Workers in employment relationships who earn more than $1,141,066 net monthlyin the case of singles without children, and more $1,509,465 out of pocket, those married with a dependent spouse with 2 children They will pay income tax if the new bill that the government is sending to Congress is approved.
These calculations are by Fernando López Chiesa, of Estudio Lisicki, Litvin y Asociados, who clarifies that all payments received by workers, such as overtime, bonuses, long-distance travel expenses (truck drivers), Patagonia area, are included in calculating taxes. . And the non-taxable minimum and tax scales will be updated every 3 months by the price index (inflation) in January, April, July and October of each year.
The project eliminates the salary threshold promoted by Sergio Massa from 2021 and valid in $2,340,000 gross (15 Minimum, Living and Mobile Wages – SMVM) in the law that the Milei government wants to eliminate. Return to the previous pattern.
This means that 1.5 million workers today exempt from profits they would pay the tax again in rates varying from 5 to 35%.
In the recitals, the project states that “its purpose is rebuild tax revenues (from 2024) eliminated between August and December 2023, in particular with regard to the tax on the personal income of taxpayers with greater ability to pay”.
The project ratifies the tax breaks that Sergio Massa applied between September and December 2023.
In the case of self-employed workers, the non-taxable minimum is lower: 885,310 dollars – single without children – and 1,253,709 dollars – married with 2 children.
A novelty of the project – article n. 98 – is this incorporates as part of the tax base all compensation received by workers in a relationship of employment will be included in the tax and no exemptions or reductions established by other regulations will be applied in the calculation of the tax, with the sole exception of law 26.176 applicable to oil workers.
“The various notions that under the name of benefits (social or otherwise) and/or fuel vouchers or for any other notion, extension or authorization of use of purchase and/or credit cards, accommodation, recreational or rest, payment of educational expenses of the family group or other similar concepts, granted by the employer or through a third party in favor of his employees or dependents, are covered by this tax, even when they do not have a remunerative nature for the purposes of contributions and contributions the Argentine Integrated Pension System (SIPA) or similar provincial or municipal schemes”, specifies article 98 of the project. .
This means, as he commented ClarionGabriela Russo, president of the Professional Council of Economic Sciences, which leaves without effect, among others, the following exemptions and deductions:
• Exemption from productivity bonus, cash failure or similar concepts (up to 40% of the non-taxable minimum)
• The exemption from special supplements for military personnel is cancelled
• The exemption from the supplementary annual salary (bonus) is no longer applicable.
• Exemption of on-call fees for healthcare personnel
• No type of exemption or deduction established by law will be applicable, with the exception of oil workers – well personnel – (Law 26176)
• Withholdings for mobility, travel and other similar expenses are void.
• Differential treatment for taxed overtime is eliminated.
The project repeals the 22% increase in deductions for workers and pensioners residing in the Patagonia area. This affects workers and pensioners in the province of La Pampa, Río Negro, Chubut, Neuquén, Santa Cruz, Tierra del Fuego, Antarctica and the South Atlantic Islands and the Patagones district of the province of Buenos Aires.
On the other hand, other deductions are provided as a limited percentage of the tax base, such as mortgage interest, life insurance, prepaid medicines, medical expenses, private household staff, among others.
For example, according to Lopez Chiesa, a single worker without children, with a gross salary of $1,800,000 – now exempt from income – will have $79,047 monthly withheld. And with a gross salary of $2,340,000 (also today exempt from Earnings), you’ll pay $242,857. And for those who are married with 2 children, $12,769 and $134,817 per month will be withheld respectively.
Furthermore, the bill sent to Congress increases the billing levels of the Single-Fee categories and the monthly installments to be paid.
Source: Clarin
