Argentina tax burden impacts industry and agriculture

Tax experts in Argentina are highlighting the significant impact of fiscal pressure on various sectors, particularly industry and agriculture. Tax specialists estimate that industrial companies may work from January until mid-August solely to cover taxes and social security contributions before generating any net profitability. One expert noted that for a company with a net utility of 5 on 100 in sales, the tax and social security burden can reach approximately 9 points, potentially doubling the profit if such loads were absent.

In the agricultural sector, experts recommend implementing fiscal pre-closures to manage income tax liabilities. By projecting income, expenses, and inventory values before the fiscal year ends, agribusinesses can better manage liquidity, investments, and financing. This proactive approach is considered essential in a landscape of tight margins and high working capital needs.

Estimates regarding the total tax burden vary. While the 2026 Budget project anticipates a national tax pressure of 22.74% of GDP, other institutions like IARAF and IIEP-UBA provide estimates ranging from 20.8% to 26.9% when including provincial taxes. Additionally, the OECD estimated that the tax burden on labor in Argentina was approximately 44% of labor costs in 2023.