Through a statement, the AFIP confirmed this Friday that, starting from January 1st, employers will have to regulate the salaries of workers in employment relationships according to the new profit law which exempts from paying this tax those who earn less than 15 minimum wages (SMVM), i.e. 2,340,000 dollars gross.
However, if the government sends out a new profit bill, as it announced, to return to eliminating this tax, and it is passed by Congress, Employers must recalculate retroactive taxes in January and deduct from the salary the amounts that correspond to the new law.
Tax tribunal Cesar Litvin said this Clarion that until December 31, the worker’s income up to 15 SMVM (with the value in force in October, i.e. 1,980,000 dollars) does not provide for income withholding. Law 27,725 has been in force since January, promoted by Sergio Massa, who confirmed the decree of the 15th SMVM which, with the value of January, rises to 2,340,000 dollars).
But if the bill that will send the Executive is approved by Congress, what could happen is precisely this exempt workers are covered by profits and that in the subsequent remuneration he is obliged to do so keep the difference retroactive to January as this is a calendar year calculation tax.
The Government did not include wage reform in the megaproject sent to Congress. And they say it They will send a separate project with some changes compared to that which emerged weeks ago.
As explained Clarionaccording to the draft of the bill that the Government has released – and which could undergo some changes, starting from January 2024, Workers in an employee relationship will begin paying income tax on wages of $976,516 gross per month. And those who exceed that figure will pay profits on the excess of the non-taxable minimum (MNI), which is set at $634,371 for single employees and $839,180 for married employees with 2 children.
In the case of Self-employed workers will not pay earnings up to $435,097 per month (single with no children) and up to $605,088 (married with 2 children).
In relation to the current income in your pocket it represents, on average, a 20% reduction on take home pay. The higher the income, proportionately, the greater the decline in living wages would be, without considering the inflationary impact.
With this minimum wage, profits would reach 1.5 million workers, with rates reaching up to 35%. This figure could grow due to the salary increases they could receive during 2024 due to that level and the balance They would remain unchanged through 2024.
This reduction in income in your pocket, in addition to the drop in income due to the increase in inflation, explains why Minister Luis Caputo said this The change in profits will help improve the collection of this tax.
The income tax exemption for most employees (98%), which took effect in September, was ratified for 2024 by law 27,725 passed in Congress with the support of the then national deputy Javier Milei, on the basis that it helped reduce taxes
Source: Clarin
