Income Tax: who pays today and how the amount will be updated

Since 2018 and due to the validity of a law approved at the end of 2016, the variables that define who pays the income tax are updated at the beginning of each year according to the interannual variation, as of October, of the Average Taxable Remuneration of Stable Workers (Ripte).

However, the lowest salary achieved by the tax could be increased by the Executive Branch at any time, because a law approved at the end of 2021 expressly granted it that power.

The Ripte It is an indicator that measures how the wages of workers declared by their employers are doing for at least 13 consecutive months in the pension system. It is a reference of the income of formal workers with a certain level of stability in their jobs. In the first three months of this year, the variable advanced 18.1%.

In a context of inflation and wage recompositions, not applying updates means that there are people who begin to pay taxes even though their income has a lower purchasing power.

Sergio Massa asked to raise the non-taxable minimum.

At the beginning of this year, to determine the non-taxable minimum call that is in force today, an increase of 50.6% was applied to the figure of $150,000; hence today they are discounted Profits to those who have a gross salary greater than $225,937. The latter is the number that the president of the Chamber of Deputies, Sergio Massa, asked to now raise to $265,000, in a letter sent to the Minister of Economy, Martin Guzman.

As for the self-employed, although they are covered by the update each year according to the evolution of the Ripte, they were not covered by the provisions of the law that last year improved the situation for employees and retirees. At the beginning of 2021, while the changes were being debated in Congress, Sergio Massa stated that he was working “on a parallel law” for that group of taxpayers. But, until now, there was no project on the subject. For this entire year, the general deduction for the self-employed is $757,694 (a monthly average of $63,141). From that billing amount, taxes are paid and, from the taxable base, the concepts that can be deducted are deducted.

And for retirement and pensions, a special legal provision defines that the non-taxable minimum is equal to eight times the minimum credit. From June, that figure will be $300,200.

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