Fiscal Independence Day: This year runs from June 19 to July 20

The day of fiscal independence for a family, an indicator of the tax burden that shows the day the Argentine citizen stops working for the state, began on June 19 and could reach the 20 July, according to According to a report of the Argentine Institute of Tax Analysis (IARAF)

this index (commonly used in the world to illustrate the level of household income) was the most used for the third consecutive quarter. the tax burden of a country) allows to establish the number of fictitious days that an individual must allocate for the payment of different taxes to the state as of January 1 of each year.

In the case of Argentina, a formal wage earner works in 2018 between 171 and 202 days to comply with the tax obligations of the three levels of government.

"In 2018 and for the third consecutive year there is a reduction in the number of days required to pay taxes, for the three highest income strata, extending in this occasion also to the stratum lower income level, "said the IARAF.

In 2017, the number of days was 197 to 216. And in 2016, from 205 to 211, reviewed the Institute.

"This reduction is due to the updating of the non-taxable minimums and sections of the income tax balance that affects employees in terms of dependency, the reduction of the share of the personal property tax, and at the beginning of the scale of reduction of employer contributions provided for by the law on tax reform. "

] Although the tax burden levels remain at the level of sub-national governments, because They vary at a rate similar to nominal wage growth. And the changes introduced by the Tax Pact refer to intermediate and non-final links of the productive-commercial chain.

IARAF noticed that the reduction of days to pay taxes began to extend to the lower stratum, which does not have to pay income tax or personal badets, but who will benefit most from the amount to be deducted from the remuneration on which employer contributions to the pension plan are calculated, of which the first payment of $ 2,400 per month has begun to be applied According to the results obtained by IARAF, the full formal tax burden in 2018 would range between 47% and 55.4% of the total income (including employer contributions) of a family according to the sections.

The case where the charge rises to 47% corresponds to those who do not pay income tax, whereas in the three remaining cases, If this tax is taxed, its incidence is higher. high for a greater part of the income under consideration.

These results stem from the measure in 2018 of the formal tax burden exerted by the Argentine State at its three levels (national, provincial and municipal) on a salaried family, through the collection of direct and indirect taxes (not only when collecting wages but consuming goods and services), including employer contributions.

Meanwhile, the effective tax burden for the economy, the state takes as a tax recovery) record levels of evidence in recent years, though that is not the case. it would have moderated from 2016: in 2015 reached 34.8%; in 2016, 32.7%, and in 2017, it stands at 33.8%.

IARAF emphasized the need to continue moving forward in a tax reform that covers indirect taxes that affect consumption (such as VAT or the provincial gross income tax), to accompany the projected reduction in taxes. taxes on labor to deepen the reduction in the tax burden that falls on lower income levels. "