After more than 20 years of its creation, the system of Monotributo continues to operate and incorporating workers and small taxpayers into the tax system and allowing them to contribute to a retirement and social security system based on their work.
Although it has undergone several modifications and has been the focus of controversy, its system remains in force and is kept up to date based on the new needs of workers within the system. To join the system, the process must be carried out through the website of the Federal Public Revenue Administration (AFIP).
What is the Monotributo?
The monotributo is a tax payment system for small taxpayers with a maximum billing cap per yeardivided into categories according to the income of each company or independent worker.
The AFIP This system is updated every six months based on inflation and price increases. It is mandatory to keep track of the maximum income that the taxpayer has so that the corresponding amounts are charged. according to category to which they belong.
How the Monotributo arises
The Monotributo was created in 1998under the presidency of Carlos Saul Menem. It introduced a new approach to formalizing small taxpayers and promoting their social inclusion. Its main objective was not to increase tax collection, but to formalize a significant segment of the population and improve control over the suppliers of these taxpayers.
Prior to their implementation, special regimes focused on the Value Added Taxwithout addressing compliance with other taxes or the contributions to social security and healthwhich had led to tensions.
This regime sought to provide lower-income taxpayers with access to social security benefits, such as Retirement and health carethrough a simple system based on a fixed fee per category. To avoid abuse, additional criteria were established beyond gross income, such as the surface area allocated to the activity and energy consumption. In addition, a sub-regime called “Social Monotribute”, aimed at those sectors most in need of state support.
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How the Monotributo works in 2024
It is a regime optional and simplified A tax for small taxpayers, which consists of a single, fixed fee. This fee is divided into two components: the first is a tax that is established according to different categories, based on factors such as gross income obtained from billing, the surface area dedicated to the activity, electricity consumption and the amount of accrued rent.
The second component is a fixed pension contribution, which covers contributions for retirement and social security. This simplified approach makes it easier for small taxpayers to comply with tax obligations by concentrating several aspects in a single payment.
Current scales of the single tax
- Category A: $6,450,000
- Category B: $9,450,000
- Category C: $13,250,000
- Category D: $16,450,000
- Category E: $19,350,000
- Category F: $24,250,000
- Category G: $29,000,000
- Category H: $44,000,000
- Category I: $49,250,000
- Category J: $56,400,000
- Category K: $68,000,000
Source: Ambito
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