With the increase in the taxable minimum, only those with salaries exceeding $1.7 million or 15 Minimum, Living and Mobile Wages (SMVM) per month would pay it.
The Minister of Economy Sergio Massa announced this Monday the increase in the non-taxable minimum of the Income Tax and from October Only those with salaries that exceed the $1.7 million either 15 Minimum, Vital and Mobile Wages (SMVM) monthly.
Earnings: who is included?
Will be exempt employees of fourth category, that is, employees in a dependency relationship and retirees (800,000 workers).
Meanwhile, the CEOs, managers, assistant managers, qualified positions and retirements and privilege pensions, which is represented by 90,000 taxpayers, 0.88% of the country’s registered jobs.
Profits: can the non-taxable minimum remain fixed?
No. It was confirmed that in the next few hours a bill will be sent to Congress so that the non-taxable minimum remains fixed and with semiannual update, which would be done based on the evolution of the SMVM.
In this sense, the increase in the minimum limit will become effective starting in October, through a decree.
Earnings: what are the four categories
He Income Tax it’s divided in four categorieswhich correspond to the different ways of calculate the tax according to sources of profits:
- First category: corresponds to land rents, that is, to the profits generated by the usufruct of urban and rural properties.
- Second category: corresponds to capital income, which implies all income obtained from shares, interests, dividends, etc.
- Third category: These are the benefits that companies and sole proprietorships earn.
- Fourth category: These are the profits obtained from personal work.
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Earnings: the detail of the measure, point by point
The proposal that simplifies the scheme for higher-income workers
- It is established a New Non-Taxable Minimum of 15 SMVM monthly that will be adjusted in January and July of each year.
- It keeps the benefit of 22% unfavorable zone.
- HE eliminate distortions of personal and general deductions that force the worker to be aware of administrative issues.
- Less operational burden for employersthrough a simplified system, which will result in a reduction in the cost of compliance with tax obligations
Source: Ambito
