The restoration of the fourth category Income Tax approved last night by Congress will mean that something more than 800,000 employees are once again forced to pay their salaries off by their employers every month.
The new law, however, It has some improvements compared to the previous one, how is the greater progressiveness of aliquots and a significant increase in deductions.
Repeal of the Cedular Tax
This tribute had been left alone for salaries of more than $2 million per month. The repeal of this tax is effective retroactive to January 1. Since workers below this salary did not pay throughout this year, the new law contemplates a special deduction so that a debt is not generated.
“It is not reasonable that a measure of this type generates a debt for employees who have already received their salaries and assigned them a destination, especially in the current economic context,” he told Ambit he CEO of SDC Tax Advisors, Sebastián Domínguez.
He explained that, if the law appears in the Official Gazette until June 30, 2024, the special deduction will correspond to the remunerations collected between January 1, 2024 and May 31, 2024. However, if it is published in July 2024, the special deduction will apply to salaries collected until June 30, 2024.
Personal deductions are improved
The new law increases personal deductions between 183.75% and 186.65%. There are no changes regarding the special deduction for certain retirees and pensioners, which remains at 8 guaranteed minimum wages. In addition, a special deduction is incorporated to include the Christmas bonus.
Scales are updated
On the other hand, the scale sections are increased between 186% and 443% compared to those currently in force.
It happens that, as Domínguez highlights, the fiscal package establishes that personal deductions and the sections of the tax scales They will be adjusted semiannually, starting in 2025, in January and July in line with the variation of the Consumer Price Index (CPI) Prepared by INDEC corresponding to the calendar semester ending in the month immediately preceding the update being carried out.
Exceptionally, in September 2024, they will be adjusted personal deductions and the sections of the tax scales for the variation of the CPI corresponding to the months of June to August 2024, inclusive. On the other hand, the Executive Branch is empowered to increase them for the fiscal period 2024 exclusively.
Special treatments are eliminated
The new law eliminates all special treatments. And the tax specialist explained that the Christmas bonus will be covered, as well as, travel expenses or cash failures or any type of component from the income that the unions managed to negotiate with the employers to cancel out the effect of the tax discount on salaries.
Debt solution for 2023
Domíguez recalled that, last year, the Minister of Economy, Sergio Massa ordered the AFIP to modify the income tax scales even without a law from Congress. As a result, employers stopped deducting the tax from their employees, which means that this year the workers technically owed a debt to the agency. “The current law confirms what was done last year,” he said.
How much do you start paying?
For June 2024, the maximum tax base is $2,265,033.81. Domínguez takes this parameter to make the tax estimates considering that the law could be published in the Official Gazette before the end of the month.
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Source: Ambito
