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> 137.4%(!) of the profits for companies How on Earth does that work? Companies have to pay all of their profit + more in taxes? Or is it some misleading figur

> 137.4%(!) of the profits for companies How on Earth does that work? Companies have to pay all of their profit + more in taxes? Or is it some misleading figure which compares expenses like employment taxes to the profits?

estebank 9y ago
It's a great question. It seems like at least since 2005[1] the amount taxes owed after deductions have been >100% of profits, which might partly explain the prevalence of off-the-books earnings in the country. It seems to be the second highest tax rate of commercial profits in the world, at 106% for 2016[2]. From the breakdown of that rate[3] it seems the three highest contributors to that rate are - Turnover tax by City of Buenos Aires of 3% (Total tax rate (% of profit) 53.21%) - Employer paid - Social security contributions of 23% (Total tax rate (% of profit) 25.94%) - Tax on financial (check) transactions of 0.6% (Total tax rate (% of profit) 17.25%) Keep in mind that the last one affects every transaction, so you can _easily_ pay more tax than what you earn just by moving money back and forth. [1]: https://tradingeconomics.com/argentina/total-tax-rate-percent-of-profit-wb-data.html https://tradingeconomics.com/argentina/total-tax-rate-percen... [2]: http://data.worldbank.org/indicator/IC.TAX.TOTL.CP.ZS?year_high_desc=true http://data.worldbank.org/indicator/IC.TAX.TOTL.CP.ZS?year_h... [3]: http://www.doingbusiness.org/data/exploreeconomies/argentina/paying-taxes http://www.doingbusiness.org/data/exploreeconomies/argentina...
conanbatt 9y ago
For every 10 pesos they make, they pay 14 pesos to the state (thats how to read that %).