Solidarity Tax on 5% Net Dividends

[toongeorges]

Imagine in a country far far away from Argentina, you save for retirement. Because interest rates on savings are about 0%, you invest in stocks, which pay you a modest dividend. You invest in stocks with an above average gross dividend yield of 3%. After paying taxes, you keep about 2% net dividend for yourself.

Then you would decide to live in Argentina. Argentina tells you that you have to be solidary and that for everything you own in your country of origin above 300000 USD now (and with inflation maybe 100000 USD in one year time), you have to pay a 2,25% tax, because you are such a leech to society to have this money outside of the country. See

Bienes Personales: cómo afecta la ley al contribuyente “medio”

El porcentaje de aumento es superior a aquellos alcanzados con menor nivel de riqueza, debido al incremento del 100% de la escala inicial. Además, el mínimo no imponible no fue actualizado.

www.ambito.com

If you do not earn 2% net dividends, you have to pay over 100% taxes on your income. Argentina does not want investors to come to the country, it wants poor people that need subsidies. Or maybe they know healthy companies that pay 5% net dividends, so the 2,25% tax is tolerable.

Can someone tell me which are the companies paying these high yields?

For reference, the gross dividend yield of the S&P 500: https://ycharts.com/indicators/sp_500_dividend_yield

 

[Bajo_cero2]

Nobody makes bussisness in Argentina for small profits.
A foreign company can by pass this easily opening a local company with the same name. Simple.

 

[lunar]

for everything you own in your country of origin above 300000 USD now (and with inflation maybe 100000 USD in one year time), you have to pay a 2,25% tax

> el mínimo no imponible a partir del cual se paga el tributo es de $2 millones

Only 2 millions pesos are exempt. This is about 33 thousand dollars with current official exchange rate. If you own more than that - you are a rich person and have to express "solidarity".

If you do not earn 2% net dividends, you have to pay over 100% taxes on your income.

How much do you earn and how do you invest your money is irrelevant here. This tax is applied to your assets, not income.

I guess, all the people who complained that "Macri killed the middle class in Argentina!" should scream "Alberto killed the middle class in Argentina!" now?

 

[Bajo_cero2]

> el mínimo no imponible a partir del cual se paga el tributo es de $2 millones

Only 2 millions pesos are exempt. This is about 33 thousand dollars with current official exchange rate. If you own more than that - you are a rich person and have to express "solidarity".



How much do you earn and how do you invest your money is irrelevant here. This tax is applied to your assets, not income.

I guess, all the people who complained that "Macri killed the middle class in Argentina!" should scream "Alberto killed the middle class in Argentina!" now?

While MM made pay income tax to workers (35%) on their salary, you are scandalize that AF is going to derogate it.
The BP tax is looking for those 120 billion usd declared in the MM pardon of tax evasion. It means 2.4 billion usd in tax.

 

[lunar]

While MM made pay income tax to workers (35%) on their salary, you are scandalize that AF is going to derogate it.

We've heard too many things from you that "AF is going" to do that never actually came true.

The BP tax is looking for those 120 billion usd declared in the MM pardon of tax evasion. It means 2.4 billion usd in tax.

Are only people who participated in "blanqueo" targeted? Take an average foreign person who came here with 100 grand of retirement money back in his home country. Does he have to pay like 1600 USD yearly in Argentine "Bienes Personales" taxes on his retirement money?

 

[sts7049]

one thing i'm not clear on is who exactly this applies to. does it include permanent and temporary residents?