This Tuesday, the Executive Branch will present to Congress a bill that, among other things, changes the name of the Profits to the Personal Income Tax Act. The new regulations will come into force the minimum level is 1.3 million dollars gross per month from which the tax begins to be taxed, much less than the current minimum threshold of $2,340,000.
In relation to the current pocket income it representson average, a reduction of 25%. in the net salary of approximately 800,000 workers in the public and private sectors, apart from any worsening due to higher inflation. And other 100,000 which were still reached by profits, lowering the non-taxable minimum, They will pay much more. The higher the income, proportionately, the greater the drop in out-of-pocket wages would be.
Another change introduced by the new project is that The scales will be updated quarterly in line with inflation. And the new project also authorizes the delegation to the Executive for updating the amounts in the tablesS.
A name change is also foreseen within the project: Income Tax a personal income tax.
In September 2023, a month before the general elections, the Minister of Economy, and then presidential candidate, Sergio Massa, promoted a project to amend the income tax law which provided for, among other issues, in eliminating the fourth category and, therefore, exempting approximately 700,000 employees from payment in a dependent relationship.
This project was approved with 135 votes in favor of 103 of the deputies and had, among others, the support of Javier Milei himself and his vice president in the presidency, Victoria Villarruel.
The project envisaged that from January (i.e. this month) Workers earning less than $2,340,000 gross (15 SMVM) paid no tax, and those earning more paid less.
Therefore, if the official project is approved, around 800 thousand employees will return to pay Profit and others100,000 will pay more.
In turn, under the law currently in force, these 15 SMVMs were adjusted in January based on the value of that month’s minimum wage in effect during the first half of the year. And with the SMVM value of July, the second half of the year.
The scales will be updated quarterly in line with inflation.
The presented project also authorizes the delegation to the Executive for updating the tariff amounts.
Who pays profits today
The current minimum to pay profits is 15 minimum wages. In January, equals $2,340,000
The values are updated semi-annually. It is adjusted annually in January and July.
SN
Source: Clarin
