Argentinatogether with Indiaare the countries that have the highest corporate income tax rates in the G20 at 35%according to a survey by Visual Capitalist with data from Trading Economics.
However, both countries have a progressive tax scale, so this headline figure may apply only to a smaller subset of companies. For foreign companies with a “permanent entity” in India, the rate exceeds 40%.
What the analysis also details is that the countries BRICS They cover the entire spectrum of corporate tax rates, from the highest (India, Brazil) to the intermediate (South Africa, China) to the lowest (Russia).
In addition, most of the G7 is grouped in the middle ranges (24-30%), with Japan being the highest exception (31%) and the United States the lowest exception (21%). In fact, after Saudi Arabia and Russia (20%), USA has the third-lowest corporate tax rate of all G20 economies.
Collection: VAT and Income Tax together fell 16.7% (real) in July
The fall of the Economic activity continues to negatively impact tax collectionas shown by the behavior of several taxes linked to the domestic market and consumption. According to private estimates, the amount produced by VAT and Income Tax fell in real terms by 16.7% in July compared to the same month in 2023.
The data anticipates that the July collection, that the Government will be announcing this Thursday, will once again show extremely depressed data.
According to the Argentine Institute of Fiscal Analysis (IARAF), There was a poor performance in the collection of the income tax Profits, down 24% year-on-year in real terms, and VAT, down 11.7%.
Together, the collection of both taxes “would have registered a real year-on-year fall of 16.7%”, says the study center headed by the economist Nadin Argañaraz. The specialist specifies that “In the cumulative total for the first 7 months of the year, the real year-on-year variation would have been negative by 9.4% for both taxes.”
For its part, the consulting firm Politikon Chaco estimated a 24% decrease in Income Tax and of the Value Added Tax of 11.7%.
Real declines are also observed in the Internal Taxes of 18.1% and Other Shared Taxes of 13%. In addition, the resources from the tax on Personal Property Tax of 90.4%; the Electric Energy Regime, 15.3% and the Monotributo, with 8.7%.
On the other hand, the Tax on Liquid fuels recorded an increase of 80% compared to last yeardue to the increase in taxes imposed by the Government in the first months of the year, as fuel consumption in Argentina is falling.
From these data it can be inferred that July tax collections will again register a sharp drop. Last month’s figure was 14% in real terms.
Source: Ambito
