President Javier Milei’s government has dramatically raised the ceiling for annual invoicing of the monotributo tax on the self-employed has moved up from 82 million to 95 million pesos.
Presidential Press Undersecretary Javier Lanari announced Monday that it “is the equivalent of US$74,500 a year.” He said that “in December 2023”, when the Milei government took office, “the ceiling was US$6,300,” at least 12 times less.
The announcement was made on the same day that the INDEC national statistics bureau confirmed a 15.1 percent inflation figure announced for the first half of the year. Scales were modified while the levels of invoicing for the monotributo categories and the instalments were updated. The June inflation figure also defined pension increases for August.
These changes are due to income tax deductions being updated every six months, according to the evolution of inflation in the month of January and July while the levels of invoicing, the rent accrued, the pension contributions and the tax sum of the monotributo are updated in the same way.
The income tax floor – which indicates how much can be earned without being subject to that levy – now passes from a monthly 2.3 million to 2.6 million pesos for the gross salaries of single workers without children and from three million to almost 3.5 million pesos for those married with two children.
The maximum deductions for taxable income have also been increased for certain expenses such as the pay of domestic help, the schooling of children and the rental of housing. Such deductions must be registered in the Formulario F572Web via the Siradig Trabajador system.
Any income above the tax floor plus deductions is levied with progressive rates ranging from five to 35 percent and applied on net income.
Monotributo is a simplified tax regime for small-scale self-employed workers and micro-entrepreneurs in Argentina. It combines income tax and social security contributions into a single monthly payment for low-earning freelancers, sole traders and small business owners.
In the case of workers classified as monotributo, the top category (A) would pass from invoicing up to 7,813,063 pesos monthly to nine million and from 82,370,281 pesos annually to 95 million pesos.
The monthly instalments would go up by around 15.1 percent. The category of 32,221 pesos would rise to around 37,000, the B category of 36,679 pesos would top 42,000 and so on through to the top category. The new values would run from August to next January.
Once ARCA tax bureau publishes the new tables, monotributista taxpayers may adjust their categories until August 5.
“Nobody maintaining the same category need do anything nor those with less than six months activity,” according to ARCA.
The periods to change category are every six months after evaluating the activity of the last 12 months. If there were changes in income, rents, office space or energy consumed, the tax code should be entered for a change of category. If that is not done, it is understood that there have been no changes and the category remains the same.
If a taxpayer does not change their category or does so inexactly, ARCA may change the category “ex officio.” That procedure is initiated when purchases, expenses or bank statements superior in value to the maximum annual gross earnings for that category are detected.
ARCA has informed that “in the next few days the access to changes of category will be cleared following publication of the new consumer price figures with time until August 5 to revise your earnings over the last 12 months and complete the corresponding paperwork.”
– TIMES/NA
related news
