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Income Tax: Reducing Retention – March 18, 2015



December is a complicated and charged month. In addition to the monthly salary, a bonus, an advance on leave (if necessary) and a first installment of unpaid bonuses, which have recently been approved by the government, are added.

How to avoid the fact that income growth also increases the income tax and ultimately eats a larger part of the salary?

An alternative could be postpone the payment of some assets in the first four business days of January from 2019. Another is that the employee send information from specific expenses that are annual and calculated debit and credit tax that banks were discounting all year round.

Possibility to postpone income for 2019, only a few days, allows you to keep the tax payable perception method can be calculated with personal deductions and new table ranges, which will increase by about 23%, and must be published by the AFIP to be used from January 1.

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

Income Details

In December, a monthly salary or, in the case of wages, a salary of two to twelve days is charged. According to the Labor Law, the wages of December and the second two weeks may be paid until the fourth working day of the next month, which in this case would be January 2019.

Before the December 18th Christmas bonus, the second installment is due under the law of 27,073, which has been in place since 2015.

In addition, those employees who have left their leave on leave in January must receive an advance advance payment on the days of rest which are calculated reducing the salary by 25 and multiplying it by the number of days that according to the contract he meets.

At the end of the holiday, during the month when the salary is received, you must pay in advance, but divide the normal salary with the denominator for this time by 30.

The difference between the amount for which less discounts are given "Plus holidays", is the only employer (if it is more than 20% of the monthly gross salary) or may (insofar as it is less percentage) split into twelve installments to calculate income tax deduction.

In addition, this year, the first installment of bonds, which was created by executive decree No. 1043, amounting to $ 2,500, which, despite the fact that it is "non-performing" You have to pay a profit, in some cases eating more than half of the granted benefit.

It is logical that all payments that the rules allow to move to the first days of January next year will help to reduce the extra pressure that will make profits this month.

In the case of a bonus, if the detainee (ie the employer) successfully performs the tasks, it is paid on December 18 this should not make workers faster, since the last profit modification done by Law 27.346, the monthly deduction for the deduction should already include the bonus quota (SAC) it was earned throughout that time.

In this way, in December, only a correction should be made between the total amount paid in advance and the tax paid, which was ultimately paid out as an annual premium.

Some companies pay an additional premium at the end of the year for which contributions and contributions are due, taking into account its usual, but often annual, nature. This extraordinary payment, if postponed for January, can be split up to calculate the withholding in the twelve months of the following year, thereby significantly reducing the tax effect, which will also be calculated with higher deductions and tabular sections that will be set for 2019. However,

Expenditure and payments for an annual account

Closure of the annual information of these employees takes place on March 31 next year, it could be increased by December, including it 40% medical fees and annual hospitalization costs that the employee did it for him and his family group responsible for this regime. These concepts include payments made by all medical specialties, studies performed, medical assistant payments: for example, speech therapists, psychologists, dentists; joint ownership in so far as their social work has not been restored.

With regard to pharmaceutical expenditure, AFIP recognizes only those provided in the provision of medical care. That way it is not permitted to deduct the purchase of medicinal products and prostheses not related to the provision of direct medical care.

Another annual item that can be calculated, but currently as a payment to an account, not as an annual income tax deduction, consists of 33% of check pay The bank is discounted for all debits and accreditation data held in current bank accounts. In accordance with Law 25,413 and Decree No. 380/01 deposits in salary accounts do not affect the detention of this respect in the bank which taxes pay. However, it is possible that the employee has a downstream account, which the bank granted him, where they made a tax deduction on a check. Then they should Review bank statements to calculate 33% of the tax charged on all movements in 2018, informing the employer who will need to reimburse them.

Review of other expenses

As the annual deductible report is performed, it is easy to use the benefits and revise the deductions and links reported monthly in the month throughout 2018. For family members Only the spouse and children and teenagers under the age of 18 may be dismissed, in so far as they lived in the country for more than six months.

Another condition is that they have not earned a net annual income of over $ 66,918, regardless of the source of those funds.

It's important to remember that since September this year AFIP allows children to discount 50% each parent, or 100% for only one of them.

For other deductions, the following terms can be calculated monthly for the whole year: prepaid expenses from the employee and his responsible group donations units AFIC recognized as exempted mortgage interest for loans for the purchase or construction of houses, with a limit of 20 000 USD per year local service, up to $ 66,918 per year contributions to pension funds professionals rent room rentals up to 40% per annum with an annual limit of $ 66,918, life insurance and funeral expenses, contributions to mutual guarantee companies and mobility and daily expenses for merchant brokers and travelers.

Informative announcements

About exempt from tax Introducing the informative explanation for Profit and personal assets The gross annual income (without rebates), which is not exceeded, is for the year 2018 one million pesos Includes income taxable and exempt from profit, including all items: bonuses, non-reimbursable concepts, etc. It remains to be seen whether AFIP will increase this limit in the coming days.

On the other hand, if this limit is equal to or greater than that On June 30, 2019, presentations will have to be followed. If the storage has been successfully completed throughout the year, the profits will be fulfilled only formally; On the other hand, if the balance or compensation is claimed, the employee will have to register with AFIP, make a payment or demand compensation accordingly.

In the case of AIF encumbered assets The personal property does not exceed the exempted minimum of $ 1050,000, the theme will be limited to the presentation. On the other hand, if it is exceeded you must pay a 0.25% tax on the excess amount.


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