2024-03-15 10:28:36
The impact of the Income Tax reform that the Government presented in a draft to the provinces will be categorical. Not only because it annuls the law voted last November, and which places the “floor” to be reached at 15 minimum wages, but because it provides for the end of a series of deductions and exemptions that, if approved, will make 1, 5 million workers must pay the tax.
Although the proposed non-taxable minimum is $1,250,000 of gross salary, the same as what they had presented in January, the removal of deductions and exemptions means that a single person without children must pay if he has an income of $1,141,066 gross, while it will be $1,509,465, for that worker who is married with two children.
Read also: Retirements, Profits and Monotax: the key changes that Milei seeks to agree with the provinces
It is assumed that it will generate a strong controversy in many unions that had benefited from the recent reforms, including Truckers, Bankers and other large unions. For this reason, there is expectation in the next few hours regarding a strong response from the CGT, and, perhaps, the announcement of the second national strike.
In the new fiscal package that the Government released, it seeks to return to the system that was in effect prior to the project promoted by Sergio Massa in 2023, which would have a full impact on the middle class and would have great resistance among the governors.
Income Tax: what deductions does the new Milei Earnings project want to eliminate?
The initiative to collect profits once more from the fourth category, rejected by many governors, is broader than the version that the Government itself had sent to Congress, and then withdrawn, in January.
Because, in addition, a “lower” floor, which implies that more workers will pay the tax, removes special deductions and exemptions that had been included in recent times, among them:
- Aguinaldo;
- Extra hours;
- Mandatory health personnel guards;
- Travel expenses;
- Mobility expenses.
On the other hand, it would eliminate the provision that establishes that the Profit rate does not change due to taxed overtime, indicated Sebastián Domínguez, CEO of SDC Consultores Tributarios.
Income Tax: how the non-taxable minimum and the scales will be updated
According to the official project, the amounts will be adjusted quarterly in January, April, July and October of each year due to the annual variation of the INDEC Consumer Price Index (CPI). It will be done from the fourth month of 2024.
The update corresponding to January will be carried out considering the CPI variation for the period October to December of the year prior to the adjustment, while the April update will be carried out based on inflation from January to March of the fiscal year that is being settled,” the text indicated. .
Meanwhile, the July update will be based on the CPI from April to June of the fiscal year that is being settled, and the October update will be calculated by the inflation from July to September of the fiscal year that is being settled.
1710513602
#Income #Tax #salaries #paid #Government #project #advances
