President Alberto Fernández announced today, together with the Minister of the Economy, Martín Guzmán, the sending to Congress of the unexpected income project for companies that increased their income due to the increase in prices due to the war in Ukraine and affirmed that Parliament has “the obligation to accompany” the initiative.
The project will be admitted by Deputies and counts in advance on the rejection of Together for Change, which spoke out against the creation of new taxes, when almost a month ago La Rosada announced that it seeks to promote this measure.
“It’s not something out of the box, the world did it and is doing it, Great Britain does it, Italy does it,” Fernández said about taxing unexpected income, adding: “Congress has the obligation to accompany the project, it is an obligation of all deputies and senators, we need a few not to win so many to the detriment of the majority”.
“That some win with the effects of the war is immoral and should not be allowed,” he stated and complained about the rise in commodity prices due to the war.
Which companies will be reached
The project reaches companies with Net Taxable Income or Accounting Income of more than $1,000 million and that meets at least one of these conditions:
- Your profit margin (accounting profit on your income) is greater than 10% in 2022
- Has had an increase in the profit margin in 2022 in relation to 2021 of at least 20%.
the aliquot
The text prepared by the Ministry of Economy led by Guzmán proposed to apply to that income a aliquot of 15%. They also reported that it will be valid only for fiscal year 2022, based on the balances completed after the enactment of the law and for one year from that date.
“There are companies that benefit from the rise in international prices due to the war and, consequently, sell their products at higher prices, obtaining an extraordinary profit that does not come from improvements in productivity, greater investments, or greater production. but simply from the context”detailed the Ministry of Economy in a press release.
And he added: “A mechanism to reduce this dynamic of concentration of wealth in a few hands is through an aliquot to the “unexpected income” that allows taxing the extraordinary profits resulting from the war and giving more resources to the National State and the provinces to redistribute”
Currently, countries such as Italy and the United Kingdom apply similar taxes.
In Italy, an unexpected income tax was approved for energy companies with increases of at least 5 million euros in their profits between October 2021 and March 2022, to which a 10% rate is applied, which, in May, it was announced that it seeks to rise to 25%, and with which it is expected to raise 4,000 million euros
In the United Kingdom, Prime Minister Boris Johnson announced that he will seek to tax unexpected income at a rate of 25% to oil and gas producing energy companies, with which it is expected to raise US $ 6,300 million that will be used to subsidize 8 million of homes.
Source: Ambito
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