Friday, September 22, 2023

8 keys and what is known so far


The Minister of Economy, Sergio Massa, send to Congress a bill so that workers stop paying income tax who earn up to one million pesos, and retirees, except those with privileges, starting next year. In this note, the measurement detail.

Gains: who can reach?

Only the directors of corporations, CEOs, managers and assistant managers and privileged pensions that involve a very small percentage of the total number of employees in a dependency relationship throughout the country.

Profits: how much does the minimum floor increase?

A will be implemented rise above the minimum floor With more than $1,000,000 in revenue, this is an increase of 40%, to reduce the impact of the post-STEP peso devaluation that pushed prices up more than 20% in the two months of August and September.

Incomes: how much will purchasing power grow?

According to the projections made by the Government, the net income pocket between 21% and 27%. Currently, the minimum floor to be exempt is $700,870.

Profits: why was this decision made?

If we make the basis of BRIBE August, and according to the numbers they manage to Treasury Palace, the number of workers and retirees who pay the tax is 701,928 (that is, 7% of the total number of workers in a dependency relationship). If that floor is not changed, according to official projections, the the number of detainees will rise to 890,000 in December.

Profits: more workers are paid, but at reduced prices

Profits: what is the impact on your pocket?

For one net salary of $667,998.69, the projected increase will be $117,690.32 (+21.4%); in one of $717,998.69 becomes $135,190.32 (+23.2%); in one of $767,998.69, will be $152,690.32 (+24.8%); for one of $817,998.69 becomes $170,190.32 (+26.3%); for one the $867,998.69 becomes $187,690.32 (+27.6%).

They are differences that are similar to inflation at the time, so they prefer updates with the aim of excluding many workers from paying taxes due to the rapid increase in inflation and the equality.

Gains: which sectors benefited the most?

According to the projections of Ministry of Economy the percentage of employees who benefit most from the measure, according to the sectors in which they work, will be:

  • Industry (19.13%)
  • Defense, security, education and public administration (14.5%)
  • Financial intermediation and insurance services (11.94%)
  • Service provision (8.10%)
  • Communication (7.84%)
  • Transportation and storage services (7.71%)
  • Private education (6.33%)
  • Wholesale and retail business (5.82%)
  • Exploitation of mines and quarries (5.82%)
  • Supply of electricity, gas, water and sewage (5.06%)
  • Construction (3.11%)
  • Human health and social services (2.91%)
  • Accommodation services and food services (0.90%)
  • Agriculture, livestock, forestry and fishing (0.65%)
  • Other activities (0.20%).

Profits: how to pay this change?

With minimum floor At $700,870, gross salary of $800,000 pays Income $117,690; one of $850,000 must face $135,190; another $900,000 pays $152,690; someone with $950,000 pays $170,190 and a gross salary of $1,000,000 must pay $187,690 in income tax, according to official data.

Income: when will it be implemented?

The proposal to stop paying the income tax fourth category, workers and retirees, need a law, because in addition to a tax thing it is a “annual” tax in the financial year. It should be effective from January 1, 2024.

However, a “bridge” scheme with similar benefits starting from October salary this year.

Nation World News Desk
Nation World News Desk
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