"Argentines risking all..." Associated Press

[Davidglen77]

I disagree on several points. And I am a taxpayer, business owner and I have bought property here.

First "taxes eat up 65 percent of the money people do declare". How is this calculated?

I have paid taxes here for 3 years and have never paid 65%.
I pay ingresos brutos, which are 3% of the price of purchased goods.
IVA, which is 21% of the difference between the price I paid for the goods and the price I sell them at.
And then ganancias, which are 35% of any profit after deducting ALL of my costs for running my business and ALSO any IVA I pay on any purchases or services is deducted from what I owe.
When you do the numbers, it's about 30% TOTAL of my income going to taxes. It's less then I paid in New York, where I got about 39% deducted from my paycheck each pay period and I paid almost $1,000 U$D property taxes PER MONTH on a 2 bedroom apartment a little larger than the one I have here. My property taxes (ABL) here are $89 PESOS every 2 months
So actually I pay less taxes here.

Yes bank fees here are higher, and the impuesto al cheque which is going to be eliminated in the next year or so are above and beyond reasonable. However I don't ever remember being able to use my bank issued credit card to get 20% off (like I get here) my supermarket purchases at Gristede´s, D'agostino or Zabar's (you New Yorkers will identify with these stores). So actually I think financially I'm ahead of the game here.

 

[Polloculo]

I disagree on several points. And I am a taxpayer, business owner and I have bought property here.

First "taxes eat up 65 percent of the money people do declare". How is this calculated?

I have paid taxes here for 3 years and have never paid 65%.
I pay ingresos brutos, which are 3% of the price of purchased goods.
IVA, which is 21% of the difference between the price I paid for the goods and the price I sell them at.
And then ganancias, which are 35% of any profit after deducting ALL of my costs for running my business and ALSO any IVA I pay on any purchases or services is deducted from what I owe.
When you do the numbers, it's about 30% TOTAL of my income going to taxes. It's less then I paid in New York, where I got about 39% deducted from my paycheck each pay period and I paid almost $1,000 U$D property taxes PER MONTH on a 2 bedroom apartment a little larger than the one I have here. My property taxes (ABL) here are $89 PESOS every 2 months
So actually I pay less taxes here.

Yes bank fees here are higher, and the impuesto al cheque which is going to be eliminated in the next year or so are above and beyond reasonable. However I don't ever remember being able to use my bank issued credit card to get 20% off (like I get here) my supermarket purchases at Gristede´s, D'agostino or Zabar's (you New Yorkers will identify with these stores). So actually I think financially I'm ahead of the game here.

Yep i do everything legit here as well, made sure I told my accountant I wanted everything above board and I have no problems at all. I also pay around the 30% mark which as you say is better than what I pay in my country as well.

Also have a good relationship with my bank and in three years have never had any problems getting my money into the country on a monthly basis. Touch wood

 

[use2brew]

I disagree on several points. And I am a taxpayer, business owner and I have bought property here.

First "taxes eat up 65 percent of the money people do declare". How is this calculated?

I have paid taxes here for 3 years and have never paid 65%.
I pay ingresos brutos, which are 3% of the price of purchased goods.
IVA, which is 21% of the difference between the price I paid for the goods and the price I sell them at.
And then ganancias, which are 35% of any profit after deducting ALL of my costs for running my business and ALSO any IVA I pay on any purchases or services is deducted from what I owe.
When you do the numbers, it's about 30% TOTAL of my income going to taxes. It's less then I paid in New York, where I got about 39% deducted from my paycheck each pay period and I paid almost $1,000 U$D property taxes PER MONTH on a 2 bedroom apartment a little larger than the one I have here. My property taxes (ABL) here are $89 PESOS every 2 months
So actually I pay less taxes here.

Yes bank fees here are higher, and the impuesto al cheque which is going to be eliminated in the next year or so are above and beyond reasonable. However I don't ever remember being able to use my bank issued credit card to get 20% off (like I get here) my supermarket purchases at Gristede´s, D'agostino or Zabar's (you New Yorkers will identify with these stores). So actually I think financially I'm ahead of the game here.

