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Deputies approved the bill that deactivates the inheritance tax

Deputies approved the bill that deactivates the inheritance tax

The initiative exempts from the IASS voluntary savings that can be inherited and the income differential for delaying retirement for a minimum of three years.

The Chamber of Deputies unanimously approved the bill that the Executive sent to resolve the controversy surrounding the scope of the Social Security Assistance Tax (IASS) on certain items of the new retirement regime after the social security reform.

As if nothing had happened—despite the fact that the decree was published in December and generated controversy for taxing savings of the AFAP that would be transformed into inheritance assets, a “inheritance tax” undercover—the government sent the Parliament at the beginning of the month a project to defuse the scandal over the creation of a new tax outside the constitutional mechanisms.

That project was voted on Thursday in the Lower House with two new articles added after the parliamentary discussion, with the aim of complementing the proposal; one of which applies to the people affected by the measure that was reached exempted pension items by law. Now, it must be dealt with in the Senate, in early May, where they also expect quick approval.

What do the project and its modifications say?

The project voted on in Deputies establishes that people who defer their retirement request for a minimum of three years—a possibility enabled in the social security reform they will not be reached by the IASS the capital granted in reward for said decision; something that was taxed from the Executive decree, going against the objective stimulus that the measure had to delay retirements.

In the same way, the initiative that already has half a sanction declares that the inheritance assets protected in an AFAP, liable to be inherited in the event that the person dies before retiring, do not constitute assets taxed by either the IASS or the Personal Income Tax (IRPF).

Regarding the articles added in the discussion in the Lower House, one of them establishes that if the items exempted in the project had already been subject to withholding, the refund of amounts corresponding within thirty days following the promulgation of the law. This was designed to compensate the people who were already affected by decree 412/023, in force since December of last year.

The other added article maintains that all the regulatory provisions issued by the Executive power or for the General Tax Directorate (DGI) that oppose the interpretations provided in the law will have no legal effects of any kind; in the absence of the repeal of the decree in question, as the deputy of the Colorado Party, Conrado Rodríguez.

Source: Ambito

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