Income tax for individuals earning $2.2 million or more

With the new proposal prepared by Anif, an additional collection of approximately $8.2 billion would be obtained, i.e. 0.8% of the GDP.

The National Association of Financial Institutions -Anif- released its proposal regarding income for individuals has proposed the implementation of a new structure of marginal rates, to expand the base of individuals who declare and pay income, based on a significant change in the threshold above which individuals begin to declare.

“Our proposal is based on a new threshold above which people start to declare and pay income and on a gradual increase of the marginal rates,” the entity indicates.

First, an exempt bracket would be maintained until income close to $2.1 million per month, i.e. a rate of 0%. Thereafter, a progressive structure is proposed, with low marginal rates, ranging from 5% to 15%.

From figures close to $6.5 million of monthly income, i.e. $4.5 million of net income per month, the marginal rates would be between 20% and 25%.

Then, up to $13 million gross monthly income, the rate would be 30%. Finally, for higher incomes, a graduated rate is proposed, starting at 35% and gradually increasing to 40% for incomes over $129.7 million.

According to Anif, according to the proposed scheme, taxpayers would actually start to contribute for a gross monthly income close to $2.2 million, at very low effective rates, close to 0.5 % of the gross monthly income.

With this proposal, an approximate additional collection of $8.2 billion would be obtained, that is 0.8 % of the GDP.

Source: Actualícese