Updated 9/19/2021 3:30 PM
The tax relief in the income tax for workers in a dependency relationship may not be applied on September salaries, as the Government had promised.
It is that President Alberto Fernández
has not yet signed the decree updating the current salary floor of $ 150,000
gross from which dependent workers begin to pay income tax.
Government sources said that the new floor could be $ 175,000, an
increase of 16.7%,
taking into account the salary increases of the joint companies, so that more than one million workers continue to be exempt from Earnings.
Thus, although the decree is published at the beginning of this week, it should then be regulated, the AFIP will have to disseminate the new standards and technical procedures and then the companies will adjust their accounting and computer devices with the new values,
recalculating the different parameters from January onwards.
All this procedure takes long days and already this week the companies begin to prepare the settlement of the September salaries that they must take effect at the end of the month or in the first days of October.
Consequently, the times do not allow for employers to include with the payment of September salaries the new salary floor of $ 175,000 and adjust in the same proportion the Earnings withholding for the salary segment between $ 150,000 and $ 173,000 gross , which would go to $ 175,000-201,890.
This means that with the collection of the September salary,
workers exempt from Earnings will pay the tax again
and in the coming months they will have to return the excess withheld, adding to the return of the previous quotas.
The same thing happened when the $ 150,000 salary floor was approved.
Originally, the bill planned to apply it to April salaries.
But law 27,617 was approved on April 21.
It was regulated on May 25 (decree 336/2021) and the AFIP regulations were published on June 15 (RG 5008/21).
Due to these delays, in most cases, the new floor and the return of the first installments for what was withheld from January onwards could only be applied to the July and August salaries, which were received until the first days of August and September..
In the case of retirees and pensioners, the increase in the non-taxable minimum from 6 to 8 minimum salaries and the return of the first 2 installments, ANSeS could only apply it on August salaries, less than 4 weeks ago.
Due to higher inflation and salary readjustments, with the changes in the Income tax approved this year by Congress, Article 12 of Law 27,617 empowered the Executive Branch - only for 2021 - to increase the floor of $ 150,000,
to so that only 10% of salaries are taxed by Earnings.
Meanwhile, according to the law, the salary floor must be adjusted annually by the variation of the RIPTE (index of formal salaries prepared by the Ministry of Social Security).
According to the Government, when the floor was raised to $ 150,000 gross, retroactive to January, supplemented by the increase in the non-taxable minimum of retirees and pensioners from 6 to 8 minimum salaries, 1,267,000 became exempt from Earnings.
In the case of retirees and pensioners, the non-taxable minimum of
8 minimum assets
is applied if they do not pay the Personal Assets tax and if they do not have other income or have it - for example, rent, interest - but less than $ 167,678.
In that case, the exemption from the salary floor applies.
In the Government they assure that the new floor of $ 175,000 will allow that same number of workers and retirees and pensioners to
continue exempt and 10% of the workers pay earnings (almost one million).
For retirees and pensioners, the adjustment of the non-taxable minimum is automatic because it is set as a multiple of the minimum credit that is updated every three months according to the mobility formula.
Between September and November, 8 minimum assets are $ 207,376 ($ 25,922 x 8).
On the other hand, for workers in a dependency relationship, the non-taxable minimum (which starts at $ 74,810 net) was not modified.
A flat-sum floor was established or added (the $ 150,000 to be updated in September).
The non-taxable minimum applies to those who receive salaries above the salary floor.
When the Earnings project was prepared in January, the inflationary pattern was 29% and the parity companies agreed to increases of 30/31%.
Now, official inflation is projected at 45.1% and the parity ones revised up the previous scales and
the new Agreements started with increases of more than 40%.