Retroactive for Earnings: how much will the AFIP return to the workers if the changes to the tax are approved?

This week the ruling party could have a favorable opinion to treat the law that modifies the floor from which the workers in a dependency relationship will begin to pay the Income Tax.

In the last hours it began to circulate the draft with the accepted modifications of the bill and with some attached data, such as how much each job would receive in April when the Federal Administration of Public Revenues (AFIP) returns what was charged in January, February and March.

In point 9 of the document you could access Infobae It is established that the validity of the project will be “retroactive to January 1, 2021 and the tax relief will be greater.”

It is additional tax relief will reach 1,267,000 workers and retirees that they are going to stop paying the tax for the new apartment of $ 150,000, but that they paid it during the first quarter and that it will be returned to them “in the April paycheck.”

“With this measure, the State generates a positive impact on the pockets of workers and retirees of $ 10,000 million during April that will be turned directly to consumption,” the document explains.

In the work carried out by the technicians around the president of the Chamber of Deputies and author of the project, Sergio Massa, with the endorsement of the Ministry of Economy, Labor and the AFIP, some projected examples are pointed out – depending on the rest of the deductions for each worker, such as a mortgage, private house, etc.–:

With this measure, each of the 1,267,000 workers and retirees would receive, on average, $ 7,893 in their pocket in April for the refund of income tax withholdings for the months of January, February and March.

Mobility and per diem

At this point, which is one of the requests of the transport sectors, the project establishes that it proposes to consolidate an acquired right of the workers and “incorporate the deduction fully into the text of the law – in a similar way to how it is today. established through delegated powers – to avoid limiting the deduction of mobility expenses in the future ”.

Today the law allows the deduction of mobility expenses with the limits established by AFIP.

The “concubine” deduction is added; Currently the law establishes a spouse, and the AFIP regulations will establish the conditions for the deduction, for example: coexistence union act, rental contract, etc.

In addition to having an inclusive look, it impacts a large part of society. Only in the Autonomous City of Buenos Aires in 2018 there were 1,711 cohabiting unions (13%) and 11,732 marriages (87%).

The other modification that has already been established is related to the change in the rule that establishes when a retiree loses the benefit of the deduction.

The law establishes that for the retiree to access the benefit of the deduction of 8 (today 6) assets, they cannot have any other income other than retirement (for example: if they have interests for a fixed term, they lose the benefit) or pay personal property taxes. .

This restrictive scheme was incorporated at the end of 2016 by Law 27,346 promoted by Alfonso Prat Gay as Minister of Economy. Then the tax reform of Law 27,430 promoted by the former Minister of Economy, Nicolás Dujovne, consolidated this criterion.

“The operation of the reform promoted by Prat Gay is absurd: a retiree who has an income of $ 1 for a savings account would lose the benefit of the incremental deduction of 8 (today 6) assets,” they explained from Massa’s environment.

The new bill makes the requirement for the deduction for retirees more flexible by establishing a minimum amount of income to lose the benefit equivalent to the non-taxable income of article 30, paragraph a) of the law, today at $ 167,000.