The measure addresses the need to guarantee the progressivity of the tax and prevent its burden from negatively affecting salary policy.
Since this month there is an important relief in the pocket for workers: thanks to the rise of non-taxable minimum Those with a gross salary greater than $1,980,000 will be taxed.
The measure addresses the need for guarantee the progressivity of the tax and prevent its burden from negatively affecting salary policy.
It is expected that the tax falls, only, on the highest income derived from personal work carried out in a dependency relationship and in privileged retirements and pensions.
In this way, the Bill which has already been approved in Congress established that higher income will be considered the equivalent of 15 monthly minimum, vital and mobile salaries, which are currently equivalent to $1,980.00 due to the latest SMVM update at the end of September.
These will be the only ones that remain taxed, with a schedule tax whose progressive scale will have rates that range between 27% and 35%.
The main changes introduced by the law are the following:
- A new chapter is created in the law, Chapter III, which establishes a schedule tax on the highest income from work in a dependency relationship, retirements and privilege pensions and others.
- The highest income, for the purposes of this chapter, is those included in sections a), b) and c) of article 82 of the Income Tax Law, with some exceptions.
- Taxpayers who earn higher incomes will have the right to deduct, onlyas a non-taxable minimum, the sum equivalent to one hundred and eighty (180) annual Minimum, Living and Mobile Wages (SMVM).
- The rate of schedular tax will be progressive, with a maximum rate of 35%.
- The fourth and fifth paragraphs of subsection c) of the first paragraph of article 30 of the Income Tax Law, which established a reduction in the income tax for workers in a dependency relationship who received up to a certain amount, are repealed.
The law will come into force on the day of its publication in the Official Gazette and will be applicable from fiscal year 2024 and following.
Specifically, the most significant changes are the following:
- The creation of a new schedular tax on the highest incomes: This tax will be applied to the income of workers in a dependency relationship, retirees and pensioners that exceed a certain amount. The tax rate will be progressive, with a maximum rate of 35%.
- Elimination of the reduction in income tax for employees in a dependency relationship: This reduction applied to employees in a dependency relationship who received up to a certain amount. lThe elimination of this reduction implies that dependent workers with higher incomes will pay more taxes.
Source: Ambito
