The thing is that the proposal being discussed in Congress not only reduces the minimum from which workers begin to pay Profitsbut also eliminates exemptions that will end up affecting the calculation.
Currently, many concepts are outside the taxwhile the floor is located much higher than the one that the Executive seeks to implement (today, it is defined in 15 minimum, vital and mobile monthly salaries).
But, in addition, there are several groups of workers who enjoy additional advantages that were implemented through other regulations and who could now lose them if the fiscal package is approved.
The thing is that, through an article, the project seeks to put an end to benefits that may arise from union agreements, ministerial provisions and even provincial laws that seek to reduce the impact of the tax on salaries.
Fiscal package law: the article of “discord”
In fact, the article 88 of the tax package states that “any payment received for any concept related to your personal work in a dependency relationship (…) will form part of the tax base.”
So far there is nothing new. For a long time now, everything that a worker received – regardless of whether it was in money or in kind – was part of his or her income.
But now the new law seeks to go a little further. The article makes one more clarification: Provisions contained in any type of laws, decrees, collective labor agreements or any convention or rule to the contrary will not be applicable.
This includes those issued by the National state (considers the Executive, the Legislative, the Judiciary and the Public Ministry), provincial, of the Autonomous City of Buenos Aires and municipal.
Therefore, those that exist today – or those created in the future – that directly or indirectly establish exemption, relief, exclusion, reduction or total or partial deduction will have no validity.
In other words: The only one that will determine which concepts will form the tax base of the tax (and which will be left out) will be the Profits Law, which will be defined with this reform.
What impact will the change have on Income Tax?
To understand the impact that the measure may have, it is important to remember that in recent years many unions obtained exemption or reduction of some concepts that were part of the tax base.
An example is that of truckerswhich at the time the 2023 Budget was voted on achieved an increase in deductions for workers in long-distance land transportation activities.
The state employees of Neuquén were benefited in the middle of last year by a law issued by the provincial legislature that was not considered to have been reached by The concept of “functional dedication” gains.
According to the new text of Profits, all unions (whether public or private employees) will lose these “benefits.” Thus, the possibility of them paying the tax would be guaranteed.
A particular case is that of the oil sector workerswho had obtained the approval of the Ministry of Labor to approve an agreement that allowed them to exempt a part of the overtime from the calculation of the tax.
It is the only one mentioned in the article and considered valid. However, it does so with a clarification: it only applies to “well personnel” (which are the operators) and not to everyone.
Earnings: What about deductions?
This may not be seen as a positive measure by everyone (especially those who will lose their benefits). However, it is good that the tax ends with advantages that only a few can take advantage of.
What should be clarified is that, in the same way that it is sought that all employees have the same deductionsit would be advisable to carry out an analysis of the values that are in force today.
We must not forget that many of them remained the same for many years and came to represent ridiculously ridiculous sums (for example, funeral expenses that were less than $1,000).
If something allows us to distinguish the true taxable capacity of each of the taxpayers (workers, self-employed, retirees, etc.), it is the deductions rather than the income.
Without a doubt, finding a balance is complex. But perhaps it is a good time to consider what tax we want and how we are going to achieve it with the greatest possible tax justice.
Senior Tax Analyst at Expansion Holding.
Source: Ambito
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