The unexpected income project in Argentina was sent to the National Congress and the tax on extra profits from the war between Russia and Ukraine might finally reach at least 350 companies from all sectors, according to official calculations.
The 15% rate that will be applied to extraordinary profits “will take large companies from all sectors as subjects” and applies to a fiscal year, highlights the message of the project signed by President Alberto Fernández, the Chief of Staff Juan Manzur and the Minister of Economy, Martín Guzmán.
If 2022 maintains the pace of 2021, some 600 companies are expected to have a profit of more than $1 billion (8.2 million dollars), which is the first threshold set by the project. “It is the maximum universe”, they clarify from the Executive. Then you have to see which ones exceed 10% profitability in the year or 20% net profit once morest 2021. “The very large ones can meet all the requirements”, that represents 60% of those that exceed $1,000 million, which leaves at least 350 companies within the windfall.
In this context, the estimated collection reaches 1,000 million dollars at the official exchange rate and would be paid in May 2023, but the Government does not rule out that the Federal Administration of Public Revenues (AFIP) establish advances or withholdings, for which part of that collection might enter this year and help meet the fiscal goal in the program with the IMF, scheduled for 2.5% of GDP this year while economists already raise it to 3 percent.
Although payments on account can be implemented this year, the Executive assures that “there is no fiscal or cash intention, but a more equitable distribution.”
In his presentation, Guzmán indicated yesterday that the motivation for the tax is equity between sectors of society. Naturally, the entire system of advances and withholdings is going to be subject to AFIP regulation and there may be collection in 2022. In relation to questions from businessmen, who raised the confiscation of the measure and warn that there are companies that might pay “up to the 50%” for Profits.
In the Government they point out that when talking regarding 50%, “it will never be such. The progressive scale is in force for Profits. It is 15% that has to do with the surplus, the difference between the net taxable profit, adjusted by IPC. I would never be giving 50% “, they emphasize. Meanwhile, they recognize the confiscation can be a discussion for the courts.
