Monotax: maximum billing amount of various categories will increase by 29.1%

After the salary increase “floor” of Earnings at $ 280,792 for workers in a dependency relationship, this is the turn for Monotributists. The head of the Chamber of Deputies, Sergio Massa, is advocating a bill that will increase from July 1 29.1% are the amounts or maximum billing amounts of the various categories of Monotax so they don’t get caught up in the face of inflation, keeping monthly installation costs unchanged.

Massa assures that the subject talked about with President Alberto Fernández on Friday when they met with Minister Martín Guzmán and union leaders to set the salary increase on the “floor” of Earnings for workers in a dependency relationship.

The proposal, if completed, will benefit more than 4 million of Monotributistas that in July, due to the highest inflation of the semester, should re -categorization towards a higher level, increasing the amount of compensation. And in the case of those in the highest category, the higher nominal charge may lead to their abandonment of this Simplified Regime and switch to the General Regime, which is more expensive.

Massa ensures that in the coming weeks there will be changes on the same line for the self-employed which has been left by the presence of a Minimum Non-Taxable (MNI) lower than retired and dependent workers.

Currently, Monotax law requires updating billing amounts once per year, in January, according to the mobility formula variation. And in January and July, it is appropriate to re-categorize whether the Monotributist has invoiced less or more in relation to its category.

This year, pension increases were 12.28% in March, and 15% in June, accrued showing 29.1%.

Massa’s proposal, detailed with the deputy Leander Santororaises the following, as agreed Clarion;

* Advance on July 1 the adjustment for the maximum billing amount of the various Monotax categories according to the six monthly variations of social security mobility.

*The date corresponds to the Recategorization scheme applied by AFIP, which is done every 6 months, in January and July.

* In this way the fee remains the same (this avoids last year’s problem of retroactive billing) and only the billing limit of each category is “raised”.

* It has a positive impact on over 4 million monotributistas and the financial cost is zero.

* Easy to communicate and implement with AFIP systems.

* It is not advisable to move forward with a deeper regime change this year as this will be the second Monotax proposal (the famous “bridge” method and retroactive collection) from 2020 to the present, especially considering the implementation difficulties in AFIP systems verified last year.

Monotax categories are divided into two large groups: provision of services and sale of personal property (products) based on activities: whether it is conducted in a particular place or establishment, taking into account the area affected, the total annual electrical energy consumed in kilowatts and, eventually, the annual amount to be paid for rent.

The amount of the Monotax quota depends on the category, and consists of one tax component (the combined tax), the retirement contribution, (previsional component (SIPA)) and another for social work.

Workers in a dependency relationship and simultaneously Monotributistas should not pay a pension and part of social work because they already pay it as active dependents. Even retirees who contribute directly to PAMI.

The volume of Monotributistas – 65% of over 4 million – is listed in the lowest category (A and B). And another 20% falls into categories C and D.

For example, category A reaches those who invoiced up to $ 466,201.59 in the last 12 months with a monthly payment payment of $ 3,334.24 Those in category up to $ 693,002.36 in billing and a $ 3,728.29 monthly.

The highest category is H for “locations and provision of services” up to $ 3,276,011.15 and a monthly fee of $ 16,114.67. And for sales of furniture items, category K amounts to $ 4,662,015.87 in annual bills and $ 25,090.13 in monthly payments.

Tax attorney Marcelo D. Rodriguez points out that these changes “must be made based on a law approved by National Congress, before the six-month recategorization scheduled for July takes place.”