Inside of the project tax that the Government presented in Congress, where the reversal of Profits will be at the center of the debate, also included changes in the monotax regime. With increases of up to 745% in categoriesspecialists consulted by Ámbito define this universe as the “big winner” of the initiative, although They demand tax justice measures for the self-employed.
In Argentina there are almost 2.9 million independent workers. According to the latest data from the Ministry of Labor, independent employment as a whole expanded 11.3% (+294,500 workers). In the year-on-year comparison, it was driven by monotributistas (+39.7% social monotax and +6.6% monotax), while the number of contributors to the self-employed regime grew only 1.6%.
To the rhythm of the strong inflation and the deterioration of purchasing power, which only for dependent workers fell 13% in the first month of Javier Milei’s administration, monotributistas and self-employed workers urgently requested the updating of the categories. Thus, as the CEO of MR Consultores explains, Marcelo Rodriguezwith the parameter of January 1, 2023 and the current bill, the maximum amount by categories would increase by 400% for the lowest rank (the A) and 745% for the highest (the K). In turn, for those monotributistas who provide services, the increase in the highest category increased 520%.
The tax lawyer Diego Fraga understands that the table for monotributistas “turned out very well and “They are the big winners of the reform.” since “they are quite high amounts for the current economy.” If approved in Congress, category A would go to the limit of $5 millionB at $8 million, C at $11.5 million and D at $15.5 million.
The annual gross income limit to be in the regime would be $35 million for services and $68 million for the sale of personal items. In turn, the monthly amount to be paid would be updated, both the tax component and the retirement contributions and social work.. The total fee for category A, the lowest, would amount to $27,500 per month – currently at $12,128 – while for category H, the highest service, the total fee would be $179,597, now at $66,111. Meanwhile, for category K, the highest in the sales category, it would go to $409,418 per month, today at $106,964.
At the same time, Rodríguez points out that The non-taxable minimum for the self-employed would increase by 422% in the same period. The Executive’s initiative proposes that Earnings be paid from an average income of $688,575 per month (without any deduction) and from $871,984 per month (with family responsibilities, spouse and two children).
However, he considers that the registered responsible person regime continues to be “the place where self-employed workers and professionals are sheltered” since those who are in the maximum category of services, which could bill up to $35 million, would end up paying “nothing more than 5 % in terms of income”, while the self-employed “easily reach 35%”. In that sense, he warns that companies “will tend to try to hire personnel under this methodology” to alleviate the impact of the possible increase in Income Tax. “Those who are within the monotax from no point can imagine leaving, which is why it becomes complicated when there is some exclusion. “There continues to be an important inconsistency where there is a niche of tax benefits for monotributistas.”
Although Fraga explains that The system is currently maintained to cushion the transition to the autonomous regime, a “historical reason” is detected for tax discrimination between some and others: “Dependents have more restrictions on deductible expenses.” But the self-employed are also limited by AFIP, although they have “some greater flexibility” to deduct expenses. “It is not justified that the tax punishes them differently for the same contributory capacity,” the specialist understands.
In that sense, Sebastian Dominguez, from SDC Asesores Tributarios, recognizes that in the project the discounts -MNI, special deductions, spouse, children, etc.- also apply to this universe and the sections of the scales also seek to be updated. But What should be done, according to his view, is to increase the special deduction increased by 3.8 times, as applied to employees. “That is what has always been requested, equal treatment,” concludes the specialist.
Source: Ambito
