Argentine industrialists demand Tax exemption Allowing them to regain competitiveness against neighboring countries, especially Paraguay. The comparison between the tax burden between the two economies has returned to the center of discussion, as the government prepares for a settlement Tax reform Which will be sent to Congress in the coming weeks.
Comparison that reveals differences
Show an exchange recently broadcast by La Fábrica Podcast The tax difference is abysmal Between Argentina and Paraguay. They participated in the conversation Oliver MaltzArgentine plastics manufacturer, and Nicolas Riquelmepresident of the Union of Industrial Youth of Paraguay (UIP), detailed, point by point, the percentage paid by companies in each country.
in Argentinahe Value added tax Climb to 21%while in Paraguay He is from 10%. the Gross incomeIt is one of the taxes most criticized for its cumulative effect or “Waterfall effect“, ranging between 3% and 6%and They do not exist in Paraguay.
regarding income taxArgentine companies pay taxes 35%in front of 10% Business income tax in Paraguay.
he Check the taxwhich in Argentina taxes with a 1.2% Banking movements unavailable In the neighboring country.
In matters Municipal taxesParaguay applies a scheme per square meter, while in Argentina it is calculated on Invoiceswith the values in between 3% and 6%according to the municipality.
Workloads and competitiveness
The difference also extends to the workplace. According to businessmen, in Paraguay Workloads represents a 25.5% (16.5% are company officials and 9% are employees), while in Argentina they rise to 48%.
However, tax pressure decreases It does not automatically translate into greater formality. According to the National Institute of Statistics (INE) of Paraguay, 62.5% Of the working population working in Informality. In Argentina, according to data from Indicthe index is 43.2%.
Argentina’s international position
he Argentine Institute of Financial Analysis (IARAF) Argentina put in Place 26 between 39 countries In matters Total tax burdenTaking into account personal contributions, employer contributions and income tax.
With data up to 2024, the Total labor cost In Argentina up to 1,744 US dollarsFrom her 1,366 US dollars Corresponds to the gross salary. In comparison, the national average Organization for Economic Cooperation and Development He is from 4,446 US dollars and 3,856 US dollarsrespectively.
How the system of contributions and contributions is formed
In the Argentine scheme, both Workers like Employers They make contributions to finance social security, social works and other complementary systems.
Personal contributions from employees:
These discounts are applied directly to Gross salary From the worker.
Employer contributions: Employers pay, on average, a 27% In addition to taxable salary. Of this total:
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12.71% goes to Argentine Integrated Retirement System (SIPA).
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1.62% to INSSJP.
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5.56% to Family allowances subsystem.
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1.11% to National Employment Fund.
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6% to National system of social works And to Solidarity Redistribution Fund.
Income tax and average salaries
The IARAF study indicated that during 2024,… Average salary He was falling Less than the taxable minimumso The actual burden of income tax was null. This situation was maintained both in the previous scheme and in The new system introduced by the Basic Law In the middle of that year.
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