Workers in a dependent relationship who They earn more than $1,800,000 gross per month (i.e. approximately 1,500,000 dollars net) in the case of those who have no minor children, or more than 2,200,000 gross dollars (1,950,000 dollars net) with 2 children will pay income tax if it is approved as shown in the bill with fiscal measures that the Government sent to governors and deputies on Tuesday.
These calculations are by Fernando López Chiesa, of Studio Lisicki, Litvin y Asociados, who clarifies it all payments received from workerssuch as overtime, bonuses, long-distance daily allowance (truck drivers), Patagonia area, are included in the tax calculation.
And the non-taxable minimum and tax scales during 2024 will be updated “at the discretion of the Executive. From 2025 will be updated annually from the consumer price index (CPI)”.
In previous versions of this project, a quarterly adjustment was foreseen due to the change in the CPI, i.e. inflation.
In turn, these new values will be applied when the project is approved, not retroactively.
The project eliminates the minimum ceiling promoted by Sergio Massa AND currently in force of $2,340,000 gross (15 Minimum, Living and Mobile Wages – SMVM) in the law that the Milei government intends to replace. We will then return to the previous scheme.
This means that About 800,000 workers currently exempt from profits would pay the tax again in rates varying from 5 to 35%. In values starting from almost $3,000 per month up to approximately $60,000 per month for those who are exempt today. And that exceeds $100,000 per month for those earning more than $2,500,000 gross.
The project ratifies the tax relief applied from 1 October to 31 December 2023 (Decree no. 473/2023), which means that There will be no retroactive withholdings.
To prevent what was paid for profits this year until the law is passed, “the project provides a special deduction so that employees do not have to pay more than they paid from January 1st to the last day of the month. immediately before the reform came into force,” clarified specialist Sebastián Domínguez.
In the case of self employed The non-taxable minimum is lower: 1,159,138 dollars net for singles without children and 1,644,327 dollars net for married people with 2 children.
For the pensioners and pensioners the exemption is maintained Earnings in 8 minimum assets which, in April, amounted to $1,370,266.
All payments received will pay profits
A novelty of the project is that it incorporates the tax as part of the tax base all payments received from workers in an employment relationship (if paid by the employer or third parties) e No exemptions or reductions will be applied to calculate the tax. established by other regulations, with the sole exception of law 26.176 applicable to oil workers.
“The various notions that under the denomination of benefits (social or of another nature) and/or fuel vouchers or for any other notion, extension or authorization of use of purchase and/or credit cards, accommodation, recreational travel or rest, payment of family group education expenses or other similar concepts, granted by the employer or through third parties in favor of his dependent family members or employees, are achieved for this fee, even when they are not remunerative for the purposes of contributions and contributions to the Argentine Integrated Pension System (SIPA) or similar provincial or municipal schemes,” the project specifies.
There will be no more exemptions
Among others, the following exemptions and deductions are void:
- The exemption from business bonus, Cash bankruptcy or similar concepts (up to 40% of the non-taxable minimum)
- The exemption of special supplements for the military personnel.
- The obligation to add one twelfth of the compensation is eliminated, a situation which currently generates the advancement of the withholding corresponding to the future bonuses“, clarifies Sebastián Domínguez.
- Exemption from pay for on-call and overtime work performed by professionals, technicians, assistants and operational staff of health systems
- No type of exemption or deduction established by law will be applicable, except for oil workers – well personnel – (Law 26176)
- The deduction for mobility expenses, travel expenses and other similar compensation.
- Differential treatment is eliminated extraordinary taxed.
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.
Due to the application of caps on mandatory discounts – pension, health -, a single employee will not pay income tax if his gross remuneration is up to $1,744,175 and net of $1,494,000 and a married employee with 2 children, you are exempt if your gross income salary is up to $2,231,452 and net compensation is up to $1,981,277, Domínguez says.
Source: Clarin
