The Chamber of Deputies managed to reverse the Senate’s rejection of the reinstatement of the fourth category of Profits. In this way, the original text voted in the lower house was approved.
The approved version carried the non-taxable minimum is $1,800,000 gross for singles now $2,200,000 for married couples with children. Thus, around 800,000 workers who had been exempted during the administration of Alberto Fernandezwith rates ranging from 5% to 35%.
If the employee is single and has two dependent children under 18 years of age, the lowest gross salary subject to tax will be $2,100,000, which is equivalent to a net salary of 1,781,277.39 pesos. In the case of a married employee with two dependent minor children, he or she will be exempt from paying tax with a gross salary of less than $2,400,000, which is a net salary of 2,081,277.39 pesos.
In addition, the non-taxable minimum will be updated on a quarterly basis this year, in September, and then on a half-yearly basis based on the Consumer Price Index (CPI).
The Congressional Budget Office estimates that the bill, as approved by the House of Representatives, will provide resources of 0.43% of GDP.
The Senate of the Nation voted to keep in force the cedular regime approved last September and promoted by the former Minister of Economy, Sergio Massawhich exempted around 800,000 taxpayers. The monthly minimum wage under this regulation is 15 minimum living wages, equivalent to a gross salary of more than $3,514,725. This amount may vary depending on the updates to the minimum wage. Currently, it reaches $234,315.
According to a report by SDC Tax Advisors, this scheme establishes a non-taxable minimum of 180 SMVM per year (including SAC). In other words, the establishment of a “profit floor” was left aside and the problem of those who exceed it, who have to quickly pay 35% income tax, was avoided.
By establishing a non-taxable minimum, all those who fall under the schedular tax will never be taxed on profits up to 180 SMVM and will only do so on what exceeds that value.
The Federal Public Revenue Administration (AFIP) again postponed -for the fourth time- the deadline for workers to submit their Income Tax deductions for 2023. Through the General Resolution 5519/2024was extended until mid-July due to the delay in Congress’ decision on the restitution of the tax.
“The beneficiaries of the income included in General Resolutions Nos. 2,442 and 4,003, their amendments and supplements, may – as an exception – submit the sworn declaration form F. 572 Web, through the service ‘Income Tax Deduction Registration and Update System (SiRADIG) – WORKER’, corresponding to the fiscal period 2023, until July 15, 2024, inclusive,” indicates the resolution published this Thursday in the Official Gazette.
There are no changes regarding the date on which withholding agents have time to fulfill their obligation to carry out the annual liquidation of the lien, which is July 31, inclusive.
“The deadline for the employer to make the annual settlement is not extended, meaning that if an employee submits it on June 15, the employer still has to make the annual settlement by July 31. That is, there is less time to make these settlements,” said the tax specialist. Sebastian Dominguez.
“We remember that, through Form F572Web, the following are reported: family responsibilities, salaries settled by other employers, deductions, reliefs, withholdings, perceptions, payments on account and other benefits,” he added.
