Tax specialist Sebastián Domínguez clarified that currently a significantly higher remuneration is required for a portion of the salary to be subject to the 35% rate. Specifically, employees will reach this rate in various situations: a single employee with a gross salary of $5,950,000, a single person with 2 children and a gross salary of $6,250,000, and a married person with 2 children and a gross salary of $6,560,000.
If we convert these amounts to dollars, the approximate net salaries to be taxed at 35% would be $4,663, $4,919, and $5,184 respectively. ARCA has published the tables of personal deductions and tax scales corresponding to the period January – June 2025, which allows calculating the salaries of employees exempt from paying income tax and analyzing different scenarios for those who will have to pay taxes.
In January 2025, the salaries up to which employees in the previous examples will not be taxed on income are: $2,280,557 and $1,892,862 for the single employee, $2,654,060 and $2,202,870 for the single person with 2 children, and $3,005,029 and $2,510,231 for the married person with 2 children. Domínguez pointed out that previously, employees who exceeded the income tax threshold quickly began to be taxed at the 35% rate.
However, the 2024 tax reform established greater progressivity in this tax, which has modified the way salary taxation is calculated.
