The State’s tax resignation due to the reduction of personal income tax and IASS implies US$ 150 million, said the president
The President of the Republic, Luis Lacalle Pou, appeared this Thursday before the General Assembly and took stock of his third year in government. During his intervention, he announced reductions to personal income tax and IASS and advanced measures for the debtors of Banco Hipotecario. He also referred to the country’s security situation, highlighted several positive economic markers, and concluded that the government has “the illusion intact.”
personal income tax
The president explained this afternoon the reduction to personal income tax that will be implemented. “The deduction will be increased from 10% to 14% for those with lower incomes. The deduction per child will be increased from 13 BPC to 20 BPC, maintaining the doubling in the case of children with disabilities”, he indicated.
In addition, he specified that “the ceiling on the cost of housing will be increased in order to access the mortgage credit deduction; The lease credit will be increased from 6% to 8%.” “These changes in the personal income tax deduction will benefit 75% of taxpayers, while 14%, about 63,000 Uruguayans -those with lower incomes- will stop paying personal income tax,” he announced.
IASS
As for the IASS, he pointed out that in order to “undo this tax in this first stage, the minimum retirement from which the tax is paid will be increased.” “It is proposed to increase the non-taxable minimum from 8 to 9 BPC, at the same time, increase the lease credit to 8%.”
