For the new income tax floor, no tax withholding will apply when the gross remuneration does not exceed $506,230, inclusive. Likewise, in those months in which the gross salary for the month exceeds $506,230 and is less than or equal to $583,851, withholding agents will compute an increased special deduction.
Profits: the Government formalizes a new floor
The proposed amendment will allow a reduction in the total number of workers who pay income tax. Through the measure, approximately 250,000 employees in a dependency relationship will benefit.
In addition, this change contemplates the variation of the Average Taxable Remuneration of Stable Workers (RIPTE) between the months of October 2022 and February 2023 (latest data published) which was 25.29%.
These provisions will be applicable to remunerations and/or gross monthly salaries accrued as of May 1, 2023, inclusive, with the exception of the provisions of article 1, which will take effect as provided therein.
Since January 2023, the monthly gross remunerations that do not exceed $404,062, inclusive, did not pay income tax.
Earnings 2023: amount of the exempt Christmas bonus
In the event that the average salary and/or monthly gross salary for 2023 will exceed $506,230it is speculated and confirmed then that the bonus will be fully affected for income tax.
If the average salary did not exceed $506,230then the bonus as such will be exempt up to the sum of $253,115 (which is half of $506,230).
The new income tax floor will come into effect from May 2023 and, according to what was explained by the Ministry of Economy, the payment of the supplement It is linked to the variation of the Average Taxable Remuneration of Stable Workers (RIPTE) of 25.29%between October 2022 and February 2023.
Regarding the scales, will not be changed or updated the amounts of deductions from Income Tax in May.
Source: Ambito
