These are the changes in the projection of personal expenses for 2022

Workers must present a projection of personal expenses in this January and will have to compulsorily make the annex of expenses that sustains them. Although the deduction of personal expenses as it was known no longer exists – as established in the Economic Development and Fiscal Sustainability Law – this proof is necessary for the reduction of a tax credit.

In this way, taxpayers must credit at least $ 5,000.7 in personal expenses in order to benefit from the tax credit. These personal expenses that will be considered for the calculation of the discount correspond to the following:

• Housing (rents, mortgage interest, basic services).
• Health (medical fees, medicines, glasses, prosthetics, health insurance, deductibles).
• Education (tuition, pensions, uniforms, supplies, art and culture).
• Food (shopping for food and meals prepared in restaurants).
• Clothing.
• Tourism (in registered and licensed establishments).

In accordance with the regulations, the withholding calculation will be done in accordance with the law. To do this you have to follow several steps.

First, calculate the gross income (all remuneration, including tenths, reserve funds). It should be checked whether all this exceeds the value equivalent to 2.13 basic fractions.

The basic fraction is $ 11,310, so the value to verify is $ 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.

However, this discount has a limit that is the value equivalent to seven basic baskets determined by the National Institute of Statistics and Censuses (INEC). At the moment the basic basket of the INEC is at $ 719.65, figure that if we multiply by seven is $ 5,037.55. In the event that the income does not exceed 2.13 times the deducted fraction, then they may be discounted up to $ 1,007.5. If the income exceeds 2.13 times, only $ 503.7 can be deducted.

To establish the monthly withholding, on the other hand, all the salaries that correspond to the worker must be added, except the thirteenth and fourteenth salaries, projected for the entire fiscal year, and deduct the values ​​of the Social Security contribution. The regulation indicates that the rate contained in the table of personal income tax will be applied to the taxable base thus obtained.

From the result obtained, the reduction for the projection of personal expenses will be subtracted according to the limits established in the Law, and it will be divided by twelve, to determine the monthly rate to be withheld for income tax. This according to the last current IR table. (I)