After a debate of almost 20 hours, the Chamber of Deputies approved in general, with 142 positive votes, 106 negative and 5 abstentions, the draft Base Lawinitiative of the president, Javier Miley. What modifications does it imply and what are its main points.
The tax modifications:
income tax
Income tax is included for the fourth category on salaries greater than $1.8 million for single workers and $2.2 million for married workers with two children. This amount will be updated quarterly this year and, starting next year, it will be updated semiannually.
Money laundering
The modification implies that assets up to 100 thousand dollars will have a rate of 0% and higher amounts will pay increasing rates according to the time they are received.
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Personal property
This tax is lowered, since the non-taxable minimum will rise from $11 to $100 million and the deduction for family housing will go from $56 to $350 million, this will mean a reduction in taxpayers reached. These amounts will be modified annually based on the annual variation in inflation published by INDEC.
Monotribute
The maximum billing limit is $68 million annually and increases in the monthly payment to be paid.
Other central points of the “Bases Law”
delegated powers
The Casa Rosada seeks four authorizations from Congress for President Javier Milei: administrative, economic, financial and energy emergency for a period of one year.
Privatizations
Of the more than 40 companies previously subject to privatization, the Government included nine: Aerolíneas Argentinas, Enarsa, Radio y Televisión Argentina and Intercargo and AySA would be partially privatized; Argentine Mail; Belgrano Cargas; Railways (SOFSE) and Road Corridors.
Incentive Regime for Large Investments (RIGI)
It is for projects that involve an investment amount equal to or greater than 200 million dollars. It involves tax, customs and exchange benefits.
Pension moratorium
It creates the Proportional Retirement Benefit for those cases where the person who reaches retirement age does not have the years of contributions established by law.
Labour reform
The trial period remains valid for six months, but its extension is allowed, especially for SMEs. It may be up to eight months in companies with six and up to one hundred workers; and up to one year in companies with up to five employees. The severance fund is also created as an alternative to compensation and must be established through a collective bargaining agreement. A “compensatory aggravation” is also stipulated for dismissals that, after a court ruling, prove that they were motivated by a discriminatory act.
RB/LT