Argentina: Regulation No. 27.617 comprises adjustments associated to income tax for workers, pensioners and retirees

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In the letter

Law No. 27,617 (“Law”) contains amendments to the Income Tax Law (ITL) relating to the income earned by dependent employees, retirees and retirees.

The law was published in the Official Gazette on April 21, 2021. It includes changes to the ITL related to the income of employees, retirees and retirees.

The main changes are the following:

  • Employees pay income tax (IT) if their gross monthly income exceeds ARS 150,000.
  • Additional annual compensation for employees receiving gross monthly pay of less than ARS 150,000 is exempt from IT.
  • The amounts received as productivity bonus, cash loss or similar concepts for those receiving gross pay of up to ARS 300 with a limit of 40% of non-taxable income are exempt from IT.
  • The deduction for a son, daughter, stepson or stepdaughter is increased once if they are unable to work.
  • The costs for transport and similar compensation paid by the employer are deductible by IT for the amount specified in the collective agreement or, unless otherwise specified, for the amount actually paid, which must not exceed 40% of the amount of non-taxable income.
  • The reimbursement that the employer gives his employees for the concept of kindergarten and / or kindergarten for children up to three years of age, as well as for the provision of educational tools, is not taxed by IT (with certain restrictions).
  • The exceptions for skilled workers, technicians, assistants (including catering and cleaning services) and operational employees in the public and private health system, as well as for waste collectors, related to the remuneration for the concept of compulsory shifts (active or passive) and overtime Health emergencies caused by COVID-19 are regulated in specific and additional ways, has been extended until September 30, 2021.

These provisions apply to fiscal years from January 1, 2021.

Click here to access the Spanish version: Argentina: Income tax for employees, retirees and retirees has been changed