President Alberto Fernández will announce this Friday modifications to the non-taxable minimum of the Income Tax to the wages of workers in a dependency relationshipOfficial sources from Government House reported this afternoon.
The announcement, which will take place at an event scheduled for 11:30 in the Casa Rosada presidential office, will be attended by the Minister of Economy, Martín Guzmán; the president of the Chamber of Deputies, Sergio Massa; and the co-secretary general of the General Confederation of Labor (CGT), Héctor Daer.
The measure is given after announcing a letter with a request in this sense that the president of the Chamber of Deputies, Sergio Massa, sent to the Minister of Economy, Martín Guzmán.
In his usual weekly press conference at the Casa Rosada, Cerruti criticized the position of the opposition by pointing out that “others campaigned to end the tax and in four years of government they did nothing”but that the current administration “committed to raising” the non-taxable minimum of the so-called fourth category “and it complied.”
Sources from the Palacio de Hacienda told Télam this Thursday afternoon that the draft decree that is being promoted to update the ceiling from which the income tax of human persons is taxed “includes the updating of the special deduction in two tranches provided for in the original law according to the updated salary projections and, in addition, the exemption of the first and second installments of the complementary annual salary, for that universe of taxpayers, since The measure will come into effect in June.
“Namely, In addition to the exemption in the complementary annual salary, the limit is also extended so that the benefited workers in a dependency relationship do not pay income tax.specified the same sources.
The letter sent by Massa to Guzmán warned that the non-taxable minimum of $225,937 had been delayed due to the evolution of inflation and the pressure on wages.
“We work protecting and alleviating the situation of the workers; and furthermore, as the joint ventures are on the rise and improve income, in the case of Earnings we foresee a trigger clause, to accompany the improvements,” said the president of Deputies in the letter which he sent to the head of the Palacio de Hacienda.
On May 13, the same day he received Massa’s letter, it was the Guzmán, who is in charge of confirming that the income tax floor for workers in a dependency relationship, it will be updated based on the evolution of inflation.
“It is obvious that the floor from which employees in a dependency relationship pay earnings will be updated based on the evolution of inflation”Guzmán affirmed in response to a question from Télam.
The head of the economic portfolio said on that occasion that “it is what the law reasonably establishes so that the benefit to workers is not lost with inflation, and it is what the Government will execute.”
In his second letter to Guzmán, Massa reiterated his request for an immediate update of the non-taxable Earnings minimum, after an evaluation carried out by the technical teams of the Chamber of Deputies, from which it can be deduced that “the workers and retirees reached have increased substantially in the last two months”.
In this regard, he indicated that in February the number of workers and retirees reached by the tax was 742,964 and what isIn April it had risen to 847,878, with a 14% increase in two months.
Massa’s proposal
Based on these data, Massa proposed that a new updated floor of monthly remuneration be made effective immediately to start paying the tax.
In this way, he assured, “sustainability would continue to be given to the policies of this Government regarding maintain the purchasing power of workers and retirees and strengthen the consolidation of demand and the national domestic market”.
in 2021the salary floor of $150,000, later adjusted to $175,000, allowed 1.5 million workers to stop paying Earnings.
Then, due to inflationary variations, the power was again delegated to the Executive Branch to increase tax deductions during fiscal year 2022.
In this sense, the president of the Lower House proposed an additional increase in the floor from which the tax is paid to keep the percentage of taxpayers covered by the tax constant, so that only the 10% of taxpayers with the highest income pay it.
Although the income tax has existed in Argentina since 1932 (at that time it was called income), it is from 1973 that the so-called “fourth category” was instituted, which is calculated exclusively on the income of personal work, unlike the other three, which cover real estate, shares, interest, dividends, partnerships and sole proprietorships.
