Although the new scheme of the Personal Income Tax, as it is called Tax to the Earnings of the fourth category, raises a scheme much more progressive than the previous oneon the other hand, Almost all exceptions are eliminated which allowed unions to negotiate wage increases with companies without them being affected. These included overtime and travel expenses.
This is because From now on, as indicated by law, the taxable base of the tax will be made up of the salary and almost any amount given to the employee outside of this.The law is exhaustive in mentioning all the possible concepts included and indicating that no other law or definition of provincial judges or of the City of Buenos Aires can establish exceptions, except those provided by the law itself.
Only two were left standing, so to speak.. One that reaches the oil workers but who operate at the “wellhead”. Administrative employees are not affected. Extraordinary sums earned by the employee will also not be affected.Antarctic campaign personnel.
The government announced this Monday the regulatory decree of the new law, although In order for employers to begin withholding taxes from their employees, the AFIP must publish, It is assumed that imminent, the corresponding general resolution and put the new application on its website.
The new law has the advantage that It is more progressive. It now starts with a 5% rate in the first category, from $1.45 in take-home pay. For a single employee, the last step is 35%, but the gap between each step is longer.
The CPublic accountants and tax advisors warn that there is very little time to do this task and settle the July salaries, which are the ones that will be affected.. Above all, and in the case of large companies, the company’s software must be modified to adapt to the new provisions. In the case of small companies, it is likely that the firm can do the settlement manually.. In the case of large companies, if the software is not ready, it is likely that make a withholding for an estimated amount. What we want to avoid is that, due to not having the tools, the withholding is not made for the July salaries, which are paid in August, and Then in September two discounts have to be made together.
What is going to be paid now?
The law includes in the tax base all income, whether from the agreed salary or additional income.
“With respect to taxpayers covered by paragraphs a) and b) of this article, any payment received for any concept related to their personal work in an employment relationship (whether paid by their employer or by a third party) and/or with the other concepts covered in said paragraphs will be included in the taxable base of the tax under this law,” the law states. It refers to public employees of the three branches of government and to private employees.
The rule clarifies:
“The provisions contained in any type of laws will not be applicable –general, special or statutory, except those contained in this law and its amendments and law 26.176–, decrees, collective bargaining agreements or any other convention or regulation, whether issued by the State (including the Executive, Legislative, Judicial or Public Prosecutor’s Branch) national, provincial, of the Autonomous City of Buenos Aires or municipal, decentralized entities and/or any other subject, through which the exemption, relief, exclusion, reduction or deduction, total or partial, is established or will be established in the future, directly or indirectlyof taxable matter of this tax, of the amounts received by the taxpayers included in sections a) and b) of article 82, whether these are received for any reason including, without limitation, representation expenses, travel expenses, meals, mobility, special bonus, protocol, professional risk, technical coefficient, special or functional dedication, hierarchical or functional responsibility, uprooting, productivity bonus, overtime or any other concept, regardless of the name assigned or to be assigned.”
Source: Ambito
