The Income Tax taxes the “net profits” of natural and legal persons. Said tax is paid annually, although, throughout the year, different “withholdings” are suffered on account of this tax.
For this reason, when paying this tribute, it is extremely important discount withholdings and perceptions suffered in the calendar year.
How is 2022 earnings withholding calculated?
According to him increase in the non-taxable minimum, Those workers who earn less than $330,000 gross they are not owed retain earnings.
On the other hand, those who receive a gross amount between $330,000 with a cap of $431,988, they pay less, since they can deduct an additional progressive rate.
Finally, those who are above $431,988 are fully taxed.
According to the entity, gross monthly remuneration is the sum of all the amounts received monthly, whether in money or in kind, regardless of their denomination and whether or not they are remunerative, for the purposes of determining contributions and contributions to the Argentine Integrated Pension System (SIPA), as well as similar provincial or municipal regimes and are taxed, not taxed or exempt from the tax.
With the last increase, the non-taxable minimum stands at $330,000
It should be noted that this tribute leaves out the amounts received as a proportional payment to the Complementary Annual Salary, also known as bonus.
As for the withholding calculation, this is variable, since it depends on the particular situation of each taxpayer. For example, in addition to the non-taxable minimum, general deductions must be made, such as social work or retirement expenses.
For this reason, and due to its great complexity, it is advisable go to a professional for settle this tax such as a public accountant.
What is the tax base to retain earnings?
The tax base to retain profits is the net profit obtained after subtracting the non-taxable minimum and the different deductions such as the one mentioned social work either retirement. On this basis, rates ranging from 5% to 35% are applied, paying a fixed and a variable component.
The maximum rate that can be applied as earnings retention is 35%
When does profit withholding apply?
applies profit retention provided that the subject, after the respective deductions, there is a “gain”. This is applied when the payment of the profits included in the regime is made, or until the dates established for each situation in article 21.
As for the retained amount It is determined according to the procedure detailed in Annex II (IF 2017-03031438-APN-AFIP). In the event that the treasury has to withhold money, this may not exceed the application of the maximum rate, that is, cannot exceed 35%.
How is Income Tax determined?
For determine the Income Tax the lowest value between the last salary and the average annual salary is taken. Once the lower value is determined, it is the tax base on which the different deductions and, in the case of giving “gain”, the corresponding aliquot will be applied.
Between the usual deductions there are dependent children, social work, social work or prepaid expenses, among others. In addition, in the case of working under a dependency relationship, the non-taxable minimum of $330,000.
Among the general deductions, retirement is one of the most common
In simple terms, There are three types of deductions provided in the calculation of how much you have to pay:
- Mandatory ones (retirement, social work and PAMI)
- Personal (spouse, children, dependents)
- The allowed
In this In the latter case, there are deductions such as the salary of the cleaning staff. However, this it cannot represent more than 5% of the tax. Finally, it should be remembered that, although the payment of the Income Tax is liquidated annually, “discounts” will be suffered throughout the calendar year.
On the other hand, in the case of employees and people who carry out personal work, they are not exempt from this tax, but the payment of this is the responsibility of their Withholding Agent.
