Friday, October 26, 2012
Dealing With Property And Other Forms Of Taxes In Argentina
Taxes are handled a little differently in Argentina in comparison to the United States. Argentinians don’t pay annual taxes based on earned income every year. The government collects taxes in different ways.
Even if you’re done making payments on your home, you still have to pay monthly taxes.
There are two types of taxes:
An Argentine accountant will tell you that you're technically supposed to pay National taxes too, which are taxes paid to the Argentine government, but according to my research, people here don't do this. So, you'll be fine as long as you pay the municipal and provincial taxes for your property.
Other Types of Taxes
Taxes are automatically added to the final total of your store purchase, but you’re not likely to see how much you’ve been taxed on a credit card receipt. Taxes are also deducted from employee paychecks just like in the States.
If you decide to work as a freelancer or in "negro," which is the Argentine term for working under the table, you'll want to become a . Essentially, you have to pay the AFIP (The Argentine version of the IRS) 10 percent of whatever you make per month.
Like the property taxes, you're required to pay the municipal and provincial taxes as well, even if you've paid your vehicle in full.
Tax Rates Argentina
The sales tax rate is currently at 21 percent on any purchases, or bill for services rendered. The personal income tax rate is at 35 percent, and the corporate tax rate is approximately 35 percent.
Who Controls Taxes In Argentina?
Similar to its American counterpart, the IRS, The AFIP controls the way that taxes are collected. They also ensure that Argentine businesses are legit, registered, and report their tax earnings and make the appropriate payments to the provincial government.
The Downside Not Collecting Annual Income Taxes
Some might say that the national debt in Argentina would be easier to manage if they adopted a similar practice of collecting annual income taxes like they do in the United States. Unfortunately, the current practice has led some provincial governments to collect taxes in other ways, such as handing out traffic tickets with excessive fines or raising the cost of food, and utilities. Then again, Argentinians get free health care and free higher education so it’s understandable that the government would find other ways of collecting taxes from the public.
at 1:01 PM