The Minister of Economy, Sergio Massa, will send to Congress a bill so that workers stop paying income tax who earn up to one million pesos, and retirees, with the exception of those with privileges, starting next year. In this note, the detail of the measurement.
Gains: who will be reached?
Only the directors of corporations, CEOs, managers and assistant managers and privilege pensions that will involve a very minor percentage of the total number of employees in a dependency relationship in the entire country.
Profits: how much will the minimum floor rise?
A will be implemented rise above the minimum floor With more than $1,000,000 in profits, this is an increase of 40%, to reduce the impact of the post-STEP peso devaluation that is driving prices by more than 20% in the two months of August and September.
Earnings: how much would purchasing power improve?
According to the projections made by the Government, the net income pocket between 21% and 27%. Currently, the minimum floor to be exempt is $700,870.
Profits: why was this decision made?
If we take as a basis the wages August, and according to the numbers they manage in the Treasury Palace, the number of workers and retirees who pay the tax is 701,928 (that is, 7% of the total number of workers in a dependency relationship). If that floor was not modified, according to official projections, the number of those detained would increase to 890,000 in December.
Profits: what will the impact be on your pocket?
For a net pocket salary of $667,998.69, the planned improvement would be $117,690.32 (+21.4%); for one of $717,998.69 it would be $135,190.32 (+23.2%); for one of $767,998.69, it would be $152,690.32 (+24.8%); for one of $817,998.69 it would be $170,190.32 (+26.3%); for one of $867,998.69 it would be $187,690.32 (+27.6%).
They are variations that resemble the inflation of the period, so they would rather be updates with the objective of not including more workers in the payment of the tax due to the strong acceleration of inflation and the parity.
Profits: which sectors benefit the most?
According to the projections of the Ministry of Economythe percentage of employees most benefited by the measure, according to the sectors in which they work, would be:
- Industry (19.13%)
- Defense, security, education and public administration (14.5%)
- Financial intermediation and insurance services (11.94%)
- Service provision (8.10%)
- Communications (7.84%)
- Transportation and storage services (7.71%)
- Private education (6.33%)
- Wholesale and retail businesses (5.82%)
- Exploitation of mines and quarries (5.82%)
- Supply of electricity, gas, water and sewage (5.06%)
- Construction (3.11%)
- Human health and social services (2.91%)
- Accommodation services and food services (0.90%)
- Agriculture, livestock, forestry and fishing (0.65%)
- Rest of activities (0.20%).
Profits: how will this modification be paid?
With the minimum floor At $700,870, a gross salary of $800,000 pays Earnings $117,690; one of $850,000 must face $135,190; another of $900,000 pays $152,690; one of $950,000 pays $170,190 and a gross salary of $1,000,000 has to pay $187,690 in income tax, according to official data.
Earnings: when will it be implemented?
The proposal to stop paying the income tax fourth category, workers and retirees, requires a law, since in addition to being a tax matter it is an i“annual” fiscal year tax. It should take effect from January 1, 2024.
However, a “bridge” scheme with similar benefits starting with the October salaries of this year.
Source: Ambito
