Along with the modifications to the income tax code last month, the AFIP tax collecting agency is set to implement changes to the “Monotributo” tax plan. Independent contractors and business owners are able to participate in a program call the Monotributo — a simplified tax scheme in which a person or a business can pay several taxes — IVA, pension and social security — in a single, often easier payment.
AFIP determines how much contributors have to pay depending on how much money they claim to make per month, dividing incomes among different tax brackets.
These are the most important changes in the system, as explained by Infobae:
As of January 10, 2017, the thresholds for these brackets will widen by 75 percent, meaning that the system’s 3 million taxpayers will be automatically re-located to the category previous to the one they were in at the end of last year, and in theory pay less money in taxes than they did last year. “When in doubt, we favor the taxpayer,” AFIP stated.
People will have time to confirm that they should in fact be in their updated category up until April 31st. Those who feel they should have to pay less are encouraged to present their case by January 31st, and continue to pay the tax in the meantime so as to not lose the tax’s benefits.
A new, lower, threshold was created for taxpayers who invoice up to AR $84,000 a year. AFIP estimates 150,000 people will be included in this category during the first trimester and will pay one fifth of what they did last year.
To make the payments, people will have to download a credential form from AFIP’s website. For those who pay through electronic means such as home banking or have it automatically deducted from their debit cards, the sum will update automatically.
As for those who pay in physical locations such as banks, Rapipago and Pago Fácil, if the particular entity didn’t adapt its payment system, people will be allowed to pay what they currently do until May 31st without interest being charged.
These places anticipated it will take them two months to completely implement the updates. However, AFIP Head Alberto Abad said the agency intends to have all operations of the kind conducted through the banking system by the end of the year. He also said people will be able to pay it with their phones as well before the year ends, saying “Monotributo payers will be the first digital contributors.”