Friday, October 26, 2012

Dealing With Property And Other Forms Of Taxes In Argentina

Taxes are handled a little differently in Argentina in comparison to the United States. Argentineans don’t pay annual taxes based on earned income every year. The government collects taxes in different ways. Vehicles and Properties
Regardless of whether you’re done making payments on your car or home, you still have to pay monthly taxes.

There are two types of taxes:
·         Municipal
·         Provincial
You’re fine as long as the municipal and provincial taxes are paid for in the province you are residing in.
Other Types of Taxes
Taxes are automatically added to the final total of your store purchase, but you’re not likely to see how much you’ve been taxed on a credit card receipt. Taxes are also deducted from employee paychecks.

Tax Rate In Argentina
The tax rate is currently at 21 percent of any purchase, or bill for services rendered.

Who Controls The Taxes In Argentina?
AFIP. Similar to its American counterpart, the IRS, The AFIP controls the way that taxes are collected. They also ensure that Argentinean businesses are legit, registered, and report their tax earnings and make the appropriate payments to the provincial government.

The Downside To Not Collecting Annual Income Taxes
Some might say that the national debt in Argentina would be easier to manage if they adopted a similar practice of collecting annual income taxes like they do in the United States. Unfortunately, the current practice has led some provincial governments to collect taxes in other ways, such as handing out traffic tickets with excessive fines or raising the cost of bread or utilities. Then again, Argentineans get free healthcare and free higher education so it’s understandable that the government would find other ways of collecting taxes from the public.

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