Milei's government sends project to reduce income tax exemption

The Government of Argentina sent a bill to Congress that reverses the changes applied in September 2023, when, on the initiative of the then Minister of Economy, Sergio Massa, the payment of Income Tax was canceled for around 800 thousand workers and retirees .

According to official information, Income Tax is a national tax that is deducted from assets or income obtained during the calendar year, that is, from the salaries of workers in Argentina.

At that time, then deputy Javier Milei voted in favor of the Alberto Fernández government's initiative and, some time ago, he even stated on open television that before charging a tax he would cut off his arm.

However, the new bill presented restores tax payments for that segment of workers with the “objective of restoring tax revenues eliminated between the months of August and December 2023”, according to the text of the law.

Who will be the affected workers?

Currently, only those who receive gross salaries exceeding 1,980,000 pesos pay Income Tax, which at the informal exchange rate or the blue dollar is equivalent to around US$1,600.

However, from this new initiative, those who receive salaries below this amount will also be included in the new law.

Non-taxable minimum updates

Updates to the non-taxable minimum values ​​(base below which this tax is not paid) will be made from April 1st of this year and will be quarterly per year: January 1st, April 1st, July 1st and October 1st .

These adjustments will be made in accordance with the Consumer Price Index of the National Institute of Statistics and Census (Indec), that is, the official inflation number.