Meanwhile, next week the Minister of Economy would announce aid for informal workers that would consist of a fixed sum. It has not yet been defined what requirements will be established and what universe it would cover. It would be similar to the IFE but would not carry that name, according to what they say in the Treasury Palace.
The tax simplification and tax relief scheme designed by the Ministry of Economy for the self-employed contemplates that the current transition from the monotax to the registered responsible person regime “It is inequitable.”
It happens that the tax burden of a monotributista With a monthly income of $700,000, it is much lower than the fiscal cost of a registered responsible person who invoices $1.2 million per month.
Although, on average, the effective rate of Income Tax for the self-employed is 14% to 17%, with the new cedular scheme for workers and retirees that was introduced as a bill, and for which only 88 thousand will pay taxes with higher incomes that exceed 15 monthly minimum vital and mobile salaries (SMVM) (today $ 1,770,000), “Inequalities are increased for the self-employed”.
For this reason, the Treasury Palace designs a tax simplification scheme “SIMPLE” That would initially apply to human persons – professionals, service providers, merchants – who are currently self-employed but do not have a monthly income of more than 15 SMVM.
Official information indicates that 987,000 people are currently registered as self-employed.of which 286,000 (29%) are directors of public limited companies, 364,000 (37%) are merchants and 337,000 (34%) correspond to professionals and service providers.
The first group, i.e. The directors, pay the monthly self-employed social security fee, but their majority income is board fees or “bonuses” from companies, which have special treatment in both income tax and VAT. For these taxpayers No modification is being studied, since they are a group with high contributory capacity, as evaluated by the authorities.
For the self-employed merchants, professionals and those who provide servicesthe SIMPLE scheme will imply that those who have income of up to 15 SMVM per month (similar limit as that of employees who do not pay Higher Income) can opt for this simplified regime with the following characteristics:
– It will be a different regime than the monotax.
– A single monthly payment, covering social security, VAT and Profits.
– Payment will be determined as a percentage of billing.
It is intended as an intermediate scheme between monotributistas and higher-income professionals and merchants. This will allow them to avoid the “jump” that involves going from monotax to the general regime, according to official sources.
They also advance that During the week the bill that will be sent to Congress will be finalized.
However, and to provide an immediate response to the self-employed who are not those with the greatest contributory capacity, The following tax relief measures are planned: do not require law:
- Reduction of the income tax withholding percentage, which ranges from 5% to 31%, and increase in the minimums from which professional fees begin to be withheld.
- Deferral of VAT payment for the months of September to December 2023.
- Deferral of the payment of monthly contributions of self-employed workers for the months of September to December 2023.
- As in the case of micro businesses, the $60,000 bonus will be absorbed 100% by the State through employer charges.
The Ministry of Economy also evaluates extend the SIMPLE regime to micro and small businesses with up to 3 employeesaccording to official sources Ambit.
At the Unidos por la Patria campaign headquarters it is stated that “Peronism sees possibilities of winning and is organized behind Massa.”
In this regard, they comment on the “centrality” of Massa in the last 15 days, “with initiatives that dislodged to the opposition, and the polls that already put him second and entering a possible runoff with Milei, generated a current of optimism that promoted strong territorial work by the governors, mayors, unions and the different UP leaders with the campaign. “Peronism sees possibility and wants to win” summarized one of the governors.
Some of these measures are the removal of income tax and purchases without VAT for monotributistas, retirees and workers who do not pay Profits, a refund of 21% of the tax for purchases of food and personal hygiene products; the fixed sum for public and private sector workers; zero withholding for exports in favor of regional economies; the freezing of prices in fuel, medicines and automobiles and the reinforcements to the food card, a plan to strengthen.
The new Profit floor and the elimination of VAT affects the shareable resources of the provinces, however, many governors gave their support. And, the reason would not be merely political.
A job of Nadin Argañaraz could be the explanation, according to the economist “Until the end of the year, the provinces would benefit from the income tax reform and the “Buy without VAT” program
“Given that due to the profit reform the provinces and CABA would lose 0.06% of GDP between now and the end of the year, if the “Buy without VAT” system is fully applied, they would gain 0.04% of GDP, given that For the refund they would charge an extra 0.11% of GDP due to higher collections,” affirms the work of the IARAF consultancy.