> 137.4%(!) of the profits for companies
How on Earth does that work? Companies have to pay all of their profit + more in taxes? Or is it some misleading figure which compares expenses like employment taxes to the profits?
How on Earth does that work? Companies have to pay all of their profit + more in taxes? Or is it some misleading figure which compares expenses like employment taxes to the profits?
From the breakdown of that rate[3] it seems the three highest contributors to that rate are
- Turnover tax by City of Buenos Aires of 3% (Total tax rate (% of profit) 53.21%)
- Employer paid - Social security contributions of 23% (Total tax rate (% of profit) 25.94%)
- Tax on financial (check) transactions of 0.6% (Total tax rate (% of profit) 17.25%)
Keep in mind that the last one affects every transaction, so you can _easily_ pay more tax than what you earn just by moving money back and forth.
[1]: https://tradingeconomics.com/argentina/total-tax-rate-percen...
[2]: http://data.worldbank.org/indicator/IC.TAX.TOTL.CP.ZS?year_h...
[3]: http://www.doingbusiness.org/data/exploreeconomies/argentina...