The Executive Branch sent to Congress the bill called the Law of Palliative and Relevant Fiscal Measures. It is the famous 'fiscal package' that was originally incorporated as part of the Omnibus Law and was later withdrawn.
The official initiative proposes substantial changes in the tax system. The non-taxable minimum and the tax scales during 2024 will be updated “at the discretion of the Executive Branch. ” From 2025, they will be updated annually by the Consumer Price Index (CPI). The details of these initiatives are as follows:INCOME TAX: THE FLOOR IS $1,800,000. The income tax rate will be set at 20%. The tax scale will be based on the CPI, not retroactively. The tax rate would be set based on inflation, not on the non-taxable minimum or the tax scale during 2024. The new tax rates will be applied from the approval of the project, not from the previous versions of the bill. All payments received by workers in a dependency relationship (whether paid by their employer or by a third party) will not be applied to calculate the tax. Exemptions and deductions, among others, will not be applicable. The project repeals the 22% increase in deductions for workers and retirees who reside in the Patagonian area. This affects workers and retirees in the province of La Pampa, Ro Negro, Chubut, Neuquén, Santa Cruz, Tierra del Fuego, Antarctica, and the South Atlantic Islands. No type of exemption or deduction established by law will be applicable, except for oil workers - well personnel - (Law 26176) The obligation to add one-twelfth of the remuneration is eliminated, a situation that currently generates the advancement of the withholding corresponding to the future bonus. Differential treatment for taxed overtime is eliminated. The exemption for on-call and overtime work performed by professionals, technicians, assistants, and operational personnel of health systems is annulled.