A recent message in the social network X of the president of the Chamber of Deputies of the Nation, Martín Menem, unleashed a wave of criticism of accountants and business entities to the Gross Income Tax that the provinces charge. While tax aliquots are usually high and is considered as the most distorting of all, it is not an easy to remove. Explain 80% of the income of subnational states.
This is indicated by a report of the Mediterranean Foundation based on tax revenue data from 20 provinces to November last year. “The Provincial tax revenues fell 8 to 9% real annual, with a decrease of 10.6% in gross income, Its main tribute, ”says the report.
In that sense, the study indicates that Neuquén was the exception, with increases due to the 11% hydrocarbon activity accumulated until November. Instead, the City of Buenos Aires had a real drop of 17% while in Formosa 25%collapsed.
The importance of the controversial tribute in the provincial coffers makes it Impossible to eliminate it without a fiscal pact with the Nation, within the framework of an integral tax reform. The only chance is to transfer the value added tax (VAT). President Javier Milei had said in September last year when he went to Congress to present the 2025 budget that is the intention of his government to return the collection power to the provinces. Keep in mind that COnstitutionally they are preceded to the nation and have the faculty of origin to collect taxes. Strictly speaking, the nation has the power to collect only the “customs income”, so that the collection of taxes can be said that it is delegated in the federal state, which then distributes resources through federal co -participation.
As indicated by the Mediterranean report, 80.2% of the provincial own resources were generated last year from gross income; 7.4% through the stamp tax; 5.6%, real estate; 4%, cars patents and 2.7% other encumbrances. If the 2017 Fiscal Pact had been fulfilled that the governors had signed then with former President Mauricio Macri, he would not currently have imposed on gross income for productive activities, since he set a gradual reduction schedule that ended in 2023.
A post that generated expectations
On January 24, the economist Darío Epstein had posted on social networks that “the time was to get the Sircreb” what was retaken by the president of deputies, Martín Menem with the comment “The time came”. Both refer to the Bank Accrediting Collection and Control System. It is a Mechanism agreed between the provinces that orders banks to collect gross income advances every time a movement is made in a bank account. The mechanism thus generates balances in favor of taxpayers who never recover. And not only that: if a Morón company, for example, sells something to a customer in Jujuy, both jurisdictions will “blow” a part of gross income no matter how the company is based in another province. The system also generates huge bureaucratic costs to companies that every month have to make gross income calculations for several jurisdictions even if they are based in one. Menem’s post was thinking that the government is working on some mechanism to eliminate Sircreb or put some limit.
Overlapping claims
In turn, A recent decision of the Santa Fe government to increase the aliquot of gross income to digital platforms also aroused a wave of complaints, In principle from the market company Libre, by Marcos Galperin, of recognized support to the libertarian government. From an order to eliminate Sircreb, a total questioning of the main provincial tax was referred. In this regard, The group of 6which includes the Argentine Industrial Union (UIA), the Rural Company (MSR), the Stock Exchange, the Chamber of Commerce (CAC), Rural Confederations (CRA) and ADEBA (Argentine banks), asked the provinces and municipalities that “Accompany the competitiveness agenda of Argentine companies ” Through the decline of the tax burden in the provinces, through the collection of gross income, and the review of the “municipal fees that have become a local financing method rather than in an effective consideration”.
Caputo against governors and mayors
A study of PyME Observatory Foundation determined that the Gross Income Tax and Municipal Rates represent 9% of the cost structure of industrial companies. Such magnitude takes them out of the importation, to the extent that the economic process leads to a delay of the exchange rate. Tax costs rise in dollars.
That is why from the Ministry of Economy is maintained a persistent claim to the provinces and municipalities to reduce fiscal pressure on the companys. He has already filed a claim before the Supreme Court against the municipality of Lomas de Zamora against the so -called road rate, which is a communal tax for the sale of fuels.
What is the difference between gross income and VAT
Although both have to do with turnover, they are different. Gross income is a true tribute to billing in “waterfall.” Assuming that a certain productive activity is reached with 3%, in each section of the value chain, 3%is charged. The longer the chain of an activity, the more imposed it is charged and ends it by paying the final consumer.
VAT actually, as its name says, is a tribute that is charged to the “value that adds” each chain factor. A company charges its final consumer client 21% and with it generates a loan in its favor. When you buy your supplier pays 21%, that is, it generates a debiteither. It will only pay the differential between credit and debit.
Source: Ambito

I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.