Earnings variation: what would the tax for self-employed workers look like vs. employees with the highest earnings

If the changes to the income tax for self-employed taxpayers are approved, the gap will narrow between what you have to pay an employee in relation to addiction e A professional Independent.

This is because the project entered the Chamber of Deputies increases the non-taxable minimum (MNI) for self-employed workerswhile holding without modifications the MNI for salaried / dependent employees who exceed the minimum wage of $ 280,792.

Thus, for example, a professional who has an income out of his own pocket of $ 400,000 per month or $ 4,800,000 per year (exceeds the maximum value of the Monotax category), as self-employed would pay out of earnings $ 1,129,089 per year or $ 94,090 per month.

With the same income, if employee in a relationship of dependence, by calculating the proportional bonus, it would pay $ 969,973 per year or $ 80,831 per month.

This is because the current non-taxable minimum of $ 252,564, the project increases the special allowance for self-employed from $ 505,129.66 to $ 757,694.52 per year, for a total of $ 1,010,258 per year. year. And the special deduction for “new professionals” has increased to 2.5 times (today it is 1.5 times), reduce the gap with the deduction of workers in an addictive relationship.

The numbers are from the tax expert Daniel Lejtman, who clarifies that “the bill increases the amount of the Special Deduction for Self-Employed Workers, in one more time than currently supportedwith which the amount of net profit subject to tax reductions in the sum of $ 252,565 per year, equivalent to $ 21,047 per month, which reduces the tax by $ 88,397 per year or $ 7,366 per month. “

In turn, “in addition to the general deductions that employees in a dependent relationship also have, Self-employed workers can deduct expenses related to their businessprovided that their connection with the obtaining of their taxable profits is demonstrated.

Lejtman adds that for some time AFIP has questioned the deduction of some expenses that could be considered “personal” and not so much related to professional activity, such as cars, clothing and others similar. “However, over time, the jurisprudence has ended up validating their deduction, at least proportionally,” he adds.

In that case, computer science as an example 15% of the expenses related to the activity to the same income, the tax would add $ 877,089 per year or $ 73,091 per month, reaching below what an employee would pay in a dependent relationship.

This leads to the effective rate of the tax calculated on income is, in many cases, lower for the self-employed worker than for the dependent employee he has a limited margin of deduction. In the case of self-employed persons with annual income between $ 5 and $ 6 million, the effective average rate is only 18.8%.

Tax expert Marcelo D. Rodríguez explains that “this benefit granted to self-employed workers will be applicable only at the time of drafting the deed of notoriety for the period 2022 which expires in June 2023 “.

However, Rodríguez clarifies that “in order for self-employed workers to benefit from a specific benefit during the current year, AFIP should change the minimums from which such taxpayers must anticipate the payment of the tax through the withholding made by their customers at the time of payment for their services. This way they can enjoy the benefit during the current year.

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