Ganancias - Oficina de Presupuesto del Congreso

ANALYSIS OF NATIONAL TAX REVENUE – AUGUST 2021

by Nicolas Perez | Sep 6, 2021 | Tax Revenue

Tax revenue totaled ARS1.005 trillion in August, an increase of 64.2% year-on-year (YoY). Adjusted for inflation, the increase was 8.1% YoY.

Among the tax resources, the increase in VAT, Tax on Credits and Debits and Profits stand out. Export Duties and Social Security resources continued to show a good performance.

The low comparison base attributable to the economic effects of the Mandatory Preventive Social Isolation (ASPO) that came into force on March 20, 2020, the increase in international prices of raw materials and the increase in the nominal exchange rate (32.6% YoY) contributed favorably to these results, although a deceleration is observed.

ANALYSIS OF NATIONAL TAX REVENUE – JULY 2021

by Nicolas Perez | Aug 6, 2021 | Tax Revenue

Tax revenues totaled ARS933.2 billion in July, which implied an increase of 66.9% year-on-year (YoY). Adjusted for inflation, it expanded 9.9% YoY.

Last month, Value Added Tax (VAT), the main tax source, grew 23.1% in real terms. The Tax on Credits and Debits and Income Tax also rose significantly.

Wealth Tax decreased (43.5%) because of the deferral of the due date for the month of August.

Export Duties (100.8%) and Social Security resources continued to show a good performance.

The low comparison base attributable to the economic effects of the Mandatory Preventive Social Isolation (ASPO) that came into effect on March 20, 2020, the increase in international commodity prices and the increase in the nominal exchange rate (34.6% YoY) contributed favorably to these results.

ANALYSIS OF NATIONAL TAX REVENUE – APRIL 2021

by Nicolas Perez | May 7, 2021 | Tax Revenue

In April, national tax revenue totaled AR$817.88 billion, the highest increase since April 2003, with a real increase of 40.8% and a nominal increase of 105.5%.

The nominal exchange rate increase and the low base of comparison for last year -when the economic activity was restricted by the preventive and mandatory social isolation- partly explain this result.

Social Security resources grew in real terms for the first time since September 2020.

The most significant variations above inflation were those of Income Tax (36.4% YoY), VAT (35.7%), Wealth Tax (224.5% YoY) and co-participated taxes (154.4% YoY), in some cases because of regulatory amendments that expanded the tax base.

Tax revenue had a negative real increase since January 2020, a situation that was reversed in September 2020 steadily up to date.

PAIS Tax collection shrank again and accrued USD 2.17 billion since its creation.

ANALYSIS OF NATIONAL TAX REVENUE – NOVEMBER 2020

by Juan Fourcaud | Dec 9, 2020 | Tax Revenue

Tax revenue amounted to AR$649 billion in November, a nominal growth of 36.7% YoY, which is explained by the gradual increase in the level of activity, but mainly due to the payment facilities arising from Income Tax and Wealth Tax deadlines that this year took place in August. Revenue from the second income tax collection for transactions subject to PAIS tax also had a positive effect.

The real variation was 0.1% YoY in November, the third registered so far this year, partly due to the modified calendar of tax deadlines, the relaxation of social isolation, and a lower base of comparison with respect to November 2019.

In absolute terms, the taxes that most contributed to the nominal increase in revenue were Income Tax (39%), Value Added Tax (28.6%), Wealth Tax (10.6%) and Social Security resources (12.5%). PAIS Tax decreased its share due to greater restrictions applicable to taxable transactions. For this reason, it contributed only AR$8.5 billion.

TAX BURDEN ON PRODUCTIVE ACTIVITY – METHODOLOGY

by Juan Fourcaud | Nov 26, 2020 | Tax Policy and Fiscal Federalism

The OPC is developing a project to analyze the tax burden on a set of economic activities at national, provincial, and municipal levels in Argentina, a research that covers 30 cities in 23 provinces and the Autonomous City of Buenos Aires.

This work is a methodological approach, which includes a mapping of provincial taxes and their capacity to provide public funds.
The overview of the main taxes, their legal basis and their collection impact aims to determine, among other things, the true magnitude of tax burden, tax burden on employment and the amount of resources generated by each tax.

Due to difficulties in establishing benchmarks and making comparative measurements, the focus will be on measuring the “theoretical tax burden”, according to the place where each activity is carried out. The assumption will be that each activity is carried out only in one place of residence and is taxed in only one jurisdiction.

In summary, this study, focused on 30 cities and on 5 sectors of activity, has revealed the existence of more than 150 taxes on economic activity in Argentina with places that accumulate between the three levels of government from 21 to 40 different taxes, which gives clear indications of the difficulty faced by any economic agent in complying with them.

The complex universe of the provincial tax system makes it difficult to have a solid basis for comparison and its performance is different per jurisdiction: unlike 2018, where some provinces took advantage of the opportunity to increase their tax rates up to the limit allowed by law, in 2019 there is a declining trend.

The permanent modifications in rates and fees diminish the legality and transparency of the system.

ANALYSIS OF NATIONAL TAX REVENUE – OCTOBER 2020

by Juan Fourcaud | Nov 6, 2020 | Tax Revenue

National tax revenue showed a real increase of 6% in October, the second increase recorded so far this year, partly due to adjustments in the tax deadline calendar and the relaxation of social isolation; and the lower comparison base against October 2019.

Total revenues totaled AR$642.1 billion, which implied a nominal growth of 43.9% year on year. This growth in revenue is explained by the gradual increase in the level of activity but mainly by the collection of the second installment of the payment facilities for Income Tax and Wealth Tax, which this year operated in August.

The revenue from the first income tax levied on transactions subject to PAIS tax also had a positive impact.
In absolute terms, the taxes that most contributed to the nominal increase in revenue were Income Tax (31%), Value Added Tax (21.3%), Wealth Tax (17%) and Social Security resources (15.7%). PAIS Tax decreased its share due to greater restrictions applicable to taxable transactions. For this reason, it contributed only AR$8.5 billion.