While in the Chamber of Deputies was discussed (to be approved later) the bill that includes the Changes in Personal Income Tax (IRPF)a delegation from Ministry of Economy (MEF) appeared before the Finance Commission to exchange with the legislators some aspects included in the text, the deductions and since when the tax reduction will be felt in the pockets of taxpayers. The project was approved in both chambers and all that remains is for President Lacalle Pou to promulgate the law.
This Wednesday the undersecretary of the MEF, Alejandro Irastorza; the Director of Public Finance, Fernando Blanco; the director of Economic Policy, Marcela Bensión and the director of the Tax Department, Pia Biestro.
Irastorza explained that the tax reductions that are being proposed, both for the IRPF and the IASS, are not contradictory with all the resources that have been allocated to other areas.
“That is explicit in the explanatory memorandum of this bill, in the event that Resources have already been allocated to priority areas such as early childhood, salary recoveryrecord investment in infrastructure, educational transformation, as well as the increase in resources for everything that has to do with the safety of citizens,” he said.
It added that in the same explanatory statement it was established that the increase in spending given in the Accountability it will increase from US$ 319 million with respect to 2022 and from US$ 337 million in 2024, also with respect to 2022.
“Taking into account that this tax reduction obviously resembles a increase in spending, to these sums that I just mentioned, we must add these US$ 150 million; In other words, we are talking about US$469 million of resources going to be allocated to society, that is, these US$319 million that I mentioned to you plus the US$150 million. And US$487 million by 2024, which is the US$337 million plus these US$150 million, the tax relief,” he explained.
Ines Guimaraens
Regarding the implementation of the changes provided for in the IRPF and in the IASS, Biestro was clear.
“The sooner this bill is approved, the sooner it will come to fruition. We have foreseen the regulatory decree so that As of the settlement of assets and liabilities in April, the liability or worker can see this impact reflected in their pocket“, said.
She was also consulted about the taxes that have already been paid, since the modifications are retroactive to January 1, she explained: “What has already been paid will be returned or that adjustment will be made for those who do not file an affidavit, both taxpayers IRPF and IASS, in the annual adjustment of December”.
He recalled that currently all workers are given a annual adjustment.
“In the assets that are collected in December, the IRPF or IASS liquidation of that year is made, and they are returned or withheld more, depending on some issues, such as vacation salary and some additional issues that the tax has. in his calculation,” he said.
In addition, it clarified that “in the case of those who submit a sworn statement -although we anticipate that from the liquidation of assets or liabilities in April they will already see that drop reflected-, effectively, what was withheld in excess or what was he paid more, they will see him in June 2024”.
He reported that those who submit an affidavit represent approximately 20% of the workers.
Referring to the benefit of the lease credit and the deduction of the mortgage loan, I point out that “yes or yes, an affidavit must be submitted by the worker to access this deduction. Those are within the 20% that will see that benefit in the middle of next year”.
Therefore, he clarified that for the rest, having the law in force as soon as possible and the regulatory decree, it is foreseen that “this relief will already be active in the April settlements, which will be seen at from May when the assets are collected” corresponding to the fourth month.
