Buenos Aires, December 11 (NA) – The labor reform sent by the government of Javier Milei to the National Congress includes a series of tax incentives to promote employment and tax reductions to ease the tax burden on workers.
Tax Incentives and Job Promotion Labor Formalization Incentive Regime (RIFL): provides for a reduced rate of 2% of employer contributions for one year for new hires who were previously in unregistered employment. Registered Employment Promotion (PER): regularization of unregistered labor relations with condonation of up to 70% of the debt for contributions and levies, extinction of criminal action and removal from REPSAL. This model proposed by the Executive provides for: a) The possibility of regularizing unregistered or deficient labor relations, extinguishing sanctions, debts and criminal actions. b) It grants partial pardons for principal and interest. c) It grants up to 60 months of pension recognition for regularized workers and sets parameters for payment plans. Medium Investment Incentive Regime (RIMI): accelerated amortization in Income Tax and refund of VAT tax credits for productive investments by SMEs. The purpose of this regime is to encourage medium national and foreign investments, promote economic development and value chains, develop and strengthen the competitiveness of the various economic sectors, increase the export of goods and services; and favor the creation of employment. Productive investments are considered to be those destined for the acquisition, elaboration, manufacturing and/or import of new movable goods -except for automobiles-, amortizable in the income tax, as well as the execution of works, to be directly affected to the development of productive activities in the country. Investments in financial assets, portfolio assets and goods of exchange are expressly excluded from the present regime.
Tax Reductions Medium enterprises Tramo 2: US$9,000,000 Contributions to social works: reduced from 6% to 5%. Employer contributions: general rates are reduced (17.40% for large services/commerce and 15% for the rest). Income Tax: reduction of corporate rates (from 30% to 27% and from 35% to 31.5%). Internal taxes: eliminated for insurance, cell phone, luxury items, vehicles, boats and aircraft. Medium enterprises Tramo 1: US$3,500,000 Small businesses: US$600,000
