Profits and single tax: what new features does the Government propose?

Workers in a dependent relationship who They earn more than $1,350,000 gross per monthin the case of singles without children, and with more than 1,550,000 dollars, those married with 2 children will pay income tax, if Congress approves the bill that Congress will send to Congress and to which Clarín agreed.

The project eliminates the salary cap promoted by Sergio Massa from 2021 and current in the law that the Milei government wants to eliminate. Return to the previous pattern.

“These amounts are approximate because they may vary depending on the deductions that can be calculated. each worker in a dependent relationship. By returning to the traditional tax scheme, computable deductions are restored (rent, household staff, school expenses, etc.)”, explained Gabriela Russo, head of the Professional Council of Economic Sciences.

Furthermore, “the bill sent to Congress “increases the billing levels of the single-payer categories and the monthly fees to be paid”according to tax expert Marcelo Rodríguez, of MR Consultores, who added that “a monthly update of the parameters of the categories and the rates to be paid is expected”.

Russo clarified that “as regards the bonus, the exemption for gross wages not exceeding $1,250,000. This amount will be subject to six-monthly updating by CPI.”

It also remains the 40% deduction on the taxable base of the tax on sums received as productivity bonuses, lost earnings, or similar. This benefit is exclusive to gross wages not exceeding $2,500,000 gross per month.

In Earnings, in relation to the current income in your pocket, it represents, on average, a 25% reduction in net salaryor, apart from deterioration due to higher inflation. The higher the income, proportionately, the greater the drop in living wages would be: these changes hurt $800,000 of workers who are currently exempt and another 100,000 who will pay more.

This is because the Profits chapter of the government’s tax bill cancels law 27,525 passed by Congress, which exempts workers who currently earn less than $2,340,000 gross (15 SMVM) from paying taxes and a lower withholding tax for those who earn more . It was an initiative by former minister Sergio Massa Y which had the positive vote of Javier Milei.

SN