03/12/2021 7:26 AM
Clarín.com
Economy
Updated 03/12/2021 8:48 AM
The Government sent a bill to Congress that establishes a progressive system of aliquots that will be applied to Capital Companies that
will range between 25 and 35% and to the distribution of dividends that will be 7%
.
The initiative seeks to
reduce the burden of this tax for SMEs, maintain it at its current level for medium-sized companies and raise only in the case of the largest.
In its foundations, the project indicates that this scheme “allows reducing the tax that small companies will pay and maintaining it for medium-sized companies.
It is only increased for larger companies ”.
The administration of Mauricio Macri promoted a reduction in the rate charged to Capital Companies and dividends, which was suspended for 2020, as established in article 48 of the Law of Social Solidarity and Productive Reactivation.
The Executive Power had planned in December to maintain for another year the suspension of that reduction and a 30% aliquot, but now it decided to promote a project to modify the Income Tax law and
establish a permanent system of tribute to these companies.
"For this reason, it is appropriate to introduce permanent modifications to the corporate income tax rate, but with a new innovative scheme in the history of the Argentine tax system that establishes a differential treatment for the benefit of smaller companies or that, for some circumstance obtain low incomes in a determined fiscal period ", added the PEN.
The project turned by the PEN establishes that
Capital companies with a profit of $ 1,300,000
will pay
25%
, a
30% rate for those with a profit of up to $ 2,600,000
.
And a third tranche for companies with
annual earnings over $ 2,600,000 that will pay a 35% rate
.
The distribution of dividends will pay in all cases the aliquot of (7%), through the current schedule tax.
In the latter case, when these large companies pay dividends abroad, the rate will reach almost 40%.
How would the aliquot be for large companies
In the message sent by the Government it is argued that
"this scheme allows reducing the tax that small companies will pay and maintaining it for medium-sized companies
. It is only increased for larger companies."
"With this new scheme, 75% of companies will pay a lower rate of Income Tax than the one in force in fiscal period 2020", which was 30% for all companies.
It highlights that "in this way, a very different public policy orientation is given to the one conceived in the 2017 reform, it was anticipated that a 25% reduction in the rate was foreseen for all companies and this lower rate is reserved for those companies that they obtain a level of income and that hardly distribute dividends ".
In addition, it points out that "the use of marginal rates avoids the incentive to underreport, because moving from one tranche to another only results in paying the highest rate for the excess amount and not for the totality as happens with direct or full rates. ".
And it warns that adopting this scheme would allow increasing tax collection
"without affecting (in fact, benefiting) smaller companies."
The changes proposed in the Income tax for companies appears at the same time that Congress began the treatment of modifications in the application of the tax for employees in a dependency relationship, with the intention of preventing it from being turned off by those workers who receive a gross salary of less than $ 150,000.
The project affirms that the basis of the measure was to promote foreign investment and the reinvestment of profits, but replies that “as various studies have shown, investment in our country is not particularly sensitive to the income tax rate and is fundamentally determined by aggregate demand and economic growth ”.
YN
Look also
The six modifications that Together for the Change proposed to Sergio Massa for Income Tax
Wealth Tax: the judicial paths that those who reject the tax could take