The project advances July 1 next the adjustment for the maximum billing amounts, so that the monotributistas do not have to jump to a larger scale, or be left out of the Simplified Regime. Although in the original project an index of 29.12% was established, during the debate in the it was decided to increase the billing scale of categories A, B, C and D to 60% to favor lower-income taxpayers.
The changes will have a positive impact on the economic situation of a total of 4,498,419 monotax payers of the entire country, which represents 39% of AMBA and 61% of the provinces.
In addition, only the tax component will be exempted for Categories A ($288 per month) and B. ($555). To give progressivity to the measure, this benefit will apply to “pure” monotributists, that is, those who have no other income, whether from retirement, a dependency relationship, financial income or real estate rental.
This exemption from the tax component will benefit 2.1 million monotributistas, 47% of the total. Meanwhile, it was clarified that social work funds, not social security, will not be affected.
Tax relief for monotributistas and autonomous: what are the changes
The project aims to update the amounts of the maximum billing allowed to be in each of the categories of the scale. It will also renew the income ceilings that allow access to the simplified tax system.
The same initiative also provides for news for the self-employed, who pay Earnings from lower income, compared to employees and retirees. The bill will now go to the Senate to become law.
Changes in the monotax: from when will the changes of the new tax relief law be applied
The maximum income amounts will increase by 29.12%, except for those in categories A, B, C and D, which will do so by 60%. This percentage arises from the annual update mechanism, by which the figures are readjusted each January, taking as a reference the percentage of the increase obtained in the previous year by retirements and pensions from the ANSES general pension system.
If the tax relief law is approved, these changes will apply as of July 1, 2022. Until the 20th of that month, monotributistas must comply with the second recategorization procedure that occurs each year.
How will the scales of the monotax be?
If the new table is approved, they will need to look at their billing for the last twelve months. In this way, the caps by category will be as follows:
- Category A $748,382.07
- Category B $1,112,459.83
- Category C $1,557,443.75
- Category D $1,934,273.04
- Category E $2,277,684.56
- Category F $2,847,105.70
- Category G $3,416,526.83
- Category H $4,229,985.60.
With regard to activities for the sale of personal property, there are three other categories, which will have the following maximum billings admitted:
- Category I: $4,734,330.03
- Category J: $5,425,770.00
- Category K: 6,019,594.89
What will happen to the income caps for monotributistas?
The highest annual turnover allowed in the case of trade will pass, as planned, from $4,662,015.87 to $6,019,594.89 and that corresponding to those who provide services, from $3,276,011.15 to $4,229,985.60.
In case of exceeding these maximum limits, the taxpayer automatically passes to the next scale. The increase in permitted income with respect to the values in force in January 2021 was 32.05% (trade monotributists) and 39.18% (services).
Changes for the self-employed: how the modifications will impact the new law
In the case of freelancers, the initial project proposed to increase the special deduction by 2 times the non-taxable profit, passing the deduction from $505,129.66 to $757,694.52. In this way, the “gap” of the special deduction between the employee and the self-employed was reduced from $707,181.58 to $454,616.72. In addition, for new professionals it rose from 1.5 times to 2.5 times the non-taxable profit.
In the debate on the premises, it was decided to raise the special deduction for the self-employed from 2 times to 2.5 times and 3 times for new professionals. “This is an additional benefit for 140,000 self-employed taxpayers who pay income tax”they indicated from the ruling party.