Due to the absence of the tax code in Argentina, the tax regulation takes place in accordance with separate laws, which, in turn, are supplemented by provisions of normative acts adopted by the executive authorities. The powers of the executive authority include levying a tax on profits, property and added value throughout the national territory. In Argentina, the tax policy is implemented by the Federal Administration of Public Revenue, which is subordinate to the Ministry of Economy. The Federal Administration of Public Revenues (AFIP)[1] is an independent service, which includes: the General Tax Administration, the General Customs Office and the General Directorate for Social Security. AFIP establishes the relevant legal norms for the calculation, payment and administration of taxes:
taxes levied on operations carried out on the national territory of the country and in marine areas fully covered by the national tax policy;
taxes, which are imposed on import and export operations, regulated by tax laws and customs regulations;
corresponding deductions for social security.
The tax year is the fiscal year which can be calendar year or another period covering 12 months. The administration of taxes functions on self-assessment system and the ruling is covered only by a binding consultation system. There is no ruling system for taxes in Argentina.
Taxes in Argentina
Taxes in Argentina are levied on three levels:[2][3]
federal level;
provincial level;
municipal level.
The main sources of state budget revenues in Argentina are:
Income tax, levied both on enterprises and individuals;
The following federal taxes are applied in Argentina:
Taxes on income, profit and capital gains: Income tax in Argentina is collected solely by the Government of Argentina, to the exclusion of the provinces. Argentina has a progressive tax on personal income that is collected as a deferred tax. It also has a flat rate tax on business income (corporate tax) - 35%. There is a stamp tax of 1.5% on the total value of real property, whether it gained or lost value, as opposed to just 1.5% applied only to realised capital gains. There is also an ad valoremproperty tax on other assets such as vehicles. There is also a 0.6% tax on all bank transactions.;
VAT: The standard tax rate, currently 21%, is charged on the net price of the transaction. The special rate 27% is applied on services as water, natural, gas, power and communication services. Reduced rate of 10,5% is levied on some capital goods. Exports of goods and services are zero-taxed, because outputs are not with taxation and inputs can be reclaimed.;
Excise taxes on electronics, tobacco, alcohol, soft drinks, perfumes, jewelry, precious stones, vehicles, tires, mobile phone services, insurance policies, gasoline, lubricating oils, and other items.;
Types of tax rates for excisable goods
Types of excisable goods
Tax rate
Tobacco
60%
Alcohol
12-20%
Champagne wines
12%
Beer
8%
Soft drinks
8%
Diesel cars and engines
10%
Luxuries
20%
Ships and airplanes
4-8%
Others
16-20%
Taxes on property: The tax rate is set by the legislation of each province. The tax is paid monthly or every 2 months in accordance with the laws of a province.
Taxes on foreign trade;
Regardless of the federal taxes in each separate Argentine province there are also taxes of the provincial level,:
Tax on gross income;
Real estate tax;
Tax on vehicle fleet and vehicles;
Turnover tax: Each of the 24 Argentine subjects has its own turnover tax rate. On average, turnover tax rate is approximately 3% to 5%, taxes for industrial activities are 1.5% to 4% and 1% to 3% for primary activities.
Stamp Tax
The taxes based on provincial level are administered by the provincial revenue agencies.
In addition to the basic provincial taxes, each of the 24 subjects has, on average, three taxes (fees), unique to it. These fees are levied on individuals and legal entities for industrial safety services, health protection, environmental protection, advertising, airspace, quality control, sanitary inspection and electrical installations, etc.
In addition to the above taxes, set at the federal and provincial levels, in Argentina, the municipalities set a number of municipal fees: for lighting, garbage collection and other. The sums of municipal fees in fixed rates are determined in each particular municipality based on various conditions, for example, estimating the value of the property, its location, number of storeys, the year of construction, the condition of the roof, the materials of which it is made and others.
