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Table 4

Major Taxes in Argentina in 2001

Tax

Rate(s)

Revenue

Remarks

(%)

(bn pesos)

Federal

Social security taxes

32.9

8.0

Employees pay 11%, including 5% (down from

11% before November 2001) to private pension

funds; employers pay 21.9%. Ends at 57,600

pesos.

Value-added tax

21

15.4

Main rate 21%; special rates of 10.5% and 27%.

Income tax

9­35

10.1

Corporate rate is 35 percent; individual rates

are 9­5 percent, with top rate starting at

120,000 pesos.

Fuel taxes

~50­60

3.4

Rates vary, and were rejiggered in 2001.

Financial transactions tax

0.6

2.9

Imposed in April 2001 at 0.25%, increased in

August. Paid on both bank credits and debits.

Excise taxes

Various

0.5

Part of revenue shared with provinces.

Tariffs

0­35

1.7

Raised on many items March 2001.

All other taxes

Various

3.5

Includes personal assets tax of 0.5­0.75% start -

ing at assets of 102,300 pesos and presumptive

minimum tax of 1% starting at assets of

300,000 pesos. Export taxes imposed in 2002.

Total

45.5

(In addition, 4.0 billion pesos were collected and

paid into workers' private pension accounts.)

Provincial and Local

Tax on gross sales

1.0­4.9

4.4

Averages 3%; many exemptions.

Property tax

Various

1.4

Motor vehicle tax

Various

0.7

A common rate is 3%.

Stamp taxes

1

0.6

Most common rate is 1%.

All other revenue

Various

0.8

Total of these taxes

7.8

Revenue for January­September 2001.

Sources: Administración Federal de Ingresos Públicos, www.afip.gov.ar/sistema/sistema.asp, www.afip.gov.ar/

estadisticas/serie2001.htm ; Fundación Invertir Argentina, www.invertir.com/taxation.html; Ministry of Economy,

Secretariat of Finance, Undersecretariat of Financing, "Main Macroeconomic Indicators," www.mecon.gov.ar/

download/financiamiento/newinf.xls ; and Ministry of Economy, Secretaría de Hacienda, Boletín Fiscal and

"Recursos Tributarios Provinciales," www.mecon.gov.ar/coord-pcias/anexo_presupuestario/ anexo4.htm,

www.mecon.gov.ar/hacienda.

Notes: Revenue amounts are rounded and may not add up to totals. Capital gains tax for individuals and gift and

estate taxes are zero, but real estate sales are subject to a 1.5 percent transfer tax. The provincial governments

receive more than half their revenue from federal revenue sharing. Whereas Table 1 lists tax and nontax revenue,

this table lists only tax revenue.

the analogy is not exact, it may help to think of

the price rises, so revenue in fact falls. The

government as "selling" its services for a

solution for a seller who wants to increase his

"price" that is taxation. A higher price does not

revenue is to reduce his prices.

always result in higher revenues. Past a certain

Argentina's experience with higher tax rates

point, the number of buyers drops faster than

yielding lower tax revenues strongly suggests

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