Several beneficiaries were affected by a higher tax withholding than usual due to an “incorrect liquidation criterion.”
He Social Security Bank (BPS) reported an error in the settlement of the adjustment of the Social Security Assistance Tax (IASS) after several beneficiaries throughout Uruguay claim for withholdings higher than usual.
“BPS reports that this (withholding) originated from a incorrect settlement criteriaapplied in the annual adjustment of said tax,” the entity explained in response to the numerous complaints received for a greater than usual withholding in the December receipt.
The people affected by this error are, for the most part, those who “opportunely opted not to apply the non-taxable minimum of IASS,” indicated the BPS.
Given this situation, the agency is analyzing the cases involved, as well as the settlements necessary to correct incorrectly made withholdings. In that sense, and according to the result of the analysis, the Social Security Bank will make “the corresponding returns on January 9.” That is, next Tuesday.
The reduction that applies from January 1
With the beginning of the new year and the entry into force of the Accountability Law approved in the Parliament Last year, a reduction in the IASS also began to take effect since the modification of the non-taxable minimum of the tax.
This means that from the 1st, the monthly income limit In order not to pay the tax on retirements and pensions, it is calculated differently. Thus, the applicable rate of IASS The range that goes from 108 BPC to 180 BPC—between 611,280 and 1,018,800 pesos—was reduced from 10% to 8%. In January 2025, meanwhile, the same rate will decrease to 6%.
The immediate effect of this measure is that the IASS It will no longer be applicable to many liabilities that will become below the cap. As explained by the president Luis Lacalle Pou in March 2023 when announcing this initiative, nearly 20,000 people will stop paying this annual tax.
Source: Ambito
