According to recent reports, Economia monotax system, This is to ensure that the taxpayer moves into the general system.
This is not the first time the idea of eliminating . “Mono Tribute”, In fact, the Simplification Scheme for Small Taxpayers combines three charges into one tax: tax, pension contributions (self-employed) and social work. This is voluntary and intended to facilitate the initiation of activities in the formal sphere.
To become a Monotributista, you must fall within certain conditions. income not exceeding $94,805,682 in the past 12 months (approximately $7,900,000 per month), surface area affected by the activity, amount of electricity consumed, and rent.
As already mentioned, in contrast to Monotributo, general systeml, consists of:
- Revenue: Currently, independent workers (self-employed) start paying taxes starting at $1.7 million per month. Progressive scale rates range from 5% to 35%.
- self-employed: Contributions range from $57,000 to $257,000.
- bat: The typical interest rate is 21%.
In addition, you must also pay a fee prepaid drugs This is subject to 10.5% VAT (employee social work is not subject to VAT).
Why can’t economies “shut down” the monotax?
- It distorts your ability to contribute and collect. If a senior executive of one of the largest profit-paying companies receives income from real estate rentals and pays a monotribute, collection will not be possible. For the same income, 35% will be paid as profit.
- There are high pension costs. This is a subsidized retirement plan with contributions of less than $20,000 in the first category.
- Not only does it not generate revenue, but it also causes “fiscal trivialization,” which is very difficult to combat.
What will happen if Monotax is abolished?
elimination of mono tribute It would also involve amendments to the self-employment regime to omit details on minimum and maximum contributions, and amendments to profits to create a single ‘tax-free minimum’.
First of all, the important thing is tax pressure The burden on workers should not be increased, but modifications should be made to improve the situation of workers, by more respectfully and valuing their ability to contribute. This will restore consumption in the economy and make more money available.
suggestion economy It may work if:
- The new tax-free minimum excludes profit income that is not “profits” but applies to cover “groceries” and improves the progressivity of the sections of the scale.
- Assuming that low-income earners are excluded from benefits, the total cost of the goods tax should equal the cost of self-employment.
sit on top What matters is how VAT is resolved. Many of monotributista’s customers are end-consumers, who would have a hard time paying 21% more for their services. On the provider side, it is not enough to assume 21% VAT, it means that they will lose revenue by that percentage.
Opinions/suggestions
existence of simplified structure Contributes to and encourages formality. However, the current system must be reviewed.
Possible solutions are: Keep the first category Monotax and harmonize the transition from the simplified regime to the general regime. It is natural that a general system is more expensive and complex than a simplified system, but there must be consistency and rationality in the transition from one to the other. What exists now is an “abyssal leap.”
This rationality is achieved through improved measurement. ability to contribute. The “tax-free minimum” definitely needs to increase, not decrease, and the progressivity between different sections of the earnings scale should increase as well.
The proposal to abolish the mono tribute There is no doubt that it will respond to the country’s need to increase revenue. On the other hand, there are taxpayers who need income to meet their own needs (“food” for a decent living).
he tax system The proportion of self-employed people has been forever ignored by governments. When compared with the same tax capacity, the lower profit limit for single self-employed individuals is $1.7 million and for employees $2.4 million. This discrimination is truly arbitrary.
the current government have A chance to solve something that no one has been able to solve before: Give self-employed people the tax respect they deserve, with a reasonable ‘landing’ from the simplified system to the general system.
proposed changes It cannot be an informal invitation.
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