Business Insider- Argentina Has The Highest Corporate Taxes

[toongeorges]

137.3% taxes, if you pay them one year after earning them, you can make a profit at 40% inflation ;-)

 

[Dada]

Sorry guys, I have no deep insight into local accounting system, but some bs is just too obvious. I'm not saying the business environment here is excellent, yet there are too many international companies who chose this city as their main hub and whose existence here denies that.

Also, a lot of magic can be done regarding the tax algorithms. You can get them right if you know how, or you just get them gloriously wrong, and come to outrageous results. Corporations do this all the time.

 

[thorsten]

Dada, just the presence of 'main hubs' of big companies isn't saying anything about the topic. A lot of companies don't pay any significant taxes in the so-called main hubs... Also from an economic point of view, one shouldn't focus on the big companies but more on SMEs as they are the real driver for generating wealth.

 

[Matiasba]

Here's a real world example to illustrate the crazy world argentine business lives in. Let's suppose I have a services company with a branch in San Francisco and a branch in Buenos Aires. Each branch has 1 employee who works from their house, so there are no other expenses, just this employee and taxes.

Like Bajo_Cero, I'm a Peronist, so for my example, I want to use the 50/50 model. Half the earnings for me and half the earnings for the worker. So in my company, I want to earn a minimum of $50,000 for me and $50,000 for the worker. In a world with no taxes, I'd need to charge my customers $100,000 for to be able to do this.

So, let's have a look in the USA vs Argentina to see how much I need to charge my customers in order to pay out $50,000 to the worker and $50,000 to myself.

In the USA, I need to charge $147k in order to reach my goal. So, that's $47k in taxes, also 47% total taxes. In Argentina I need to charge $234k to pay out $100k total. That's $134k in taxes (and 134%). So there you go. That's a real world example of how taxes work here.

As you can see, 90% is on the low side.

Excuse me, but I dont think your example has a reliable source. An excell uploaded to google?
In fact, I believe the thing is much more complicated, depending the types of bussiness, its size, its all about negotiating with the State, exemptions, etc.

Its very complicated and it varies A LOT depending on the type of bussiness, on the market, on the taxes.

Besides, and talking in general, I believe in and support huge taxes. The best countries in the world, and of course not talking of the US but countries with better standards of living, have enormous quantity of taxes, a big great State, and not precisely a friendly bussiness enviroment. Those countries are closer to socialism than to capitalism.

 

[sleslie23]

Excuse me, but I dont think your example has a reliable source. An excell uploaded to google?
In fact, I believe the thing is much more complicated, depending the types of bussiness, its size, its all about negotiating with the State, exemptions, etc.

Its very complicated and it varies A LOT depending on the type of bussiness, on the market, on the taxes.

Besides, and talking in general, I believe in and support huge taxes. The best countries in the world, and of course not talking of the US but countries with better standards of living, have enormous quantity of taxes, a big great State, and not precisely a friendly bussiness enviroment. Those countries are closer to socialism than to capitalism.

Once again, you are letting your ideology confuse your thinking. You are confusing income tax rates with corporate tax rates. Scandinavian countries generally have higher personal income tax rates, but lower corporate taxes rates. Sweden, for example, has an effective tax rate of 18% for multinationals. After deductions, the median tax rate in the US is 28% for multinationals (Source: Bloomberg)

Personally, I also tend to favor Scandinavian types systems more. However, I don't favor just making shit up to try to prove a point.

 

[Matiasba]

I really doubt than Scandinavian countries are all 'for the corporations'. At least I doubt than they can gain more there than here. I rather think thet they protect a lot their PYMES, their not so big industries. Just like in almost every European country, the corporations, as well as people, have a lot of taxes.

 

[thorsten]

The best countries in the world, and of course not talking of the US but countries with better standards of living, have enormous quantity of taxes, a big great State, and not precisely a friendly bussiness enviroment. Those countries are closer to socialism than to capitalism.

So which non-business-friendly prospering countries are you talking about? Clearly not Scandinavian countries as they typically perform excellent in terms of providing an easy environment to do business.

 

[mikic007]

As customer I can confirm, that Argentina must be ridiculously taxed. Same services cost me the same or more than in richer countries, while most of workers have significantly lower salaries. Or the owners are just richer? If so, I don't see it.

 

[ElQueso]

I sometimes use words like "I doubt" or "I rather think" when I am not sure of something or talking in an absence of facts when related to my own personal experiences. I try not to use such words when arguing against published facts unless I have other facts to refute a fact or set of facts that may be erroneous. But then again, I was taught to think critically and not make assumptions in a debate.

Why do you guys (Bajo and Counting Matias) continue to think Argentina is such a great place to do business? Particularly in absence of any actual proof (the ability to run a business here does not say it is a good place to do business, in any sense of the word) and in the face of proof to the contrary (other places the lower the corporate tax rate often higher the number of corporations and people employed by those corporations. Opposite here). It really boggles my mind. The only thing I can think of is that you really honestly do believe the propaganda that comes from the mouths of those who promise so much and deliver so little here. And blame anyone they can find, except themselves, for their failures. Successfully. Time after time.

Even after someone quotes tax rates for other countries, you refuse to believe that they could have such a low corporate tax rate in "Scandinavian" countries. Where is your proof to refute that beyond "I really doubt than [sic] Scandinavian countries are all 'for the corporations'." That's the way you see things, isn't it? For or against the corporations. If you're for the corporations, you're obvious against the people, and if you are for the people, you can't possibly be for the corporations.

What a narrow way to view the world...

 

[camberiu]

I really doubt than Scandinavian countries are all 'for the corporations'. At least I doubt than they can gain more there than here. I rather think thet they protect a lot their PYMES, their not so big industries. Just like in almost every European country, the corporations, as well as people, have a lot of taxes.

The Heritage Foundation every year ranks countries based on economic freedom (tax laws, business regulations, property rights,etc...)

Here are the leading countries in terms of creating friendly business environments, or being "for the corporations", as you put it:

Now here is where Argentina is, sharing the spot with some other countries that, like Argentina, are "against the corporation". A truly charming bunch of nations. You are in very good company.