This report analyzes the text approved by the Chamber of Deputies on Tax Relief for Small Taxpayers and Self-Employed, amended with respect to the original Bill that was analyzed by the OPC in the report “BILL 2634-D-2022. TAX RELIEF FOR SMALL TAXPAYERS AND SELF-EMPLOYED”. This document updates the fiscal impact estimates.
The main differences between the text approved and the Bill previously analyzed include a different scale of brackets for the taxpayers subject to the Simplified Regime for Small Taxpayers (RS) and the exemption from payment of such tax for certain taxpayers of the new Categories A and B, in addition to the modification of the section related to self-employed taxpayers, increasing the special deduction of Income Tax with respect to the text of the original Bill.
As for the analysis of the fiscal impact, the changes introduced imply a greater decrease in revenue compared to the previous estimate: ARS11.067 billion for the RS (in the previous text it had been estimated at ARS4.566 billion) and the effect on the determination of Income Tax would imply a reduction of ARS55.223 billion (in the previous text it had been estimated at ARS29.73 billion).
It is important to remember that, for the Income Tax, if there is no adjustment in the current regulations on the amount of the advance payments to be made, the effect on the tax revenue would start to be observed as from June 2023, once the tax return for the fiscal year 2022 has been filed.