What will happen to the Christmas bonus and the Income Tax?

The key to the announcement is the exceptions contemplated by the collecting body to enforce this measure, which was taken just ten days after the end of the month and at a time when some companies could have closed the settlement in September.

For these cases, the AFIP stressed that “when an employer had made the liquidation of the assets accrued in September prior to the enactment of the regulations, the return of the balance in favor of the worker must be made in the first payment that be done ”.

In this way, those who receive a gross monthly remuneration of up to 175,000 will not be affected by the discounts. It is estimated that around 1.2 million workers will benefit.

What about the payment of the Christmas bonus

The measure also excludes from this obligation those whose income exceeds that figure at the time of payment of the half bonus that will be collected at the end of the year. Workers whose average monthly remuneration for the second semester does not exceed 175 thousand pesos is “exempted from the payment of the Supplementary Annual Salary,” the agency specified.

In addition, “the regulation also contemplates that people who receive between 175 thousand and 203 thousand gross pesos face a lower tax burden.” The objective of this is not only to underpin “the recovery of the purchasing power of wages” but also to “strengthen the economic recovery process,” said the head of the AFIP, Mercedes Marcó del Pont.

The new increase in the Income Tax indicates that it is imposed “does not neutralize the benefits derived from the economic and salary policy assumed by the Government in order to give sustainability to the purchasing power of salaries and strengthen domestic demand.”