The Executive Branch once again adjusted the Base of Benefits and Contributions (BPC) based on the Average Salary Index.
He Executive power adjusted again, from Average Salary Index (IMS)the Base of Benefits and Contributions (BPC) that defines the non-taxable minimum and the bands of the Personal Income Tax (IRPF)just as it had already done in 2022 and 2023.
Following the decree approved yesterday and retroactive to January 1, an adjustment of 9.13% of the BPC is established, so the non-taxable minimum of Income Tax, equivalent to 7 BPC per month, increased from 39,620 pesos to 43,239 pesos. Labor income less than this amount is exempt from paying the tax, and in addition, considering deductions, so are some higher salaries.
He Income TaxAs a progressive tax, it taxes different income brackets at different incremental rates, so the first contribution bracket ranges from 43,240 pesos to 61,770 pesos, and is taxed at 10% in that bracket. At the other end, salaries starting from 710,355 pesos have rates applied to all the corresponding bands, and 36% for the band above that amount.
What happens to those who pay taxes as a family unit?
Regarding taxpayers who choose to pay the Income Tax as Family nucleusthe non-taxable minimum in the event that both members of the couple receive more than a national minimum wage of 22,268 pesos per month, they will have a threshold of 14 BPC per month, that is, 86,478 pesos.
Likewise, if one of the members earns more than one national minimum wage (22,268 pesos), the threshold changes to 8 BPC per month: 49,416 pesos. Deductions can be made for having dependent children under 18 years of age, which increase their value from 9,433 pesos to 10,295 pesos. In turn, those who are responsible for a child with a disability of any age, the bonus will increase from 18,867 pesos to 20,590 pesos.
If the taxpayer’s nominal income is equal to or less than 15 BPC per month, about 92,655 pesos, the deductions are added and considered at a fixed rate of 14%. Those with nominal income greater than 15 BPC can deduct at a fixed rate of 8%.
On the other hand, the limit of the deduction that can be made for the payment of mortgage payments was raised, which always applies if the value of the home does not exceed 1 million Indexed Units (UI), that is, almost 150,000 dollars. The total deductible amount cannot exceed 36 BPC per year, which is now 222,372 pesos, so the maximum deductible amount is about 18,531 pesos per month.
Source: Ambito
