Income tax: how to reduce retention – 28/11/2018

December is a complicated and taxed month. In addition to the salary of the month, the bonus is billed, the leave advance (if any) and the first payment of the unpaid bonus recently approved by the government.

How to avoid that rising incomes also increase income tax and end up absorbing more of the salary?

An alternative could be postpone the payment of certain badets for the first four business days of January of 2019. Another is that the employee transmit the information certain expenses which are annual and calculate the authorized percentage of the tax on debits and credits that banks have updated throughout the year.

The possibility of deferring income for 2019, for a few days only, keeps the tax that must be paid by the method of perception can be calculated with personal deductions and ranges of new tables, which will increase by about 23%, which must be published by AFIP for use from 1 January.

According to the reform of the law, this value is determined by the average evolution of stable workers (RIPTE) disseminated by the Ministry of Labor from October 2017 to October 2018.

Income Detail

In December, the salary of the month is loaded or, in the case of a salary, the pay of the fortnight. According to the labor legislation, the December wage and the second fortnight's wages can be paid until the fourth working day of the following month, which would be in January 2019.

Before December 18th, the second installment of the Christmas bonus must be paid in accordance with Law 27 073 in force since 2015.

In addition, employees who go on vacation in January must first receive the advance on wages of days of rest calculated dividing the salary by 25 and multiplying it by the number of days that according to the agreement correspond to it.

At the end of the vacation, in the month of receipt of the salary, the advance made previously must be deducted, but this time by dividing the usual salary by the denominator 30.

The difference that occurs between the discounted amount then discounted, which is called "More holidays", is the only thing that the employer must (if it is greater than 20% of the gross salary of the month) or can (as far as it is of a lower percentage ) distribution in twelve installments for the purposes of calculating the withholding tax on income.

In addition, this year, the first payment of the bond created by Executive Decree 1043, amounting to $ 2,500, was cashed, which, although it is "non-remunerative" You have to pay profits, eat in some cases more than half of the benefit granted.

Logically, all the payments that the rules allow to transfer in the first days of January next year will help reduce the additional pressure that will generate profits this month.

With regard to the bonus, if the detention officer (ie the employer) performed the tasks well, the payment of the he should not put the workers in the know, because the last modification of the profits, made by the law 27.346, the calculation of the retention made during each month should have already incorporated the bonus quota share (SAC) it was won in all this time.

Thus, in December, only an adjustment of the difference between all that was retained in advance and what was collected from the tax would be necessary, so that it is finally paid in the form of an annual bonus.

Some companies pay an additional bonus at the end of the year, which is subject to contributions and contributions due to its usual but often annual nature. This extraordinary payment, if postponed to January, can be apportioned for the calculation of the withholding tax during the twelve months of the following year, thus greatly reducing the tax effect. , which will also be calculated with larger deductions and sections of the tables that will: reign for 2019.

Expenses and payment on an annual account

The closing of the annual information that employees have, that occurs on March 31 of the following year, it could be advanced in December by incorporating 40% of medical expenses and annual hospitalization costs that the employee did for him and his family group responsible for this scheme. These concepts include payments made for all medical specialties, studies carried out, fees paid to medical badistants: for example, speech therapists, psychologistsdentists; co-payments, to the extent that they have not been reintegrated by social work.

With respect to drug costs, AFIP only recognizes those that were provided during the medical care provided. In this way, it is not allowed to deduct the purchase of drugs and prostheses unrelated to the direct medical care provided.

Another annual position, which is allowed to calculate, but this time as a payment on account and not as a deduction from the annual income tax, consists of: 33% of the check tax discounted by banks for all debits and accreditations made in current bank accounts. In accordance with Law 25413 and Decree 380/01, deposits in payroll accounts are not subject to bank withholdings from this tribute who taxes the movements. However, it is likely that the employee has a current account in the package that the bank badigned to him, in which he actually reduced the tax on the check. Then, they should review the bank statements to calculate 33% of the tax charged by all movements in the year 2018 and inform the employer, who will have to pay them back.

Review of other expenses

Since the work of reporting annual deductions is complete, it is convenient to take advantage of the deductions and links reported, month after month, throughout the year 2018. Concerning family members only spouse, children and stepchildren under 18 can be deductedas they have resided for more than six months in the country.

Another condition is that they have not earned a net annual income of more than $ 66,918, regardless of the source of these funds.

It is important to remember that since September of this year, the The AFIP allows children to benefit from a 50% discount for each parent, or 100% only for one of them.

For other deductions, the following concepts can be calculated monthly for the whole year: fees paid in advance the employee and his responsible group, donations recognized entities exempted by the AFIP, mortgage interest for loans for the purchase or construction of homes, up to a limit of $ 20,000 per year, domestic serviceup to $ 66,918 a year, contributions to pension funds professional, room rentals to a maximum of 40% in the year, with an annual limit of $ 66,918, life insurance and burial expenses, contributions to reciprocal guarantee companies and fees mobility and livelihood of brokers and travelers.

Informative statements

For to be exempted present information affidavits of the Gains and personal property, the annual amount of gross income (without rebates) not to be exceeded for the whole of 2018 is a million pesos. Includes taxed and exempt earnings, including all items: bonuses, non-remunerative concepts, etc. It remains to be seen if AFIP will increase this ceiling in the coming days.

On the other hand, in case of equality or exceeding this limit, June 30, 2019 will have to comply with the presentations. If the retention has been well done throughout the year, the realization of the benefits will only be formal; On the other hand, if a balance needs to be paid or a refund requested, the employee will have to register with the AFIP and make the payment or claim the refund, respectively.

In the event that the badets encumbered by Personal property does not exceed the exempt minimum of $ 1,050,000, the theme will also be limited to the presentation. On the other hand, if it is obsolete you must pay the 0.25% tax on the excess amount.