In the midst of the claims to the Supreme Court for the ruling in favor of the City for the co-participation, Kicillof reviewed the management in these three years in office and focused on various political and economic announcements for the management.
Gross Income: Kicillof confirmed that there will be modifications
Among them, the Buenos Aires governor announced that he will make a series of changes in the tax framework. It is the revision in the distribution of the base that determines the Multilateral Agreementthe national body that regulates the distribution of the Gross Income tax base when a company exercises economic activity in more than one provincial jurisdiction.
Thus, Kicillof assured that he will promote the review of the current distribution of the base of the Multilateral Agreement. During his speech at the opening of the 151st ordinary session of the Legislature of the province of Buenos Aires, he confirmed the measure. “We are going to review the Multilateral Agreement that distributes the taxes,” he said.
The president stressed that many large companies have their tax domicile in the city of Buenos Aires, but their main activities are carried out in different provinces. He thus explained that the allocation of the current tax base benefits the CABA, which collects more Gross Income to the detriment of the provinces.
To the Multilateral Agreement Representatives of all provinces sign to prevent and avoid consequences derived from double or multiple taxation within the national territory through local taxes that affect economic activities, Gross Income and any other tax.
In this sense, the executive director of the Buenos Aires Collection Agency (ARBA), Cristian Girardhighlighted that “when the agreement was born, it was born as bilateral, between the province of Buenos Aires and the Federal Capital, and the criterion was to attribute 80% for production expenses and 20% for the final destination of the goods or services.”
“Then, it went to 60-40 proportionality. And since 1977, within the framework of the military dictatorship, a 50%-50% distribution criterion was established, clearly beneficial for the Buenos Aires district; and that, in addition, it is a jurisdiction that concentrates the wealth of the financial market”, explained Girard.
Source: Ambito
