New discounts for payment Income tax that are in force cause concern for taxpayers, especially those who believe that they will not benefit from this change introduced in the Regulation on strengthening the family economy, which allows for a greater reduction, while in the new form of the projection, more family obligations of personal expenses that must be submitted are declared in this month of July. These questions are answered by the Zonal Director of the Internal Revenue Service (SRI), Carlos Vicente Marín.

There are also those who do not know whether they should present a new projection of personal expenses because they do not have family obligations and are little harmed in the role of income tax. Who should bear it?

This is the result of the law reform. The person who submitted the SRI GP form in January of this year submitted it under a different tax regime. If you filed it with the reductions in effect at the time and you were not harmed or benefited by this tax reform, you will not be required to submit any tax recalculation form. In other words, if you don’t pay tax today with the personal expense deduction used in January, you don’t have to file the form again. But what about those who earn a little more, with this tax reform, the benefits have been increased according to the number of family obligations, before that was not thought about. Previously, the discount was based on income.

If your reduction was $500 and you have three family obligations: you can be a wife/spouse/cohabitant who does not work plus two children under the age of 21, without calculations I can tell you that you will have a higher compensation, in this case the taxpayer You must present your form in this month of July because what we will do is increase the fee.

Even if there is no charge, is the discount bigger because the minimum used to be $500 and now it’s $900?

The discount amounts to 18% on the lower of the two values: stated estimated personal expenses and the number of baskets. If you think you will spend $10,000 on personal expenses, can you use 18% of $10,000? Not. Let’s first see how many charges there are. With two refills they allow you to use up to eleven basic baskets and those eleven baskets cost $8411.77. Then you can use not 18% of $10,000 but $8,411.77 which gives a discount of $1,514.12. In this particular example, I would tell the man who put forward his projection in January to put it forward again because with the previous regime the high was around $1,000. Anyone who put $500 on top earners or $1,000 on bottom earners (should) see that calculation. With zero fees you can withdraw $963 now and (due for January) if you’ve earned a lot you could only withdraw $500 so it’s handy.

A person earning $3,000 a month could deduct $500 under the previous regime, that same person, even if they have no burden, will be able to deduct $963.53. So, submit the form.

Can a person with no family responsibilities but pets now increase their personal expenses?

There is no charge for a pet for tax purposes. With no charge, you can use 18% of the seven basic baskets as an income tax reduction, the seven basic baskets cost $5352.95 and you would get a reduction of $963.53. If you used a previous $1,000 rebate, you do not need to submit it, but if your income level used a $500 rebate, please submit it.

The animal is not a burden, but the food and health bills for that animal serve to offset that $5,352.95.

What will depend on whether it will now be mandatory to submit the SRI GP form in July?

It depends on whether the current fee is higher than the rebate you used in January. In most cases it will be higher. Most likely the people who took advantage of the $1000 discount have a bunch. If you have cargo, it’s more because the discount is $1,200. Most people should check blind I’d say now, because you’ll probably pay less, you’re not losing anything. If the employer presents a recalculation and there are no changes, there are no changes. But if you recalculate and there are benefits, you will pay less income tax every month.

If non-reimbursed people don’t want to present a new projection, because seven baskets are kept as the cost limit for them, but the previous reduction was $500 and now it’s $900, does the company have to realign until the new reduction is calculated?

It should be the same discount. Let’s forget what happened this year in January and July. February 2024 arrives, with the new law the projection must be presented that month. The employer does not assume anything (the reduction is based on costs and benefits). If a person does not submit the SRI GP form, what happens? He gives no reduction and they keep it at the source. If a person submitted SRI GP in January, and today decides not to do so, the employer will not assume anything, the employer will continue withholding taxes as before. My proposal is present. Don’t make it complicated, introduce yourself and you will most likely pay less.

SRI’s message is for everyone: the law has changed, submit your projection of personal expenses so that your projection for January is in line with what the law says today because it has changed.

People think that if they don’t come forward, they will continue to discount the same as they do now with the previous projection. But another law is already in force.

They should. This is a controversial question, because we will assume that the person said that he has 8,000 dollars in expenses, but in order to have 8,000 dollars in expenses, I must have two loads and if he does not say now how many loads he has, how will he prove it. The recommendation of the tax administration is not to complicate things, present.

Can companies have confusion?

Exactly. There will be some who will want to keep it the same, there will be others who will want to keep it, especially since he didn’t come up with a projection. To avoid it, so that it is not discretionary, it is better to be present. That’s why I’m repeating myself. It is recommended that you present your projection so that the reduction of personal expenses is in line with what the law says today and pay what you have to pay.

If someone has advanced, they will increase their salary, if they don’t pay taxes now, they will have to later. Or if a new child is born. Will he be able to submit the new form in September?

That is OK. Whenever there are changes in this information that cause a greater reduction in personal expenses, they will have the option of submitting a form. Right now in those months: June and September. If your salary is raised any time before June, you submit it in June, if you are raised immediately in August, it is your turn in September.

So this person shouldn’t be filing now but in September?

My message is that any dependent worker who has family responsibilities and intends to use personal expenses must file now and when their pay increases, they must file again.