The Government decided that from May the profit floor will rise. It was reported from the Ministry of Economy that only those who receive assets greater than $506,230 will pay the tax, instead of the current $404,062 that had been in force since January 2023, when the ceiling had also been increased.
This rise in the floor goes hand in hand with the variation in the RIPTE, which is the index that measures the evolution of wages. It indicated that between the month of October 2022 and the month of February 2023, which was the last data published, it was 25.29%.
In this way, the national Executive Power has the power to increase the income tax floor and decreed that as of next month no withholding will apply when gross remuneration does not exceed $506,230, inclusive. With the measure, as reported, some 250,000 employees in a dependency relationship will benefit.
In addition, it was clarified that in the months in which the gross remuneration exceeds $506,230 and is less than or equal to $583,851, withholding agents will compute an increased special deduction.
It should be noted that although in January the rise in the floor was a relief for many workers, now due to the salary increases agreed in parities, the values were out of date, so many returned to pay Profits. That is why the Government returned to establish new values, as officially announced.
