He Ministry of Human Capital in charge of Sandra Petovello established a new requirement to access the Social Monotribute. From now on, the holder who wants to remain registered in the optional tax category of the Monotributo Social must pay 50% of the social work component for himself and for each incorporation of adherents, being exempt from paying the integrated amount and the regular contributions being computed in the Universal Basic Benefit of the SIPA (Argentine Integrated Pension System).
The measure is implemented through the Resolution 630/2024 published this Tuesday in the Official Gazette, where the ministry gives four reasons why this program does not fulfill the function it should fulfill. Although it had recently announced a re-registration, it has not yet been made official.
Monotributo Social: what it is and what its objectives were
The Monotributo Social is a system that allows people to formalize their work, issue invoices, access health coverage for the entire family group and enter the retirement system.
Who can be social self-employed workers?
It is intended for people who carry out an economic activity and are in a situation of socioeconomic vulnerability who meet one of the following categories:
- Low-income self-employed workers.
- Entrepreneurs of the social economy.
- Beneficiaries of social programs.
- Small producers.
The objective of the tool is to formalize economic activity, promoting its inclusion in the tax and social security system of:
- Self-employed workers.
- Low-income microentrepreneurs
What were the objectives of the Social Monotribute?
1. Increase the capacity for integration into the formal economy of subjects registered in the Simplified Regime for Small Taxpayers.
2. The contribution made by the self-employed person is subsidized, in order to achieve “greater sustainability and durability of the ventures.”
Social Monotribute: why for the Ministry of Human Capital this category is of no use
For the Ministry of Sandra Petovello“neither of these two objectives were achieved.” “The number of people in the informal economy has not only not decreased, but has increased, and there is no empirical evidence to demonstrate a causal link between having a social single tax and the improvement in the sustainability and durability of the financed ventures.”
“This management confirmed that the program was virtually in disuse: since 2018 there have been no new registrations to cover the social single tax, although Yes, microcredits have been granted”they added.
On the other hand, they point out, “integration into the formal economy is not limited to national taxes, but also covers local taxes, so the training and assistance that the population sector requires to cover taxes or process local exemptions exceeds the capacity and skills that this portfolio could provide.”
For this reason, it repealed the Resolutions Nos. 2757 dated September 7, 2011 and 1215 dated June 2, 2014both from the then MINISTRY OF SOCIAL DEVELOPMENTsince they have not met the intended objectives and generate a budgetary expenditure that could be allocated to a more effective social public policy.
Social Monotribute: what is the change?
By announcing that those who join will have to pay 50% of the cost of the social security, the self-employed will now have to cover 100% of that cost and joining that category will no longer be a benefit.
It is worth remembering that unlike the common single tax, in the Social single tax is subsidized 100% of the payment of the tax component and the social security, and 50% of the social work. Therefore, a social self-employed person paid onlyThe remaining 50% of what corresponds to social work, until now.
Source: Ambito
