As reported by the Palacio de Hacienda in a statement, the measure will benefit more than half a million workers throughout the country.
The draft decree that increases the exemption of subparagraph z of article 26 of the Income Tax Law implies that the complementary annual salaries will be exempt from Earnings if the worker’s monthly remuneration does not exceed $880,000 gross, which is equivalent to 10 times the Minimum Vital and Mobile Wage.
This is a one-time extraordinary benefit for workers who pay income tax, with the aim of rebuilding their purchasing power and projecting that this improvement in pocket wages translates into greater consumption and economic activity.
Bonus: How many workers will not pay Income Tax?
The measure benefits 513,000 workers throughout the country who are subject to Earnings withholding and register monthly gross wages of between $506,230 and $880,000.
In this sense, more than 50% of the workers who today pay the tax are reached by the benefit.
The measure ordered by Massa implies an average pocket improvement per employee that exceeds $110,000 ($112,600), and an increase over the average monthly pocket salary of 26%.
In the case of the bonus, the tax withholding is calculated month by month.
For this reason, the measure proposes to return what was withheld for these salaries in two equal and consecutive monthly installments, along with the collection of monthly salaries earned in June and July.
For this, employers must display the return in a separate line of the salary receipt, clearly identifying the benefit of the measure.
Christmas bonus: Tax relief for workers, sector by sector:
The tax relief defined by Massa will reach:
- 92,640 workers in the manufacturing industry
- 72,598 of teaching
- 56,059 of financial intermediation and insurance services
- 43,570 of transport and storage services
- 41,633 information and communications
- 33,682 human health and social services
- 29,110 of wholesale and retail trade and repair of motor vehicles
- 28,501 exploration of mines and quarries
- 19,669 from construction
- 18,161 of association services and personal services
- 16,923 of electricity, gas, steam and air conditioning supplies
- 14,582 police and security forces
- 13,770 of professional, scientific and technical services
- 12,552 of administrative activities and support services
- 8,376 for water supplies, sewers, waste management and material recovery
- 4,515 from agriculture, livestock, hunting, forestry and fishing
- 3,092 of artistic, cultural, sports and leisure services
- 2,236 accommodation and food services
- 1,013 real estate services
- 318 services of organizations and extraterritorial bodies.
Source: Ambito
