Davidglen77
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- Jul 31, 2007
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Each time you go into that retail store and say to yourself, "geez everything is so darn expensive" well here's why - these are the costs of running a business here: Monthly maintenance bank account fee $175 pesos + IVA 21%
E-Mail monthly statement $15 pesos + IVA 21%
Posnet device (to accept credit cards) $200 pesos + IVA monthly
Each credit card transaction 3% of total sale comission paid to bank + IVA(money credited in 30 days)
Each debit card transaction 1.5% of total sale comission paid to bank (money credited in 7 days)
Visa (Maintenance fee) $10 pesos
Mastercard (Maintenance fee) $10 pesos
Argencard (Maintenance fee) $10 pesos
American Express (Maintenance fee) $10 pesos
Everytime a deposit is made 0,06% impuesto al credito
Everytime a withdrawal is made 0,06% impuesto al debito
Book of 50 checks $100 pesos
So bank fees for a small retail business are easily $1,000 to $1,500 pesos per month
Then, if you have employees, on top of their monthly salary, which increases around 20% per year, you have 58% of their salary addtional to pay in social security taxes. Plus a required 13th salary called "aguinaldo", and there are 19 official holidays, if any employee works any of those days they get paid double wages. Transportation of any goods within Argentina is extremely expensive and uncompetitive. All trucks belong to the same union so prices are the same, no factory can search around for a more competitive price to ship their goods to their customers. Even if you are independent and own a truck you have to pay the trucker's union for an expensive permit to be able to operate on the road if you don't you get your truck impounded. Also what they call here "patente" motor vehicle registration tax can easily cost $500 pesos per month and you have to pay it every single month unless the car or truck is over 10 years old. To ship soybeans by truck from LaPampa to the port in Rosario costs just as much as the shipping costs by shipping them to China by sea from Argentina.
Then the bigger taxes 21% IVA on everything, 3% ingresos brutos, then on any profit you make 35% ganancias tax. And we are just talking about goods produced in Argentina, if you are talking about imported goods add another 50% to the cost for customs and import taxes!
Do you understand why things cost what they cost in Argentina? Unless this changes things will never be inexpensive here. All of these costs are built into that bag of chips, refrigerator, and bottle of soda you want to buy. And remember many these costs are not only being paid by the retail store, but by every other part of the chain so by the time you pay for the item these costs have been magnified many times - producer of raw materials, manufacturer, shipper, retail and finally YOU the consumer!
E-Mail monthly statement $15 pesos + IVA 21%
Posnet device (to accept credit cards) $200 pesos + IVA monthly
Each credit card transaction 3% of total sale comission paid to bank + IVA(money credited in 30 days)
Each debit card transaction 1.5% of total sale comission paid to bank (money credited in 7 days)
Visa (Maintenance fee) $10 pesos
Mastercard (Maintenance fee) $10 pesos
Argencard (Maintenance fee) $10 pesos
American Express (Maintenance fee) $10 pesos
Everytime a deposit is made 0,06% impuesto al credito
Everytime a withdrawal is made 0,06% impuesto al debito
Book of 50 checks $100 pesos
So bank fees for a small retail business are easily $1,000 to $1,500 pesos per month
Then, if you have employees, on top of their monthly salary, which increases around 20% per year, you have 58% of their salary addtional to pay in social security taxes. Plus a required 13th salary called "aguinaldo", and there are 19 official holidays, if any employee works any of those days they get paid double wages. Transportation of any goods within Argentina is extremely expensive and uncompetitive. All trucks belong to the same union so prices are the same, no factory can search around for a more competitive price to ship their goods to their customers. Even if you are independent and own a truck you have to pay the trucker's union for an expensive permit to be able to operate on the road if you don't you get your truck impounded. Also what they call here "patente" motor vehicle registration tax can easily cost $500 pesos per month and you have to pay it every single month unless the car or truck is over 10 years old. To ship soybeans by truck from LaPampa to the port in Rosario costs just as much as the shipping costs by shipping them to China by sea from Argentina.
Then the bigger taxes 21% IVA on everything, 3% ingresos brutos, then on any profit you make 35% ganancias tax. And we are just talking about goods produced in Argentina, if you are talking about imported goods add another 50% to the cost for customs and import taxes!
Do you understand why things cost what they cost in Argentina? Unless this changes things will never be inexpensive here. All of these costs are built into that bag of chips, refrigerator, and bottle of soda you want to buy. And remember many these costs are not only being paid by the retail store, but by every other part of the chain so by the time you pay for the item these costs have been magnified many times - producer of raw materials, manufacturer, shipper, retail and finally YOU the consumer!
