The Federal Public Revenue Administration (AFIP) explains in the face of publicly known cases in which theEmployees suffered a higher discount on the Income Tax to 35%, which is the maximum tax rate, that the employee must report the entire year, the deductions and the income received from other jobs until March 31 of each year.
Furthermore, The employer may not deduct more than 35% of the salary in the year as a withholding tax on earnings, but may exceed this limit in the annual settlement that occurs with the April salary, unless the employee expresses in writing his decision to respect this limit.
The withholding can reach the total salary in three cases:
1-If the employee reported only in March wages paid by other employers.
2-If the employee Modify one or more reported deductions, decreasing their value or eliminating them.
3-If the employee does not manifest them to its employees the decision that no more than 35% will be withheld in April.
In such circumstances, the employer only has one opportunity to withhold the tax, thereby avoiding the employee owing tax and having to pay it himself.
Employers generally notify their employees of these obligations in order to avoid the inconveniences that have been reported in recent days.
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