two economies has returned to the center of discussion just as the government prepares its report. tax reform It is expected to be sent to Congress in the coming weeks.
A comparison that shows the difference
In a recent exchange broadcast on the La Fábrica podcast, outrageous tax difference between Argentina and Paraguay. they attended the lecture Oliver MaltzArgentine plastics businessman, nicola riquelmePresident of the Paraguayan Youth Industrial Union (UIP), gave a point-by-point breakdown of what percentage companies pay in each country.
in Argentinahe bat rises to twenty one%while inside paraguay It’s from 10%. of total incomeone of the most criticized taxes for its cumulative impact, or “waterfall effect“, range between 3% and 6%and Doesn’t exist in Paraguay.
Regarding, income taxArgentine companies pay taxes. 35%in front of my eyes 10% Paraguay business income tax.
he check taxesin Argentina 1.2% bank movements, does not exist In a neighboring country.
in regards to city taxIn Paraguay, a per square meter scheme applies, while in Argentina it is calculated per square meter. make a claimvalues between 3% and 6%According to the local government.
Workload and competitiveness
The differences extend to the workplace as well. In Paraguay, businessmen say workload represents 25.5% (16.5% company managers and 9% employees), while in Argentina they 48%.
However, the tax burden will be reduced It does not automatically convert to something more formal. According to Paraguay’s National Institute of Statistics (INE), 62.5% Of the employed population, informal. In Argentina, indexthe index is 43.2%.
Argentina’s international status
he Argentina Institute for Fiscal Analysis (IARAF) placed Argentina in first place 26th place between 39 countries with the problem of Total tax burdentakes into account individual contributions, employer contributions, and income taxes.
Data up to 2024 shows that Total personnel costs In Argentina, it is $1,744of which $1,366 Equivalent to total salary. In comparison, the average for each country is OECD It’s from $4,446 and $3,856respectively.
How does the donation/contribution system work?
In the Argentine scheme, both laborer like employer They make donations to fund social security, social services and other complementary schemes.
Personal donations from employees:
These discounts are total salary of the workers.
Employer contributions: On average, employers 27% It will be added to your taxable salary. Of that total:
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12.71% go to Argentina Integrated Pension Plan (SIPA).
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1.62% to INSSJP.
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5.56% to Family allowance subsystem.
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1.11% to national employment fund.
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6% to national social services system And to solidarity redistribution fund.
Income tax and average salary
According to IARAF research, by 2024 average salary Found below the tax minimumso, The effective burden of income tax was zero.. This situation was maintained both in the previous scheme and in the present one. New system introduced by the Base Law In the middle of that year.
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