What are the main types of taxes collected by AFIP?

What are the main types of taxes collected by AFIP?

• A. Property tax, sales tax, and corporate tax
• B. Income tax, VAT, and social security contributions
• C. Capital gains tax, inheritance tax, and income tax
• D. Excise tax, import tax, and income tax

Answer: (B)

The main types of taxes collected by AFIP, which stands for the Federal Administration of Public Revenue in Argentina, primarily include income tax, value-added tax (VAT), and social security contributions. Income tax is a fundamental revenue source for the government, taxing the earnings of individuals and corporations. VAT is a consumption tax placed on goods and services, contributing significantly to public finances as it is collected at each stage of production and distribution. Social security contributions provide funding for public welfare programs, including health care and pensions, ensuring that citizens have access to essential services. Understanding these primary tax types is crucial because they represent the backbone of Argentina's tax structure, affecting individuals and businesses alike. The other options mention taxes that, while relevant in specific contexts, do not cover the comprehensive scope that AFIP administers. For example, property tax and capital gains tax may be collected by local governments or various jurisdictions but are not under AFIP's direct purview as major tax categories.

The main types of taxes collected by AFIP, which stands for the Federal Administration of Public Revenue in Argentina, primarily include income tax, value-added tax (VAT), and social security contributions.

Income tax is a fundamental revenue source for the government, taxing the earnings of individuals and corporations. VAT is a consumption tax placed on goods and services, contributing significantly to public finances as it is collected at each stage of production and distribution. Social security contributions provide funding for public welfare programs, including health care and pensions, ensuring that citizens have access to essential services.

Understanding these primary tax types is crucial because they represent the backbone of Argentina's tax structure, affecting individuals and businesses alike. The other options mention taxes that, while relevant in specific contexts, do not cover the comprehensive scope that AFIP administers. For example, property tax and capital gains tax may be collected by local governments or various jurisdictions but are not under AFIP's direct purview as major tax categories.