They make the raise official and clarify what is going to happen with the bonus

“Entrust yourself to the Federal Public Revenue Administration (AFIP)autonomous entity in the field of Ministry of Economyto increase the amounts of the progressive scale of the first paragraph of article 94 of the Income Tax Law, text ordered in 2019 and its modifications – with effects for the period from the entry into validity of this decree and up to the amounts received as of December 31, 2023, inclusive-, for the purposes of reducing the amount of the withholdings of the subjects who obtain the income mentioned in sections a), b) and c) of article 82,” the decree added.

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Earnings: when does the measure come into effect?

Finally, he warns that extent will come into effect from now, which was published in the Official bulletin and will take into account the remuneratesy/or assets from October 1st. “This measure will come into effect the day following its publication in the Official Gazette and will be applicable to remunerations and/or salaries that accrue from October 1, 2023, inclusive, with the exception of the provisions of article 1, which will take effect in accordance with what is provided therein.”

Earnings: what are the changes, one by one

• They will stop paying the Income Tax (fourth category) workers in a dependency relationship and retirees.
• Only the highest incomes greater than fifteen (15) monthly Minimum Living and Mobile Salaries (SMVM) will be paid: CEOs, managers, assistant managers, qualified positions and retirements and privilege pensions.
• According to official sources, police officers, teachers, doctors and retirees would be exempt from the tax.
• According to him Minimum Vital and Mobile Wage in force today, 118,000 pesos per month, that figure would be $1,770,000. Only those who earn a gross amount greater than that number will pay Profits.
• The increase of the non-taxable minimum It will be done by decree and will take effect from October.
• According to official figures, 90,000 taxpayers will pay “Higher income”. It represents less than 1% (0.88%) of the total registered jobs in the country.
• He new non-taxable minimum of 15 monthly SMVM will be adjusted in January and July of each year.
• The benefit of the 22% unfavorable zone is maintained.
• HE eliminate distortions of personal and general deductions that force the worker to be aware of administrative issues. Less operational burden for employers – simplified system – which will result in a reduction in the cost of compliance with tax obligations.
• It creates a simplified regimen schedule within the Income tax called “Higher income”.
• As the tax is annual, “Increased income” will come into effect from January 2024. “The State makes an effort to stop collecting nearly $1 billion a year, which goes directly to the consumption and improves the purchasing power of workers and retirees,” official sources highlighted.
• Considering the projection of the salary increases Of the remainder of the year, as of December 2023, the amount withheld in the tax will be 890,000. “With our ‘Higher Income’ proposal: 800,000 taxpayers will stop paying Income Tax,” they highlighted from the Treasury Palace.