2023-12-18 00:17:01
The Minister of Economy, Luis Caputoplans to send to Congress the review of the latest reform of the Income Tax along with other fiscal initiatives that the libertarian Government seeks to promote.
During the last months of this year, the government of Alberto Fernández, with the impetus of Sergio Massamodified the Income Tax and exempted more than 800,000 workers and retirees from payment.
Through the decree 473/2023the then Minister of Economy ordered to raise the floor of the non-taxable minimum at 1.7 million pesos per monthequivalent to 15 minimum vital and mobile salaries (SMVM).
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With the aim of getting out of fiscal deficit as quickly as possible and as a result of the provincial governments’ claim for the loss of funds generated by the tax reform, Javier Milei would be determined to move forward with the modification within the fiscal adjustment plan.
The new regulatory framework would include reforms of previous versions of the law of many clauses on deductions and benefits, and a one-time reduction for 2024 of 26% of the amounts for the application of the current scale, the agency stated. THAT.
In this way, with the changes that will be introduced in the non-taxable minimum and the special deduction, the Income Tax floor will drop from $1.98 million to $974,515according to calculations of the tax advisor Ariel Bassanetti.
Carlos Melconian criticized Caputo and Milei’s plan: “The level of improvisation is very high”
“The Government is confused if it believes that this will be approved in a week, this discussion will last at least until end of january“he told the news outlet Online Politics a deputy who is part of one of the allied blocs that would support the zero deficit but want to discuss how.
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Next week, Milei will meet with governors to discuss economic plans and listen to the concerns of the provinces. This meeting will be a platform to debate not only Profits, but also other issues of regional interest, such as public works and the national budget.
The content of the articles of the Profit project
Article 1 and 7: They repeal the law that established a floor of 15 vital and mobile minimum wages and modified the nature of the Income Tax by converting it into a schedular tax (without deductions) on High Income.
Articles 2 to 4: They restore the rules of the Income Tax Law prior to last December’s repeal regarding how to treat fixed terms, cryptocurrencies and other investments, as well as derivative contracts.
Article 5 and 8: They end the system of special deductions to set the minimum Income Tax, as was done during the administration of Sergio Massa, and also roll back the exemption in the bonus. In this way, the new Income Tax floor for 2024, for workers in a dependency relationship and retirees, will arise from the sum of the non-taxable minimum (it will be $90,780.71 in January), plus the sum of 3.8 times that same figure.
Articles 6 and 10: they set the table of rates for human beings in it, which is in force and states that, starting in 2024, it will be updated by RIPTE, from October to October. For the only time, for fiscal year 2024, 26% must be deducted from the amounts provided in the scale, prior to the application of the corresponding Income Tax rate.
Articles 11 and 12: By 2023, employees and retirees will be governed by the rules in force at the initiative of former Minister Massa.
Article 13: empowers the Executive Branch to raise the floors of the progressive scale of Income Tax and deductions.
Article 14: The validity of the rule will be from the publication in the Official Gazette.
THAT
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