With this, the new minimum living and mobile will be about $2.03 million gross for a single worker and $2.63 million for a married person with two children.
The variation is made based on what is established Law 27.743 which restored the Income Tax for the fourth category
“The amounts provided for in article 30 and in the first paragraph of article 94 of the Income Tax Law, text ordered in 2019 and its amendments, will be exceptionally adjusted in September 2024 by the coefficient arising from the variation in the Consumer Price Index (CPI) provided by the National Institute of Statistics and Censuses (INDEC), a decentralized body within the scope of the Ministry of Economy, corresponding to the months of June to August 2024.”
As in June, inflation was 4.6%, in July 4% and in August 4.2%, the adjustment that must be made on all scales and deductions is 12.8%, and only for salaries to be paid in October. Then, adjustments will be made in January and July of each year, based on the half-yearly inflation.
As this is an extraordinary issue provided for by law, according to the tax specialist Martín Caranta “the most thorough” to determine the change of the scale “would be a decree and then a General Resolution of the AFIP”, although he considered that the resolution of the organization would be sufficient.
Sebastian Dominguez, from SDC Tax Advisors agrees that “AFIP must publish the tables on its website.” “Technically, even if you can do the calculations, you can’t apply them because you need the tables,” he said.
The tax expert considered that Companies that pay salaries every two weeks will have to wait until they are published, presumably next week.
Earnings: how the scales and deductions will be updated in 2025
It should be noted that, Starting in 2025, tax scales and deductions will be updated based on inflation and semi-annually.This year, there will be an extraordinary update in September due to the price evolution in June, July and August, to prevent inflation from causing a gap.
Under the old regime, the scales were not updated, so every month salaries increased, quickly reaching the non-taxable minimum, and were affected by the 27% tax. Now, this tax is levied on assets in a progressive manner, with rates ranging from 5% to 35%.
The Focus Market consultancy indicated in a report that the salary increase in collective bargaining of employees who pay Income Tax will not translate into an improvement in consumption. According to the consultancy, “the weight of the variation in prices of public and private services on household spending “there is no room for manoeuvre in the acquisition of goods in the same quantity.”
Source: Ambito
