The Economic Development and Fiscal Sustainability Law established an approximate limit of seven basic baskets.
The personal spending limit that must be taken into account to calculate the income tax reduction (through tax credit), for fiscal year 2022, will be $ 5,037.55. This is the value equivalent to seven basic baskets determined by the National Institute of Statistics and Censuses (INEC) and it is also the limit imposed in the Economic Development and Fiscal Sustainability Law to carry out said calculation.
According to the circular NAC-DGERCGC21-00000007, of December 30, 2021, issued by the Internal Revenue Service (SRI), the value of the basic family basket to be considered for the purposes of the projection of personal expenses and the respective retention in the fountain is the month of December of the previous fiscal year.
As of December, the price of the basic family basket was $ 719.65, according to the INEC report published this Thursday, January 6.
In accordance with the provisions of the Economic Development and Fiscal Sustainability Law, natural persons will no longer be able to deduct their personal expenses, but will be able to apply a tax credit, which limits the amounts to be discounted.
How will the withholding of income tax to workers be, presentation of projection of expenses and annexes, according to the Regulation of the Economic Development Law
To know how much the tax credit can be, you must first establish the gross income (all remuneration, including tenths, reserve funds). It should be checked if all this exceeds the value equivalent to 2.13 basic fractions ($ 24,090.30).
If your income does not exceed this value, then 20% of personal expenses may be deducted from the tax and if it exceeds it may be only 10% of said expenses ($ 5,037.55), equivalent to seven basic baskets.
On the other hand, to establish the income tax, all the remunerations that correspond to the worker must be added, except the thirteenth and fourteenth and deduct the values of the contribution to Social Security. The payment table that has a fixed tax fraction and a percentage that is applied to the surplus must be applied to that value.
The result obtained will be deducted from the reduction for the projection of personal expenses. That is the tax to pay.
According to the regulation of the law, which was issued on December 29, the personal expenses that will be considered for the calculation of the discount correspond to housing (rents, mortgage interest, basic services), health (medical fees, medicines, glasses, prostheses, medical insurance, deductibles), education (tuition, pensions, uniforms, supplies, art and culture), food (food purchases and meals prepared in restaurants), clothing and tourism (in registered and licensed establishments). (I)
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