The Minister of Economy, Sergio Massa, enabled the increase in subsection Z of article 26 of the Income Tax Law, granting people the benefit of being exempt from paying the tax to those who receive complementary annual salaries of up to 880,000 pesos. (the equivalent of 10 times the Minimum Vital and Mobile Salary). This measure will benefit more than half a million workers throughout the country.
This particularity is carried out with the objective that the workers recompose the purchasing power and generate an improvement in the pocket of the people, which would become a greater consumption and economic activity.
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Currently there are 513,000 workers who are forced to pay this tax monthly (those who receive a salary from $506,230 to $880,000 pay profits), but due to the new regulations they will benefit economically.
In turn, the measure imposed by Massa implies an average out-of-pocket improvement per employee that exceeds $112,600, and an increase over the average out-of-pocket monthly salary of 26%. In this case, the Christmas bonus will have earnings withheld calculated month by month, so the regulation will return what is withheld for these salaries in two monthly installments (equal and consecutive) along with the collection of monthly salaries earned in June and July.
In order to enjoy this possibility, employees must present the refund in a separate line from the salary receipt, clearly identifying the benefit of the measure.