Withholding regime of Cedular Tax on higher incomes from employment, privileged retirements and pensions, and others.
Tax Law Department Report | Withholding regime of Cedular Tax on higher incomes from employment, privileged retirements and pensions, and others
Through a publication on its website, the Federal Public Revenue Administration detailed that – pursuant to its opinion – as of January 1, 2024, withholdings of the Cedular Tax on higher incomes from employment, privileged retirements and pensions, and others, should be applied to taxpayers exceeding the non-taxable minimum, equivalent to 15 minimum vital and mobile salaries (MVMS).
According to the information published on the website, the procedure for withholdings on taxable incomes is outlined, in its relevant part, in General Resolution 4003/2017, specifically in Annex II.
It is worth noting that no rule has been issued formally modifying General Resolution 4003/2017, nor adapting its provisions to this new Cedular Tax. Thus, according to the tax agency’s criteria, the withholdings to be applied to incomes received during January will be determined considering the following scale:
It should be clarified that, on the website, it has been stipulated that in the subsequent months, the amount to be withheld on the accumulated incomes for the month being settled will be determined by applying the cumulative scale to the same month.
Those acting as withholding agents will be:
a) Individuals or entities paying on their behalf the income subject to the Cedular Tax on higher incomes, either directly or through third parties, and
b) Those paying the mentioned income on behalf of third parties, when these third parties are individuals or entities domiciled or residing abroad.
Do not hesitate to contact us if you require any further information on this matter.
Sincerely,
Santiago L. Montezanti
Enrique López Rivarola