Tuesday, March 28

And when will the advance minimums be updated?

1|A postponed adaptation

The aforementioned minimum amount of these payments on account is, since that year, $500 for individuals and undivided estates, both with respect to Income Tax and Tax on Personal Assets, and $1,000 in the case of legal entities (companies and other subjects), hence the preceding equivalence.

Since the price of both products, as noted, went down until they reached $200/$250. But even so, a quick comparison eloquently shows the deterioration of the current minimum figures in the five years that have elapsed and that their adaptation is essential.

Maintaining this level of minimum advance payment generates a sector of small taxpayers, individuals or micro-enterprises, who will make a contribution whose impact on collection will not be significant, on the other hand, the administrative cost that it causes both for the taxpayer and for himself is significant. Treasury that must show the amounts of these advances in Tax Accounts whose collection impact is minimal.

On the other hand, if it is taken into account that the Government has been assuming a fiscal sacrifice by exempting workers in a dependency relationship from the payment of Profits, there are self-employed workers who, faced with the same income, must pay taxes and possibly, due to the aforementioned minimum , they must enter advances on account of the final tax.

Raising such minimums to reasonable values ​​may be a way to seek a bit of equity and, in parallel, decompress to some extent the expiration schedule of a loaded tax agenda if the three levels of taxation are considered.

Taking this type of measures leads to tax simplification.

Corti(1) says by way of generic and preliminary definition “advance payments are installments of a presumed future tax”, that is, the Treasury presumes that there will be a final tax that will absorb these payments on account. However, that ultimate obligation may or may not exist. In some cases, when dealing with self-assessment taxes, it will be the taxpayer who must inform the tax administration that their advance payments will exceed the final tax. But there are other cases in which this possibility arises from legal modifications; For example, the highest non-taxable minimum in Personal Assets where it was estimated that a large number of taxpayers will stop paying taxes, those who are probably entering advances that will generate balances in favor (applicable according to the fiscal situation of each subject) and of which still Two due dates remain.

2|A beneficial fit

Whenever a minimum or a ceiling is stipulated, there will be those who are left out for a little, but if the amounts from which the payment of advances is mandatory had been kept up to date, there would be many fewer taxpayers who, despite the benefit that exempts them from tax assets, they would currently be faced with the fact of having paid advances, their application as payment on account being uncertain.

(1) Corti, Arístides HM, Tax Advances, Ed. La Ley, 1981, p. 9