The Minister of Economy, Luis Caputo, announced that they will seek to reverse the tax reform promoted by Sergio Massa that was approved by Congress in October.
In his first week at the helm of Ministry of Economy, Luis Caputo announced that it seeks to send to Congress a review of the latest reform of the Yoincome taxdriven Sergio Massa prior to the general elections and which was approved by both Houses.
This last modification had exempted around 800 thousand taxpayers from the tax since the apartment had become 15 minimum wages. The measure was approved with 38 votes in favor and 27 against in the Senate and had previously passed through the Chamber of Deputies, where he had obtained 135 favorable votes, including that of president Javier Milei.
However, this measure implied a loss of $1 billion for the National State and the same for the provinces, since it is a co-participatory tax. This is why since Government decided to go back with the reform promoted by Sergio Massa, with the aim of getting out of the fiscal deficit as quickly as possible. Furthermore, the decision came from a strong claim from the provinces for the loss of funds caused by the tax change.
Income Tax: what will be the new floor
As planned, the reform of the law would include previous versions of the law of many clauses on deductions and benefitsand one reduction by 2024for the only time, 26% of the amounts for the application of the current scale.
The changes that will be introduced in the non-taxable minimum and the special deduction, the income tax floor Profits will drop from $1.98 million to $974,515according to calculations of the tax advisor Ariel Bassanetti.
One by one: all the articles of the Profit project
- Article 1 and 7: they repeal the law that established a floor of 15 vital and mobile minimum wages and changed the nature of Income Tax by converting it into a scheduled tax (without deductions) to the High income.
- Article 2 to 4: reestablish the rules of the Income Tax Law prior to repeal last December regarding how to deal with fixed deadlines, cryptocurrencies and other investmentsas well as derivative contracts.
- Article 5 and 8: end the system of special deductions to set the minimum Income Tax, as was done during the administration of Sergio Massa, and also rolls back the exemption in the bonus. In this way, the new Income Tax floor of 2024, for workers in a dependency relationship and retirees, will arise from the sum of the non-taxable minimum (it will be $90,780.71 in January), plus the sum of 3.8 times that same figure.
- Articles 6 and 10: they establish the table of rates for human persons in the same one that is in force and affirms that, Starting in 2024, it will be updated by RIPTE, from October to October. For the only time, for fiscal year 2024, at the amounts provided in the scale 26% must be deductedprior to the application of the corresponding Income Tax rate.
- Articles 11 and 12: by 2023, the dependent workers and retirees They will be governed by the regulations in force at the initiative of the former minister Massa.
- Article 13: empowers the Executive power to raise the floors of the progressive scale of the Income Tax and deductions.
- Article 14: the validity of the rule will be from the publication in the Official Gazette.
Source: Ambito
