“As they are not grouped under the same sphere, it is often more difficult to exert, in the political leadership, the corresponding weight so that they give you benefit treatment. In relation to the monotributistas, It is the first step between informality and formality and being a mass of approximately five million people, the political leadership must have that sensitivity on the table to be a reader of social moods. For this reason, the relationship of the monotributista is attended first, the second is attended to the employees and the autonomous is relegated to a third issue”said the taxman Guillermo Poch.
According to the presentation made by the Economy Minister, due to the inflationary effects of this year, a fourth correction has to be made to the Income Tax withholding regime for employees in a dependency relationship. According to the advertisements, it seems that self-employed taxpayers are left out of the recognition presented. In this regard, those belonging to that category had the last adjustment in personal deductions in the month of October 2022, when the annual variation of the salary index was incorporated. RIPTE.
On the other hand, the most latent questioning in these months by the self-employed is linked to the five advance payments they are paying, which only next year will be able to be deducted in outdated values, from the tax they have to pay in June 2024. This causes the effects of Argentine inflation to evaporate its value. To these observations, we must add that in the payments they receive from their clients, withholdings are calculated with exempt minimums that have not been updated since 2019.
“Nowadays, it is being put on the table that the self-employed collection regimes have a very important effect because they stop receiving around twenty percent of the billing, in the case of a professional. From the profession we are emphasizing that this should be modified,” explained the tax specialist.
“The retention regime must be modified and, in another aspect, the non-taxable minimum. Increase it above 452,000 pesos, because ultimately, with 3 or 3.5 minimum wages, vital and mobile, You are already among the universe of people who should not be included in the income tax. The minimum, vital and mobile wage is 118,000 pesos and the non-taxable minimum is 452 thousand, then someone who earns the minimum salary automatically falls into the tax regime. The tax is not technically adapted to what the tax theory is,” Poch explained.
Despite the existing inflation, the last adjustment to the minimums and scales for the self-employed was made in 2019, like most tax deductions and discounts. Previously, these minimums were not touched since the era of convertibility, experts recall. This modification does not require a presidential decree, but rather it AFIP has the power and endorsement to carry it out.
To withhold Income Tax, a designation as a withholding agent by the AFIP is not necessary, but all taxpayers (self-employed, etc.) who make monthly payments that exceed the minimums provided by the AFIP must act as such. The settlement mechanics require payments to be accumulated monthly, so that they are compared with the current minimums that correspond to each activity.
In a highly inflationary country, the presumption that “equal income, equal tax” ends up being an unfulfilled premise. Finally, regarding what equitable treatment should be implemented between different tax categories to be a fair tax, Poch concluded: “With this provision that does not happen today, which is why it must be modified or the non-taxable minimum increased.”
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