Tax relief for the Self-Employed: all about the new measures and how they benefit

Tax relief for the Self-Employed: all about the new measures and how they benefit
September 22, 2023 – 2:11 p.m.

Within the framework of the announcements that the Minister of Economy has been making, a series of benefits were launched for the self-employed segment. This is what’s coming.

Within the framework of the fiscal relief announcements made by the Minister of Economy, Sergio Massa, which aim, as he pointed out, “to correct situations that, drought and devaluation involved, affected millions of Argentines,” some measures aimed at professionals and self-employed merchants.

It should be remembered that the autonomous worker It is one who carries out an economic activity, on a habitual, personal and direct basis for profit, without an employment contract and this category is included in the general regime of the Federal Administration of Public Revenues (AFIP) since 1994.

The benefits for self-employed

As anticipated by the minister, the measures that will be taken for this segment of workers will bring relief to some 700,000 professionals and small self-employed merchants and the advertisements contemplate the following benefits:

  • The extension, for after March 1, 2024, of payment of personal contribution and Value Added Tax (VAT) September, October, November and December: remember that this segment pays the monthly self-employed social security fee, which ranges from $15,710 to $70,000, depending on the category.
  • An update of amounts of the Income Tax withholding scale (General Resolution AFIP 830), which ranges from 5% to 31%.
  • And it is provided that the new amount not subject to withholding is $160,000 (the minimum from which professional fees begin to be withheld). It is worth mentioning that the withholding regime covers payments made, for any reason, by commercial and civil companies – regular and incorporated in the country – to self-employed workers and is applied to the sums received by the aforementioned self-employed workers, in concept of advance fees or remuneration or compensation for the performance of technical-administrative or other functions.

Ads for freelancers: a step towards greater change

The announced measures can be applied without the need to approve a new law, so their implementation is a first step before the implementation of the new simplified regime for the self-employed, called “SIMPLE”, which does require a specific rule.

This regulation would apply to human persons – professionals, service providers, merchants – who do not have monthly income greater than 15 minimum vital and mobile salaries (that is, $1.7 million). Are powill be able to opt for this simplified regime that has the following features:

  • It is different from the monotribute
  • It includes a single monthly payment, which covers social security, VAT and Profits
  • Payment will be determined as a percentage of billing

Source: Ambito

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