The AFIP will publish the tables that employers and ANSES will have to use to calculate income tax withholdings
The next tasks that employees will have to perform when calculating income tax are due on March 31. Until that date, the year 2020 may be closed.
The inflation that is projected to close 2020 will be close to 36%. And the truth is that, in a year that was atypical due to the coronavirus pandemic, very few activities received that percentage of salary increase during the year that is about to end.
The update that will be incorporated into the personal deductions and the tables to calculate the withholding in this year that begins is 35.38%. In this way, for the calculation of the withholding that will begin to be carried out from the first day of January, the tables will have incorporated the inflation that existed throughout 2020; However, next year’s update will only be noticeable in 2022, producing a mismatch between what workers charge and the tax they have to pay month by month during the next year, according to José Luis Ceteri, a specialist in tax matters.
Soon, the AFIP will publish the tables that employers and ANSES will have to use to calculate income tax withholdings, based on the first payments made of salaries and pensions reached by the tax, from the first business day of the tax. January 2021.
As the settlement method of the fourth category is the one received, and for salaries that are paid from the first day of January (including December, if paid in the first four working days of January), the new ones will have to be used. monthly tables.
The income brackets of the scales used month by month to calculate the withholding also increase by the same percentage.
Then, as of January, singles who receive their gross salary (without the discounts of the 17% receipt plus the union contribution) will pay more than $ 81,047 for married people: $ 94,074 and for married people with two children: $ 107,213, within the value of the salary must include the monthly bonus accrued (8.33%). The next tasks coming up for employees are due on March 31st.
Until that date, the year 2020 may be closed, presenting the SIRADIG – WORKER, a Web form that must be completed despite the fact that no deductions are reported. In addition to adding the annual deductions, corresponding to medical expenses and the payment on account of the Check Tax, it is necessary to check if the other monthly items were correctly reported during 2020.
The calculations begin to pay taxes in 2021.
If they are added deductions, the employer must reintegrate in the month of May part of the tribute that he withheld; On the other hand, if deductions that were misreported are eliminated or information from another salary (moonlighting) or retirement that was collected last year is added, the withholding agent will have to correct and withhold the difference from the tax, in the May payment.
If the company pays prizes or bonuses in December, those amounts will inue entirely in that same month, closing the fiscal period 2020. On the other hand, if they are postponed to January, they may be prorated for the calculation of the Tax to Earnings in the twelve months of next year.
The bonus must be included in the calculation, accruing it month by month, even despite not having been collected, in this way it is taxed before collecting the credit. Tax is paid for overtime, except for the duplication of the value obtained on the holidays that are worked, which are exempt. All taxed overtime is not considered for the step jump of the rate that has to be applied. Vacation advances pay Earnings at the time they are paid.
How 2020 closes
Until March 31, 2021, there will be time for employees to provide the final information, corresponding to the year 2020, employers will have until April 30 to prepare the annual declaration. In addition to medical and Tax To the Check that can be considered as payment on account of the total annual tax, it is important to review it that was loaded in the “SIRADIG” program, during this year to verify that the information is complete, taking into account the following deductions:
1. Dependent relatives
- The Earnings Law allows discount only two family ties, to the extent that they are in charge of the employee, that they have resided more than six months in the country during 2020 and that they do not have annual income, of any kind, greater than 123,861.17 pesos.
- Spouse: only legal bond is allowed, the domestic partner deduction is not enabled. Annual cap $ 115,471.38.
- Children and stepchildren under 18 years of age, or elderly disabled for work. If the parents receive taxable earnings, each one may compute 50% of the deduction amount or one of them 100% of said amount. Annual cap of $ 58,232.65 for each of them.
2. Medical fees: What is paid for healthcare, medical and paramedical services, for example:
- Hospitalization in clinics, sanatoriums and similar establishments.
- Accessory benefits of hospitalization.
- Services provided by physicians in all their specialties.
- Services provided by biochemists, dentists, kinesiologists, speech therapists, psychologists, etc.
- Services provided by auxiliary medical technicians.
- All other services related to assistance, including transporting the wounded and sick in ambulances or special vehicles. Up to 40% of the total amount paid in the year may be deducted for all those concepts for the medical care of the employee himself and that of his dependents that are deducted in this withholding regime. The amounts that after being paid were reimbursed by social works cannot be deducted.
