The Ministry of Economy of the Nation announced that as of next Monday employees in a dependency relationship who earn up to $500,000 will not pay income taxdue to the application of the formula that sets the minimum amount
“In this way, with the new floor of the Income Tax, no withholding of the tax will correspond when the gross remuneration does not exceed $506,230, inclusive”they specified from the economic portfolio.
In addition, they indicated: “In those months in which the gross remuneration for the month exceeds $506,230 and is less than or equal to $583,851, withholding agents will compute an increased special deduction.”
Meanwhile, the Palacio de Hacienda added: “In this line, the proposal applicable from May 2023 is linked to the variation of the Average Taxable Remuneration of Stable Workers (RIPTE) of 25.29% between October 2022 and February 2023 (latest data published)” .
Since January 2023, monthly gross earnings that do not exceed $404,062, inclusive, do not pay income tax.
While in those months in which the gross remuneration of the month that is settled exceeds $404,062 and is less than or equal to $466,017, the withholding agents will compute, in the month that is settled, an increased special deduction.