Argentina has agreements on avoidance of double taxation with countries such as Australia, Austria, Belgium, Bolivia, Brazil, Canada, Chile, Denmark, Finland, France, Germany, the Netherlands, Spain, Sweden, the United Kingdom and the United States. In October 2001, such an agreement was signed with Russia.
In Argentina, there are two modes of taxation, regulated by AFIP - general regime and simplified tax system. Taxpayers who are subject to taxation under the general regime are recognized as individuals or legal entities that pay the following taxes: profit tax, VAT, the minimum expected profit tax, personal property tax, and any other internal tax that is subject to collection and control by the Federal Administration of Public revenue. The essence of the simplified taxation[4] is the establishment of a single tax consisting of two components: an integrated tax and a fixed amount. The integrated tax, is established on certain categories on basis of such indicators as:
Gross income;
The room space;
Electricity consumption;
Rent.
The application of the simplified taxation system by organizations provides for their exemption from the obligation to pay income tax, VAT, contributions to the Argentine pension system (SIPA), contributions to the National Health Insurance System.
Wage taxation in Argentina
Taxes connected to wages are consisted only from social security.[5] There is no payroll tax in Argentina. The social security system is financed by employer contribution of 17% or 21% of payroll and 14% contribution by employee. The health care works the same but with 6% contribution by employer and 3% by employee. Self-employed individuals must pay their own contribution monthly and it is a fixed amount.
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to collectively fund government spending, public expenditures, or as a way to regulate and reduce negative externalities. Tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax relief. The first known taxation took place in Ancient Egypt around 3000–2800 BC. Taxes consist of direct or indirect taxes and may be paid in money or as its labor equivalent.
Taxation in Indonesia includes income tax, value added tax and carbon tax.
Taxation represents the biggest source of revenues for the Peruvian government. For 2016, the projected amount of taxation revenues was S/.94.6 billion. There are four taxes that make up approximately 90 percent of the taxation revenues:
Taxation in Denmark consists of a comprehensive system of direct and indirect taxes. Ever since the income tax was introduced in Denmark via a fundamental tax reform in 1903, it has been a fundamental pillar in the Danish tax system. Today various personal and corporate income taxes yield around two thirds of the total Danish tax revenues, indirect taxes being responsible for the last third. The state personal income tax is a progressive tax while the municipal income tax is a proportional tax above a certain income level.
In Austria, taxes are levied by the state and the tax revenue in Austria was 42.7% of GDP in 2016 according to the World Bank The most important revenue source for the government is the income tax, corporate tax, social security contributions, value added tax and tax on goods and services. Another important taxes are municipal tax, real-estate tax, vehicle insurance tax, property tax, tobacco tax. There exists no property tax. The gift tax and inheritance tax were cancelled in 2008. Furthermore, self-employed persons can use a tax allowance of €3,900 per year. The tax period is set for a calendar year. However, there is a possibility of having an exception but a permission of the tax authority must be received. The Financial Secrecy Index ranks Austria as the 35th safest tax haven in the world.
Taxation in Norway is levied by the central government, the county municipality and the municipality. In 2012 the total tax revenue was 42.2% of the gross domestic product (GDP). Many direct and indirect taxes exist. The most important taxes – in terms of revenue – are VAT, income tax in the petroleum sector, employers' social security contributions and tax on "ordinary income" for persons. Most direct taxes are collected by the Norwegian Tax Administration and most indirect taxes are collected by the Norwegian Customs and Excise Authorities.
Taxes in Germany are levied by the federal government, the states (Länder) as well as the municipalities (Städte/Gemeinden). Many direct and indirect taxes exist in Germany; income tax and VAT are the most significant.
Taxation may involve payments to a minimum of two different levels of government: central government through SARS or to local government. Prior to 2001 the South African tax system was "source-based", where in income is taxed in the country where it originates. Since January 2001, the tax system was changed to "residence-based" wherein taxpayers residing in South Africa are taxed on their income irrespective of its source. Non residents are only subject to domestic taxes.
