Faced with this, analysts recalled that Severance pay is not subject to income taxexcept in specific concepts.
Andrés Tellado Cañas, partner in the Payroll Taxation and Labor Law Practice at KPMG Argentina, maintains in dialogue with Ambit that, in accordance with current regulations, the amounts paid for severance do not form part of the tax base.
“Regarding the treatment of compensation and gratuities paid due to job termination, the General Resolution (AFIP) 4.003 currently contemplates two different assumptions”says Tellado Cañas.
How Earnings Affect Compensation
First of all, consider that “for the For the majority of employees, compensation or bonuses paid due to job termination do not constitute profits. members of the tax calculation base.”
“Included are the compensation for stability and union allocation -Article 52 of Law No. 23,551-, and compensation for dismissal due to pregnancy -Article 178 of the Employment Contract Law-, and bonuses for termination of employment by mutual agreement and voluntary retirement, regulated by Article 241 of the Employment Contract Law,” explains the specialist.
On the other hand, he clarifies that “In the case of employees who hold management and executive positions in companies public and private, such payments do not constitute profits that are part of the tax calculation base in an amount not exceeding the compensation amounts provided for in the Employment Contract Law.”
That is, if a company manager agrees a special bonus from your employer outside the compensation indicated by the Labor Law, This one will have to enter the calculation base.
Diego Fraga, lawyer specializing in tax mattershe commented to Ambit that the idea of leaving compensations out of tax payments is in line with the jurisprudence of the Supreme Court. In principle, it is understood that the affected person has lost his or her source of income.
Other concepts not reached
Beyond the id, the The new law provides that any sum, under any concept, that the employee receives outside of his usual salary, will be covered and subject to withholdings. However, there is an exception regarding the amounts that the company pays to the worker that can be considered as a cost of the company. This would include the payment of the Internet connection if the worker works remotely.
Tellado Cañas indicates that “the General Resolution 5531 of AFIP eliminated the section that excluded from the tax the compensation of teleworking expenses paid by employers according to article 10 of Law 27,555”.
“Without prejudice to them, it should be noted that The reimbursements of expenses that employers make to their workers because they are part of the company’s operation are not subject to the tax, but this, as long as they meet certain requirements such as the existence of the supporting evidence,” says the tax expert.
In this regard, the KPMG tax advisor points out that “each company will have to carry out an analysis of its situation based on how the refunds are being made.”
Source: Ambito
