Earnings 2022: what is missing for the new floor to be applied

After the pressure of Serge Massa, Finally, the Government announced this Friday the increase in the floor from which the Income Tax. The increase will be 24.3% and will exempt salaries up to $280,792 gross or $233,057 out of pocket.

At the press conference where the changes were announced, the president of the Chamber of Deputies was accompanied by the Minister of Economy Martin Guzman and the dome of CGT. The officials indicated that the update of the special deduction will be launched from wages earned from June 1 and that bonuses will be exempt.

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Beyond the political announcement, it remains to be known small letter of the changes. So that the modifications can be applied in a timely manner to the payment of next month’s salary (to be deposited until the fourth business day of July), the rapid publication of the decree will be essential.

In this regard, Massa indicated: “Next week they finish closing two missing parity. There the Ripte will be consolidated, which is the mechanism by which the update is built and, once it is consolidated, the decree that will include the exclusion of the Christmas bonus of the payment of income tax.

The remaining points to define

Accountants consulted by TN explained that the details of this last modification (which include the presidential decree and the AFIP regulations) should be published before June 20 to have enough time to settle the salaries of that month and bonuses according to the new withholding conditions.

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“I assign good chances that this will come into force for the liquidation of June salaries, as to give a signal to the population that the Government is attentive to their needs in the face of rising inflation,” he considered. William Perezpartner of GNP Group.

On the other hand, the accounting expert highlighted that, at least in the public statements, the officials spoke of exempt of Income Tax both to the primer aguinaldo (which is charged with the June salary) as at second (which is received in December), provided that they correspond to salaries below the new floor.

“There was a precedent of an old decree that only excluded the complementary annual salary at the end of the year. I believe that these declarations, if ratified in the decree, point to remove that ambiguity”, indicated Perez.

The other point to be defined in the regulation will be the special scale that the last modification of Earnings established so that the salaries that slightly exceed the new floor do not go from not being taxed to paying the highest scales (since the non-taxable minimum itself was not modified).

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According to official calculations, the table of special deductions will apply to gross wages that are between $280.792 y $324.182. “This group has fixed deductions, which change according to a range of amounts. That table is not there and it has to be regulated to indicate exactly what value it reaches and establish the values”, indicated Sebastian Dominguezpartner of SDC Tax Advisors.

“That has to be in the regulations to adapt the systems and avoid problems. We are in time to make the liquidations if this comes out before June 15 or so, or a couple of days later. If it came out closer to June 25, it would get very complicated, “the specialist closed.