President Javier Milei signed a decree on Friday that regulates the Income Tax, which was published on Monday in the Official Gazette. Starting Tuesday, the fourth category of the tax will be reinstated, following its approval by Congress at the end of June as part of a broader fiscal package.
As a result of negotiations with the opposition, the minimum income threshold will be set at $1.8 million for single individuals, approximately $1.5 million after taxes, and $2.2 million for those with two children, which amounts to about $1.95 million net.
Previously, the non-taxable minimum was equivalent to 15 minimum wages ($234,315.12), translating to $3.5 million gross starting in July.
This change has sparked dissatisfaction among authoritarian figures. The exercise of professional and critical journalism is a cornerstone of democracy, which often irritates those who consider themselves the arbiter of truth.
With the publication of the decree, the new tax structure will take effect in July, impacting the salaries received in the first days of August. This is one of the pending measures following the approval of regulations regarding moratoriums, tax amnesty, and Personal Assets Tax.
Around one million workers who were previously exempt will now start paying the Income Tax, with rates ranging from 5% to 35%. The new payment amounts will begin at roughly $3,000 monthly, going up to $60,000 monthly for those who were previously exempt. Those earning over $2.5 million gross will see payments exceed $100,000 monthly.
It’s important to note that additional earnings such as overtime, bonuses, long-distance travel expenses (for truck drivers), and compensation related to working in the Patagonian region will all be included in the tax calculation.
The minimum non-taxable amount will be updated quarterly throughout 2024, and will then transition to semi-annual updates based on the Consumer Price Index (CPI).
Source: https://www.perfil.com/noticias/economia/gobierno-reglamento-cambios-impuesto-a-las-ganancias-comenzaran-a-regir-desde-julio.phtml
