President elect Mauricio Macri announced yesterday that workers who earn under $30,000 will pay no income tax on their twice-yearly bonuses (aguinaldo). He also stated that once in office he will send a bill to Congress to definitively raise the threshold for non-taxable income to the same level.
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Mauricio Macri (photo: Reilly Ryan)
Currently, Argentines who earn above $15,000 must pay income tax. The rate, set in 2013, has been a source of conflict between the government and unions, and during the presidential campaign Macri said he planned to remove the tax entirely.
However, over the weekend, Macri and incoming labour minister Jorge Triaca said the budget was too tight to exempt this year’s December bonuses from income taxes, promising instead to make changes from 2016.
After receiving criticism from key unions, the Cambiemos leader changed course again, saying the measure would serve to guarantee that “what was promised during the campaign will be fulfilled in real and immediate terms.”
The statement also confirmed Cambiemos’ intention to raise the non-taxable income threshold to $30,000, specifying that “soon” after the President assumes power he will send a bill to congress to change the tax law. While congress sessions do not begin until 1st March, Macri said that once approved the law will apply retroactively to earnings received after 1st January 2016.
“This is a key measure to reverse the negative effect that inflation has had on hundreds of thousands of salaried workers who currently pay a tax that they shouldn’t pay or a share that has no real relation to their purchasing power,” said Macri.
The post Macri to Raise Non-Taxable Income Threshold to $30,000 appeared first on The Argentina Independent.
