The Chamber of Deputies, tonight, is heading to vote on the changes to the Income tax for companies, without the accompaniment of Juntos por el Cambio or Lavagnismo.
The text establishes a rate of 25% for companies with profits of up to $ 5 million; 30% for profits of up to $ 20 million and 35% for companies that exceed that figure. Regarding the distribution of dividends, it stipulates that all companies will pay the same rate of 7%.
The update of the rates will be annual and will be based on the Consumer Price Index (CPI).
“We are reversing the very bad tax reform that was done in 2017. We have already achieved that more than 1 million people stop paying Profits and now we are going to implement a progressive system for companies that will involve a improvement for 90% of companies. We want a more progressive tax system “, he defended before Clarion the deputy of the Frente de Todos, Itai Hagman.
Together for the Change he advanced his rejection. “The law poses a false antinomy of SMEs versus large companies to mask what is a new tax increase, which is in addition to the 18 they have done since Alberto Fernández took office, “said Luciano Laspina (PRO).
“Undo the 2017 tax reform, for which all companies would already be paying 25% tax, and increase the tax by 10 points. As companies have the ability to transfer taxes, this will have an effect on prices and on the real income of consumers, which has not been evaluated, “warned radical Alejandro Cacace.
The lavagnismo was not willing to accompany either. “The project does not support SMEs and has a false progressivity. It responds exclusively to a fiscal necessity understandable, but it collides head-on with the future possibility of the investment needed to create jobs and combat poverty, “he said. Clarion the deputy Jorge Sarghini.
The project was presented by the Executive as a way to fill the fiscal gap – estimated at $ 48,000 million – that will generate the reduction of the income tax floor for individuals, approved in April and that will benefit 1.2 million people, although it was not yet regulated.
For this reason, during the debate in committees, the discussion revolved around the fiscal impact of the measure.
A report from the Congressional Budget Office (OPC) estimated a positive fiscal impact of $ 320,000 million, well above the between $ 45,000 and $ 50,000 raised by the ruling party.
But at that time, the president of the Budget commission, the official Carlos Heller, insisted that it would be less and affirmed that the difference with the OPC document is that that office “compared the impact with a tax rate of 25% to starting from the theoretical assumption that that rate would be in force in 2021, “but making the contrast with a 30% rate” as it had been applied “until December 2020, the impact calculated by the OPC is $ 57,000 million.
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source https://pledgetimes.com/they-vote-the-law-to-increase-the-income-tax-for-companies/
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