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Income tax: how to reduce retention – 11/28/2018



December is a complicated month that affects taxes. Together with the monthly wage, a fee is paid, a deposit on holidays (if appropriate) and a first installment of an unpaid bonus, which the government has recently approved.

How do you avoid that revenue growth will also increase income tax and will eventually eat more of the salary?

An alternative could be postpone payment of some assets for the first four business days in January from 2019. Another is that the employee forward information some expenditure, which is annual, and calculates the percentages allowed debit and credit tax that banks are discounting all year round.

The option of postponing incomes by 2019, for only a few days, allows you to maintain the tax that you have to pay way of perception can be calculated with personal deductions and ranges of new tables, increasing by about 23%, which must be published by AFIP, to be applied from 1 January.

According to the reform of the law, this value is determined by the average development of stable workers (RIPTE), which is extended by the Ministry of Labor from October 2017 to October 2018.

Detail of revenue

In December, a monthly salary is charged or, in the case of wages, a reward for two fortnights. Under labor law, December December salary and pay for the second fortnight may be paid until the fourth business day of the following month, which is January 2019.

By December 18, the second installment of the Christmas bonus must be paid under the law 27.073, which is valid from 2015.

In addition, employees who leave on holiday in January must receive a prepayment for the salaries of those days of rest that are calculated we will divide the salary by 25 and multiply by the number of days that he agrees with him.

At the end of the holiday, in the month in which the salary was earned, the advance deduction must be deducted, but on the same day the usual salary is denominated 30.

The difference that occurs between the amount of advanced less discounted then is called "Plus Holiday", this is the only thing that the employer (if it is more than 20% of the gross wage in a month) or can (if it is a smaller percentage) split into twelve installments for the purpose of calculating the income tax deduction.

In addition, this year, it will collect the first installment of the bond, which was created by Executive Order 1043 of USD 2500, which, despite being "non-profitable" also You have to pay Profit, eating in some cases more than half of the aid granted.

Logically, all the payments that the rules allow to move to the first days of January next year will help reduce the additional pressure this month will bring.

As far as the bonus is concerned, if the detaining agent (ie the Employer) has done well, he paid it on December 18 it should not bring workers to speed, because the last change in profits made by law 27,346, the retention calculation made in each of the months should already include part of the bonus (SAC) it has been achieved all the time.

In this way, in December, only the adjustment of the difference between everything that was previously denied to tax should be made, so that it was eventually paid out as an annual bonus.

Some companies pay an additional bonus at the end of the year, which is subject to contributions and contributions due to its usual but often annual character. This extraordinary payment, if postponed to January, can be split up for the calculation of the detention in the twelve months of next year, thereby greatly reducing the tax effect, which will also be calculated with the larger amounts and parts of the tables that will rule for 2019.

Expenses and payments to the annual account

Concluding the annual information that employees have will appear on March 31 of the following year, it could be shifted to December by incorporating it 40% of medical fees and annual hospitalization costs that the employee did for him and his family group responsible for this regime. These concepts include payments made by all medical specialties, studies done, fees paid to medical assistants: for example, Greek therapists, psychologists, dentists; kopayments, to the extent that they were not restored in the context of social work.

As far as drug spending is concerned, AFIP recognizes only those that were provided during the medical care provided. In this manner, it is not allowed to deduct the purchase of drugs and prostheses that are not associated with direct medical care provided.

Another annual item, which can be calculated, but this time as a payment to the account and not as a deduction of the annual tax on income, consists of 33% of the control tax discounted by banks for all debts and for accreditations on current bank accounts. Under Law 25413 and Decree 380/01, deposits on wage accounts do not suffer from bank retention of this figure tax movements. However, it is probable that an employee in the package provided by the bank has a current account if he has made tax discounts on the check. Then they should will review the bank statements to calculate 33% of the tax charged by all movements during 2018 and inform them of the employer who will have to return them.

Overview of other expenditures

Given the reporting of annual rainfall, it is appropriate to use and check the deductions and references reported monthly during the year 2018. As regards family members only wives and children and foster children under the age of 18 may be discounted, if they live in the country for more than six months.

Another condition is that they did not earn an annual net income above $ 66,918 regardless of the origin of these funds.

It is important to realize that since September of this year AFIP allows children to be reduced by 50% for each parent, or 100% for only one of them.

For other deductions, the following terms can be calculated throughout the year: prepaid costs the employee and his / her responsible groups, donations entities recognized as exempt from AFIP, mortgage interests for loans for the purchase or construction of houses, with a limit of USD 20,000 per year, home services, up to $ 66,918 per year, contributions to pension funds hotel accommodation, up to 40% paid in a year with an annual limit of $ 66,918, life insurance and funeral expenses, contributions to mutual guarantee companies, and mobility and daily expenses of business brokers and travelers,

Informative statement

For be exempt from tax to provide informative statements Profit and personal property, the annual gross income (excluding discounts) that does not need to be exceeded for the whole of 2018 is one million pesos. Includes taxed income and exempt from profit, including all items: bonus, non-profitable terms, etc. It remains clear whether AFIP will raise this limit in the coming days.

On the other hand, in case of compensation or exceeding this limit, June 30, 2019 will have to meet presentationsIf the detention was to take place throughout the year, the realization of the profits would be only formal; On the other hand, if the balance is to be paid or a refund is requested, the employee will need to register with AFIP and make a payment or request a refund.

In the case of assets burdened by the company Personal property does not exceed the exempt minimum amount of US $ 1,050,000, the topic will also be limited to the presentation. On the other hand, if it is exceeded you must pay a tax of 0.25% of the excess.


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