Taxes in Bulgaria are collected on both state and local levels. The most important taxes are collected on state level, these taxes include income tax, social security, corporate taxes and value added tax. On the local level, property taxes as well as various fees are collected. All income earned in Bulgaria is taxed on a flat rate of 10%. Employment income earned in Bulgaria is also subject to various social security insurance contributions. In total the employee pays 12.9% and the employer contributes what corresponds to 17.9%. Corporate income tax is also a flat 10%. Value-Added Tax applies at a flat rate of 20% on virtually all goods and services. A lower rate of 9% applies on only hotel services.
Czech Republic's current tax system was put into administration on 1 January 1993. Since then, an updated VAT act was introduced on 1 May 2004 when Czech Republic joined the EU and the act had to correspond to EU law. In 2008, the administration also introduced Energy Taxation. Changes to tax laws are quite frequent and common in the Czech Republic due to a dynamic economy. The highest levels of revenue are generated from income tax, social security contributions, value-added tax and corporate tax. In 2015, total revenue stood at CZK 670.216 billion which was 36.3% of GDP. The tax quota of the Czech Republic is lower than the EU average. Compared to the averages of the OECD countries, revenues generated from taxes on social security contributions, corporate income and gains and value added taxes account for higher proportions of total taxation revenue. Personal income tax lies on the other end of the spectrum where the revenue is proportionally much lower than the OECD average. Taxes on property also account for lower levels of revenue.
Taxes in Lithuania are levied by the central and the local governments. Most important revenue sources include the value added tax, personal income tax, excise tax and corporate income tax, which are all applied on the central level. In addition, social security contributions are collected in a social security fund, outside the national budget. Taxes in Lithuania are administered by the State Tax Inspectorate, the Customs Department and the State Social Insurance Fund Board. In 2019, the total government revenue in Lithuania was 30.3% of GDP.
Taxation in Hungary is levied by both national and local governments. Tax revenue in Hungary stood at 38.4% of GDP in 2017. The most important revenue sources include the income tax, Social security, corporate tax and the value added tax, which are all applied at the national level. Among the total tax income the ratio of local taxes is solely 5% while the EU average is 30%.
Taxation in Bosnia and Herzegovina includes both federal and local taxes. Tax revenue in Bosnia and Herzegovina stood at 28.6% of GDP in 2013. Most important revenue sources include the income tax, Social Security contributions, corporate tax, and the value added tax, which are all applied on the federal level.
Taxation in Belgium consists of taxes that are collected on both state and local level. The most important taxes are collected on federal level, these taxes include an income tax, social security, corporate taxes and value added tax. At the local level, property taxes as well as communal taxes are collected. Tax revenue stood at 48% of GDP in 2012.
Taxes in Uruguay are taxes collected mainly by the General Taxation Directorate in Uruguay.
The Administración Federal de Ingresos Públicos, usually shortened as AFIP is the revenue service of Argentina. It administers taxation in Argentina. The AFIP made a deal with the American IRS to share information in 2017.
The organization responsible for tax policy in Ukraine is the State Fiscal Service, operating under the Ministry of Finance of Ukraine. Taxation is legally regulated by the Taxation Code of Ukraine. The calendar year serves as a fiscal year in Ukraine. The most important sources of tax revenue in Ukraine are unified social security contributions, value added tax, individual income tax. In 2017 taxes collected formed 23% of GDP at ₴969.654 billion.
Taxation in the Bahamas is collected by the Government of the Bahamas. The Bahamas are considered a tax haven given the lack of income tax, capital gains tax, inheritance tax or company tax. Government tax revenue is instead derived from consumption, property and import taxes as well as licence fees.
Ethiopia has a long history of taxing its population. As of 2002, reforms have changed the way the tax system works in the nation; these reforms have aimed to centralize tax authority. Currently the nation's federal government lobbies many different types of taxes on its population; these taxes include income taxes on four main schedules, property taxes, and value added taxes (VAT).
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