He National government announced that the new income tax floor will exceed the $2 million due to a rise in Minimum, Vital and Mobile Wage (SMVM) and, in this way, the figure that determines who will not pay the tax will increase.
This week the elevation of the non-taxable minimum of the Income Tax by which they will stop paying all those salaries that are below the $1.7 million grossequivalent to 15 minimum wages.
However, the increase in the number of Minimum, Vital and Mobile Wage (SMVM) extended the floor to $2 million, according to the official confirmation confirmed by the AFIP in it Official bulletin from this Saturday:
“The National Executive Branch increased to a sum equivalent to FIFTEEN (15) MINIMUM, VITAL AND MOBILE WAGES (SMVM) -according to the amount that is in force on October 1, 2023-, the amount of the remuneration and/or monthly gross income.
Furthermore, article 1 of resolution 5417/2023 establishes the return of sums withheld during the month of September: “In the event that during the months that have elapsed in the second half of 2023, the average value of the remuneration has not exceeded the sum equivalent to 15 minimum wages – in force as of October 1, 2023 -, the refund of the withheld sums must be made on account of the second installment of the complementary annual salary, together with the remuneration and/or wages accrued corresponding to the month of September 2023“.
Modification in the Earnings floor: what are the reasons
At the time of the announcement about the Income Tax exemption, the national government took the current value of the minimum wage in Argentina which is $118,000 according to the September update.
The Earnings Exemption will inevitably be modified due to the monthly salary increase that is being generated month by month in the second half of 2023: the first increase was in July, in which it increased by 20% and the value of the salary amounted to $105,500. The second phase of the increase was in August, when it rose 8% and reached a salary of $112,500.
Finally, in September it was the turn of the third section, with an increase of 6%. In this case, the salary reached $118,000.
Now him Minimum Wage Council must decide the new number after a meeting scheduled for September 27. The final profit exemption figure will be tied to the decision of the body chaired by the Minister of Labor Raquel “Kelly” Olmos: for example, in a hypothetical scenario of a 15% salary increase, the Profit floor will go from $1,770,000 to $2,035,500.
Source: Ambito
