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The Government seeks to reestablish the tax with some modifications

The Government seeks to reestablish the tax with some modifications

The Government wants to collect the Income Tax again and seeks to respect progressivity through changes in the method of application of the tax.

The tax and fiscal project that the Government will send to Congress and the Governors as an annex to the Base Law has a chapter dedicated especially to Profits. The text maintains that “its purpose is to reestablish balance within the scheme of the Income Tax Lawincorporating into the income tax those subjects who demonstrate sufficient contributory capacity to be covered by the tax.”

The norm maintains that the objective of the measure is respect progressiveness, which, as they point out “is the guiding principle of said standard.” And, along these lines, it is proposed to modify the Income Tax Law to achieve, “through progressive rates”, a tax burden that will allow the State to rebuild the income lost due to the fiscal policy adopted prior to December 2023.

However, they clarify that they will not leave aside the governing elements of the tax in question, which are:

  • the assessment of contributory capacity of each individual taxpayer,
  • the income tax progressivity so that, the greater the economic result of a taxpayer, the greater their contribution.

Likewise, it is indicated that “the current design of the proposed rule is intended to avoid situations in which there is a disincentive to increase the result of economic activity for fear of suffering an additional tax burden that nullifies said greater income.”

To this end, they maintain that under the proposed rules “there will be no cases in which a taxpayer who increases his income sees said increase completely nullified by the tax”, thanks to the application of a percentage-wise higher taxation exclusively on the increase in income.

Note in progress.-

Source: Ambito

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