Tax Relief

Argentina approves earnings tax breaks for 93% of employees

Twitter / SenadoArgentina / Archive

First published Current Brazil Network

After the Senate approved an increase in the exemption limit to 150,000 pesos per month (about $ 9,000), 93 percent of workers in Argentina no longer had to pay income tax. The move will benefit retirees with a salary of at least 1.2 million. All senators – with 66 votes – abstained. It was adopted by a large majority in the Chamber of Deputies with only three abstentions.

The decision, says the newspaper page 12Is part of a plan to create a new fund. The Emergency Family Income (IFE for short) responds to the financial crisis caused by the Kovid-19 pandemic. One of the consequences of the health crisis, which has exacerbated the economic crisis traditionally inherited from the administration of current President Alberto Fernandes Mauricio Macri, is that 42% of Argentina’s poverty is also affected. To give you an idea, a wage earner with a total monthly income of 120,000 pesos (7.3,000 R $) paid 3,200,000 pesos (195 R $) per month. He is now excluded. The new law will come into effect on January 1st and the government will repay the amount already charged in April. The financial impact should be 34 to 47 billion pesos, roughly 2 to 2.9 billion US dollars.

Root correction

Another feature of the approved measure is that it highlights the reversal of the tax logic started in December and creates an extraordinary tax on the recognized large fortune. With the aim of mitigating the economic impact of the pandemic, Alberto Fernandes’ government was able to approve a project that is expected to raise 308 billion pesos, or about 4.5 billion pesos, and tax only 0.02 percent of the population.

The central goal now is to regain the purchasing power of wages in order to keep the economy warm. When we left the government in 2015, 1.1 million workers contributed revenue. Macri (Mauritius Macri, former president) campaigned for (workers) not to pay taxes, which doubled to 2.3 million. With this law we want to correct the serious setback that Macri inflicted on the workers’ pockets, ”he said. Page 12 Hose Mayans. Senator Frente de Todos, a supporter of President Alberto Fernandes, presides.

In addition to increasing the income tax exemption record in Argentina, the Exemption Act for on-duty and overtime health workers will apply through September. Daycare costs for children aged three and under are deducted up to an annual limit of 67,000 pesos (approximately $ 4,000). The discount for children with disabilities will be doubled – today it is 78,833 pesos per year (approx. R $ 4820) – the age limit has been removed. Discounts are granted for the purchase of school supplies or for a partner.

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