The Government made the modification of the Income tax official. The new non-paying floor will be in effect from October. What will happen to the bonus?
The Government made official the modification of the Income Tax, so that from October it will be paid by people with salaries greater than 1.7 million and clarified how the second installment of the bonus should be settled..
Through decree 473/2023, published this Wednesday in the Official Gazette, the Executive Branch clarified that the decision will come into effect tomorrow and will be applicable to remunerations and/or salaries that accrue as of October 1, 2023. inclusive.
Income Tax: when does the new non-taxable minimum come into effect?
Thus, as announced by the Minister of Economy, Sergio Massa, Starting next October, the new Income Tax floor will increase to $1,770,000 per month.
“It is established, for the second semester of the fiscal period 2023, that the amount of the remuneration and/or gross assets, for the purposes of the provisions of subsection z) of article 26 of the Income Tax Law, will amount to a monthly sum equivalent – according to the amount in force on October 1, 2023 – to 15 minimum, vital and mobile salaries”, according to the official text.
How will the changes in the Income Tax impact the bonus?
Refering to second installment of the bonuswhich must be paid in December, the decree provides that the amount arising from those 15 minimum salaries and the average of the second calendar semester of the remuneration and/or gross earnings must be considered.
On the other hand, the AFIP was entrusted to increase the amounts of the progressive scale of the tax, with effects for the period from the entry into force of this decree and up to the amounts received as of December 31, 2023, inclusive.
This was decided “in order to reduce the amount of withholdings of the subjects who obtain the aforementioned income and that exceed the amount provided for in the decree, with the objective of ensuring the progressivity of the tax, thus preventing their burden from neutralizing the salary policy adopted,” explained the Casa Rosada.
The decree indicated that a bill will be submitted to Congress for consideration “in line with the provisions of this measure in order to establish the tax policies promoted here with the hierarchy of law.”
The Executive Branch justified this tax modification by pointing out that “in all these years work has been done to develop measures that tend to ensure the progressivity of this tax, thus preventing its burden from neutralizing the adopted salary policy.”
Source: Ambito
