Independents who earn up to S/3,609 per month will not pay income tax

The Ministry of Economy and Finance (MEF) determined that this 2023 the amount of the Tax Unit (UIT) equals its maximum historical progress and goes from S/4,600 to S/4,950, an increase of S/350 as occurred in 1994.

Jorge Carrillo Acosta, professor and finance expert at Pacífico Business School, explains that among the first effects, workers on the payroll (formal dependents) will pay less income tax (IR) on their salaries, so they “will have more money in their pockets.” For example, for a gross monthly salary of S/3,000, the annual income tax savings will be S/196.

It also raises the monthly gross salary limit (on the payroll) to avoid paying income tax, which in 2022 is S/2,300 and by 2023 it will be S/2,475. In the case of independent workers who issue receipts for fees, the maximum monthly amount of issuance to avoid paying taxes increases from S/3,354 to S/3,609.

This new update, calculated each year based on a series of macroeconomic elements, mainly the inflation, It will also cause the personal expenses limit to request a refund of the earned income tax (corresponding to the fourth and fifth categories), which is 3 UIT, to rise from S/13,800 to S/14,850.

And the mypes?

The sales ceiling to be considered a microenterprise is 150 UIT, for which this value rises from S/690,000 to S/742,500. The same goes for the little one. business, whose maximum income limit is 1,700 UIT, increasing from S/7 million 820,000 to S/8 million 415,000, explains Carrillo Acosta.

Similarly, in the MYPE Tax Regime, in force since 2017, the rate of Income tax it is 10% for the first 15 UIT and 29.5% above this amount. Therefore, With the increase in the UIT, the companies that are in this regime will save about S/1,024 in annual taxes.

“The ‘negative’ side of the increase in the UIT is that it will generate a reduction in tax collection, for which reason the Government will have fewer resources to be able to carry out works and reactivate the economy. However, this reduction will not be significant”, says the specialist.

Time to apply for your own home

Thanks to this increase in the ITU, a greater subsidy will also be obtained for the Mivivienda credit, also know as “Good Payer Bonus”.

This update of the MEF will allow paying less property tax and alcabala, since the sections and rates are based on the ITU.

Secondly, the cost of judicial processes and other procedures before the Peruvian State increases, as well as the value of administrative fines.