The income tax rate will be adjusted in July for wages and inflation

Due to inequality and high inflation, the lowest floor to be paid Earnings will be reorganized from July taking into account the variability of wages and prices. That would be the standard for updating the current $ 225,937 gross amount from which dependent workers and retirees are taxed, as confirmed official source on Clarion.

“The ceiling where Revenues are paid based on inflation and the evolution of wages will be updated, now we have a good portion of the parity closed, when we use projections we will update the tax using both inflation and wages“, they pointed out from a government office.

Although the Ministry of Economy has not yet determined the new Revenues limit, the idea is that it will happen in the coming weeks and will take effect from July, after the Budget amendment, with approval by decree already in place. schedule before the end of June. The new thing is the inclusion of inflationwhen consultants predicted 70% in 2022.

After a record in April, which reached 6% month-on-month and 58% year-on-year, IPC accumulated 23% in four months. Meanwhile, wages rose 12% to March, according to the index of average wages subject to contributions (RIPTE). If an average of both indices were used through April, the payout could rise 20% to $ 271,124 gross.

Doon, Economic criteria are different from those proposed by the head of the House of Deputies, Sergio Massawho more than a week ago requested in a letter to the Minister of the Economy, Martín Guzmán, to advance by six months the increase plan for January of next year in effect of the parity advance and the acceleration of inflation.

To Deputies they asked to raise the floor by at least 17% to $ 265,000 with the goal that only 10% of the highest -income employees pay taxes.

The calculation took into account the actual number of workers who would have retentions if there were no changes in Earnings. That number rose 15% in two months, from 740,000 in February to 850,000 in April.

Such a system is similar to the one used last year, when Congress by law increased the deductions for salaries to $ 150,000 so that they could not record net income and allow the Executive to do so again by decree. So, in September after losing the elections, the Government raised this amount to $ 175,000.

In his letter, Massa explained that the “progressive tax relief scheme” It allowed in 2021 that 1.5 million workers stopped paying Revenues: approximately, in 2020 it reached 2.3 million employees and last year they became 800,000. But in recent months it has started to fade with time through wage renegotiation and price increases.

The other mechanism implemented once a year is RIPTE’s automatic diversification, which decided to adjust by 50.5% last year and brought the floor to the current $ 225,937 in January for fiscal year 2022. Nowregardless of automatic update or growth rate of remaining workers, prepare a new calculation mode.

Bonus

Coincidentally in December, with the approval of the Personal Property Law, Congress has again empowered the Executive to increase this year’s Revenues deductions, but no criteria have been specified. For this reason, the Executive has the margin to define in a discretionary manner the ceiling of tribute payers.

If the adjustment takes place in July, the Income adjustment, the current floor will rule for the bonus will be paid in June. Perhaps that’s why the decision was made to kick off the update until July.