The Argentine wealthy now face massive tax bills

A few days after the inauguration in December, huge tax increases were voted in by congress and just to give an example, many are now facing 10 fold tax increases, according to my accountant.

Someone paying US$5k last year is now facing a bill of around US$50k, or at least the equivalent in toilet paper money (pesos).

Needless to say, Argentine accountants are in an unenviable position right now.

I should have been more clear. This is a wealth tax in addition to normal income tax and applies to those who have AR$200million (US$1.5million?) or more, either in this country or abroad.

One wealthy person sued AFIP recently and won the case, but it's now on appeal. This will give hope to others who who are facing enormous new tax bills and will have to cough up on or before 31st March.

Quote

It will be 2.25% for those who are between $ 300 and $ 400 million, 2.5% for those who have between $ 400 and $ 600 million, and 2.75%, for those assets between $ 600 and $ 800 million. The contribution will go up to 3% in the case of fortunes between $ 800 and $ 1500 million.

Source

Has anyone yet explained how Maximo Kirchner has amassed AR$292m and his sister Florencia a similar amount? They have even got the bare faced cheek to pay the wealth tax in instalments, as permitted by the tax authorities.

Apparently they have to pay around AR$7m each and it's ironic that Maximo is the one who devised this bill in the first place, yet his funds are under an embargo but not free from this onerous tax.