OK....

Well the article said "With income tax compliance so low, the government seeks revenue in many other ways, imposing a 21 percent sales tax, bank transaction taxes, a "stamp tax" on business contracts, an annual "wealth tax" on personal property and many fees based on the declared value of a person's home."

Sounds like you're paying the sales tax (IVA) of 21%. But you don't mention the "stamp tax", "wealth tax", and the other fees. Not to mention the outrageous banking fees. So?? Are you not complying?? Or maybe your estimate's are a little off.

Lets face it, only masochists or Argentines want to do 'legal' business in Argentina. This is a country of great mistrust in banking, government, and yes, even their fellow man. It goes back hundreds of years and is ingrained in every aspect of the culture.

Speak to an Argie who's spent any substantial amount of time outside his/her country living or studying. They're almost all in an inner conflict of love and pride in such a beautiful place with all it's culture, with the downright shame of the way the culture behaves.

Best part? They truly love the agony of that conflict!!!! Ha!!!

 

[HotYogaTeacher]

When we bought our apartment we insisted that the seller meet us at OUR bank and pick up the money. He carried it AFTER we signed all the paperwork. He's Argentine, he's used to it...

 

[comidaparapensar]

and all they say is "Yo, argentino."

It will never change so long as no one here feels she/he is responsible for this mess.

Poverty is the overarching problem in Argentina, and sadly it is THE political tool. Without poverty, the politicians here couldn't go out to the villas and buy off the poor folks with a pancho or a few monedas for the train. Thus, you'll never see any serious policies to eradicate poverty.

And poverty, my friends, is why there is so much crime in Buenos Aires. If people had legitimate opportunities to make a decent living without slaving away like animals, they'd probably take them. But let's face it, it's much easier to be a motochorro or a pickpocket in this country. Why work for 50 hours (or more) a week, when you can shoot someone in the face and bank a year's salary? It's a dirty job, but hey, yo, argentino.

 

[dennisr]

There are so many hidden and what I choose to call deceptive taxes imposed in Argentina, especially on imported goods. Basically, all imported goods for resale, especially from China, have to be sold/declared at the MSRP: manufacturer’s suggested retail price. If any item is declared at or below 80% of the MSRP, no matter how out of date the pricing is or what the retailer purchased the item for, a punitive 5% VAT is imposed. Furthermore, an additional 10% income tax is imposed. And the kicker is, these punitive taxes are computed at the rate of 200% of the MSRP: reference price. There are no dicontinued model sales in Argentina.

 

[Moxon]

And poverty, my friends, is why there is so much crime in Buenos Aires.

No, it's the divide in wealth which was magnified during the 90's and by the subsequent economic crisis. Argentina emerged closer to the traditional pattern of wealth distribution on the continent, something which has come to define the socio-political landscape of South America. There are plenty of places far poorer than Argentina which have far less crime.

 

[marrokome]

For some strange reason, some money transfer agencies, such as Western Union, in the US, no longer allows delivery of money transfer to Argentina in dollars. I wired money to Argentina last week, and the option to receive the funds in dollars is no longer available. The recipient was only able to receive the money in Pesos. Does anyone know why? Thanks!

 

[dennisr]

For some strange reason, some money transfer agencies, such as Western Union, in the US, no longer allows delivery of money transfer to Argentina in dollars. I wired money to Argentina last week, and the option to receive the funds in dollars is no longer available. The recipient was only able to receive the money in Pesos. Does anyone know why? Thanks!

All money transfers into Argentina and out of Argentina are routed through the Central Bank of Argentina and converted to Pesos, ALL MONEY TRANSFERS. It is a Cristina thing. She holds the dollars and prints the pesos.

 

[fifs2]

Guess if we ever sell up and leave I will strapping money sacks to my 2 kids to get the dolalrs out of the country!