In order to raise the tax pressure and increase collection, the Executive yesterday presented the bill to request powers to legislate on tax, fiscal, financial and economic reactivation for a period of 120 days.
The project mentions the axes that the tax reform will have, which would include several modifications to the income tax law (IR).
According to the explanatory memorandum of said law, it is specified that “It seeks to increase collection and improve equity by increasing the burden of the highest-income people.”
A modification that will be sought is to raise the IR rate of first and second category income, as well as modify the IR rates applicable to natural persons, undivided estates and legal persons not domiciled in the country for their Peruvian source income .
It is important to mention that the income of the first and second category includes those originated in the rental and sale of real estate, interests, dividends, the sale of shares, royalties, among others.
According to the Government’s argument, people with higher incomes obtain mainly capital income, while other incomes pay a rate of 5%. While workers affected by work income (fourth and / or fifth category) have a section of inactivity and pay rates of between 8% and 30% for the excess. “In other words, workers bear a greater tax burden than people who obtain capital income.”
In this sense, they consider it necessary to increase capital income charges by reducing the inequity of the tax system.
David Bravo, a tax attorney, explained that the intention with this measure is to equalize taxes.
“The initiative does not say exactly, but we would understand that what is wanted is to equate the income tax rate of these people to the income from work, which is taxed between 8% and 30%. What you want is higher collection ”, he noted.
Currently, fourth category workers can deduct 20% of their income for expenses for the performance of their work, with the limit of 24 UIT, that is, those with annual salaries greater than S / 528,000 cannot deduct. This amount has been considered excessively high by the Executive and they hope to reduce it.
“Less deduction implies a higher tax base, therefore higher tax,” explained David Bravo.
For his part, Francisco Pantigoso, professor of Law at the Universidad del Pacífico, said that another modification proposed by the Executive is to raise the highest marginal rate of labor income, which stands at 30%.
Given this, the professor concludes that the tax reform is targeting taxpayers who obtain more income.
“What is understood between the lines is that those who earn the most pay more, create a rate greater than 30% in the cumulative progressive rates, taking into account that in the world the highest rate is at 35%, surely something more will go up ”, Pantigoso pointed out.
Digital tax
A tax on digital platforms is also included in the tax reform. A VAT collection mechanism would be established for those operations carried out with non-domiciled subjects within the framework of the digital economy.
Likewise, it will also seek to create a simplified IR regime for smaller companies, which encourages the declaration of costs and expenses through their deductions.
This is due to the variety of tax regimes that exist for mypes. The new regime would seek to significantly reduce tax costs.
Adjustments to three mining tributes
The mining sector will not be immune to the tax reform and it will seek to improve the fiscal regime of mining in order to increase its progressiveness.
In this sense, it will be proposed to modify the laws that regulate the Mining Royalty, the Special Mining Tax and the Special Mining Tax, in order to optimize the design of the current fiscal instruments and improve the State’s participation in the income produced. by the exploitation of mining resources, improving the progressiveness of taxes.
The economist and researcher José de Echave recalled that the MEF already specified that the tax reform will work with what was implemented in 2011, and that care will be taken not to affect the competitiveness of the country and in particular the mining sector. Likewise, he considered it commendable that the reform is being worked on with the support of the IMF.
The word
Pedro Francke, Minister of Economy
“Our priority is [plantear] how do we collect the debts of large companies, and how do we carry out a tax reform that allows us to recover higher income with social and tax justice ”.
.
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
