Argentina tops global tax burden ranking for formal sector

The Argentine Industrial Union (UIA) released a study comparing eight taxes in 30 economies, finding that the formal sector in Argentina faces a tax burden of 56% of GDP – six percentage points higher than in 2023. While Argentina ranks 12th overall when the informal economy is included, it leads the ranking when only formally registered businesses are considered.

The report shows Argentina has the highest effective rates on corporate income tax (35% plus a 7% dividend levy), wealth tax, stamp tax, municipal taxes and gross income taxes, and it is one of only two countries imposing export duties, with an 8.68% rate. UIA proposes a series of reforms, including a flat 25% corporate tax, automatic VAT credit refunds, removal of retention regimes, and a gradual reduction of gross‑income taxes for industry to zero.

The study arrived as industrial output remains about 10% below 2022 levels and roughly 70,000 jobs have been lost, highlighting growing pressure on Argentine companies.