3. Check Tax
- 33% of check tax that the banks retained the employee throughout the year 2020. The salary accounts do not suffer this tax, but generally banks offer checking accounts within the salary account package. If they were used in the year and there were withholdings from the check tax, that authorized percentage may be reported for the employer to refund it in May.
- Amounts that are destined to installments or payments to institutions that provide health care coverage, corresponding to the beneficiary and the family ties that the employee deducts in the withholding. Corresponds to prepaid fees, emergency services, etc.
5. Life insurance
- What is paid for insurance premiums for death cases can be discounted, by 2020, up to $ 18,000 per year.
- Burial expenses of the taxpayer or people deducted by the employee, to the extent that they were not reimbursed. The annual cap for this last item is $ 996.23.
6. Travel expenses
- In the case of brokers and business travelers when they use their own car, they can discount the annual tax amortization of the vehicle.
- Also the interests of the loans to acquire them.
- Made to the national, provincial and municipal treasury and to the entities that were recognized as exempt by the AFIP.
- 40% of the sums paid for rentals of real estate destined to the worker’s home, up to the annual limit of $ 123,861.17. The condition that is set is that the employee is not the owner of any property.
Corresponding to mortgage loans granted for the purchase or construction of real estate for residential homes, up to the amount of $ 20,000 per year.
10. Reciprocal Guarantee
Contributions to the capital stock or the risk fund made by the protective partners of reciprocal guarantee companies. This deduction has no limitation, it is only required that the contribution be kept deposited for two years.
11. Domestic service
Amounts paid to workers in private homes, as consideration for their services, employer contributions and compulsory Work Risk Insurance fee. The annual cap is $ 123,861.17.
12. Other retirement funds
Contributions made to Supplementary Provident Funds, Provident Compensation Funds or similar, created by national, provincial or municipal laws, Collective Labor Agreements or Union Co-responsibility Agreements.
13. Travel expenses
- Expenses of mobility and per diem paid by the employer, in the amounts established in the Collective Bargaining Agreement corresponding to the activity in question or – if not stipulated by an agreement – the amounts actually settled in accordance with the supporting documentation, and up to a maximum of $ 49,544 , 47.
- The expenses incurred by the worker for purchase of clothing or equipment, that is necessary to carry out the work task and that has not been acquired or provided by the employer. This item has no limitation on the deduction, the only condition is that they are expenses necessary to carry out the work and that they have not been reimbursed by the employer.
15. Country tax perceptions
The AFIP provided that the perception of 35% paid by the employees, corresponding to the Country Tax (dollar savings and purchases with cards) can be reported in the SIRADIG SYSTEM by the workers, and can be recovered annually in the closing statement of the year, together with the Check Tax and medical expenses.
In this way, employers will refund in the salary receipts paid in May 2021 the total that was received for that concept. No personal procedure will be required before the AFIP requesting reimbursement, as it was in previous years. Both the reimbursement of these perceptions and those of the Check Tax will be made up to the limit of the total withheld for Earnings throughout 2020.
Beginning of 2021
Along with the closing tasks, we must not forget 2021, since to mitigate the effect that the tax produces on salaries every month it is also convenient to complete the information, on the AFIP website, which is taken into account for calculate withholding from January.
When entering the SIRADIG it should be noted that the information corresponds to the year 2021. Also, in cases of moonlighting, the employer who will act as withholding agent for the new year must be designated. The election is not optional, the worker has to designate the employer who paid the highest wages throughout the year 2020.
The new non-taxable minimum that will be considered for the purposes of establishing the deduction limits for domestic service, rents and 40% of per diem and that enable the computation of family ties will be $ 167,683.25.
The new annual values of personal and general deductions, which apply for the year 2021 are the following:
- Spouse 156,325.15
- Children 78,835.36
- Minimum non-taxable 167,683.25
- Special deduction 804,879.61
- Burial Expenses 996.23
- Life and retirement insurance 24,000
- Mortgage interest 20,000
- Domestic service 167,683.25
Employees who, during the entire year 2020, obtained gross income (all items without discounts) equal to or greater than $ 2,000,000 are required to submit informative sworn returns (without pay) before June 30, 2021. It is likely that the The maximum income amount is updated, forcing fewer workers to have to fulfill this task in front of the AFIP.
These presentations, which do not require formal registration with the AFIP, have to be made using the Personal Property Web and Income Tax Portal programs (simplified system), which are reached by entering the Tax Code and the CUIL number of the employee.