Who has to pay and how the rates are with the sanction of the Government project

Who has to pay and how the rates are with the sanction of the Government project
Who has to pay and how the rates are with the sanction of the Government project

The original text of the tax package establishes that Profits be paid from an out-of-pocket salary of $1.4 million in the case of a single person without children. In Personal Assets, rates would be reduced and taxes would be allowed to be advanced until 2027.

The Chamber of Deputies finally approved the Bases law and the fiscal packageThe chapter that requires re-taxing salary income over $1,800,000 was approved with 136 votes in favor, 116 against and three abstentions (Roxana Reyes, Silvana Ginocchio and Mónica Frade).

Fiscal package approved with Senate changes discarded, Federal Public Revenue Administration (AFIP) will launch the mechanism for the liquidation of the Tax to Profits and Personal Assets, whose maturity is in August.

The opinion of the Budget and Finance Committee reestablished the original text that had been sent to the Senateincluding among other points, article 111 which requires the Executive Branch to submit within 60 days a Law to establish cuts in special regimes and exemptions from various taxes, such as VAT.

Income Tax: main points of the project

  • In the case of Income Tax, the Cedular Tax is eliminated. This tax is paid on salaries of $2.3 million or more. This is what was left after the repeal of the fourth category in 2023.
  • With the restoration of Earnings for the fourth category, the new floor is $1.8 million gross salary for single people without children and $2.3 million for married people with children.
  • If retirement and social work discounts are made, there are out-of-pocket salaries of $1.494 million and $1.98 million.
  • The annual deductions will then be: Non-taxable income, $3.091 million; spouse, $2.9 million; child, $1,468,096; Special Deduction for Employment Relationship, $14.8 million; Special Additional Deduction for Christmas Bonus, the proportional amount of the previous deductions is added.
  • Individuals will pay taxes from 5% to 35%.
  • The maximum rate of 35% will apply from an annual net taxable income of $36,450,000. The tax and deduction scales will be updated for inflation.
  • All workers will pay income tax for all the things they earn. That is, a productivity bonus that was not paid before will now be taken into account, as well as cash shortages or different supplements that benefited some unions.
  • The special 22% deduction for workers from La Pampa, Río Negro, Chubut, Neuquén, Santa Cruz, Tierra del Fuego, Antarctica and the South Atlantic Islands and the Patagones district of the province of Buenos Aires is excluded.
  • The project resolves the problem of the debt that remains from last year when, before the Income Tax was repealed, the AFIP was ordered not to collect the tax. The text validates what was done last year.
  • Only up to $20,000 per year may be deducted from mortgage payments. The Senate worked on an initiative to allow up to $3 million in interest to be deducted, but by eliminating Income Tax, the original version remains in place, which does not establish any changes in this regard.

Source: Ambito

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