what is the effective rate that companies will pay / Argentina News

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The economic cabinet met with representatives of the blocks of deputies and senators of the Frente de Todos to review the legislative agenda

The economic cabinet, led by the chief of staff, Santiago Cafiero, and the Minister of Economy, Martín Guzmán, met with representatives of the blocks of deputies and senators of the Frente de Todos to review the legislative agenda and keep track of tax initiatives.

In that sense, it was resolved to send to Congress a draft of Corporate Profits with amendments.

The initiative reverse the tax reform of 2017, implemented by the Government of Together for Change.

Profits: what is the effective rate that companies will pay

Companies will pay 25% for a first tranche of benefits of up to $ 5 million pesos annually, 30% for an intermediate tranche of $ 5 million to $ 20 million pesos annually, and for benefits above that threshold it will be increased to 35%. The 7% rate would be maintained for distributed dividends in all cases.

Here is the new scale:

At today’s values, the new project a 25% rate applies in Earnings only for thes companies that bill up to $ 35,000 per year.

If they earn between US $ 35,000 and US $ 140,000 per year, the 30% rate is applied to Earnings.

If they have a profit of more than US $ 140,000 per year, the Government already considers them in a position to pay the 35% Income Tax rate.

Indeed, If the 7% rate of the dividend distribution is added to them, the companies in the last step face an effective rate in Profits of 39.55 percent.

The meeting, which took place in the Casa Rosada, was attended by the president of the Chamber of Deputies, Sergio Massa; the senator of the FdT Carlos Caserio, and his peer, Anabel Fernández Sagasti, and the president of the Budget and Finance Commission of Deputies, Carlos Heller.

Profits: what is the effective rate that companies will pay

Profits: what is the effective rate that companies will pay

Also present were the Vice Chief of Staff, Cecilia Todesca; the head of the AFIP, Mercedes Marcó del Pont; the Secretary of Energy, Darío Martínez; his partner from Tax Policy, Roberto Arias, and the chief of staff of the Ministry of Economy, Melina Mallamace.

Earnings and Monotax Reforms: will be voted on this week

After the Easter break, The upper house resumes its full activity this week in which it will reopen the premises to discuss two projects that this administration considers key and that have the consent of the opposition, so the approval of both is discounted.

So this week, the Wednesday 7 or Thursday 8, the Senate will meet to discuss the income tax reform and the project that changes the Monotributo regime.

In fact, during the short week for the commemoration of Holy Week the Corps worked to rule on both issues. Thus, in successive days, he started the project on Earnings first and then the monotax project. In both cases with the presence of officials: Claudio Moroni, Mercedes Marcó del Pont and the Secretary of Tax Policy, Roberto Arias, were present, presenting before the commissions that were in charge of issuing the corresponding opinions.

Earnings and Monotax: voting this week

From broad consensus reached during the treatment of both issues in the lower house, expedited treatment is discounted in the Senate, where it reached a meeting in each case to receive officials and sign the opinion.

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