The possibility of increasing the salary tax exemption limit to 12.5 million tomans – rahnam

According to the economic reporter of rahnam News Agency, one of the most controversial was the non-change of the tax exemption ceiling compared to last year, due to the 18% increase in salaries. According to note 16 of the budget bill of 1403, the ceiling of tax exemption and tax rate on the total income of natural persons under titles such as prescribed salaries and benefits or wages, right to work, right to overtime workers, overtime fees, consulting fees, the right to attend meetings, tuition fees, research fees and labor fees in cash and non-cash is as follows:

The ceiling of the annual tax exemption subject to Article (84) of the amended Direct Taxes Law on 4/31/1394 in 1403 is one billion two hundred million (1,200,000,000) Rials (equivalent to 10 million Tomans per month).
This is despite the fact that in the budget bill of 1403, two points are included in the field of salary increase and salary tax, that the simultaneous examination of this field indicates a discriminatory model of increasing the income of minimum wage earners in the coming year, based on this, while the ceiling of the monthly tax exemption is 10 million Tomans is set as last year’s figure and has not been increased, practically the 18% increase in employee salaries including the amount of salary tax in the coming year is far from reality.
In simpler terms, suppose the salary of an employee in 1402 (including regular overtime hours) was about 9 million Tomans, and since the tax exemption limit was 10 million Tomans last year, this amount received was exempt from tax. For the year 1403, the government has presented an 18% increase in employee salaries in the budget bill, based on this, the employee’s salary will reach 11 million tomans, but considering that the income above 10 million tomans is subject to a 10% tax, the final income of this employee is actually The employee will increase less than 18%, i.e. around 15-16%.

Will the tax exemption limit be increased?

It should be noted that the head of the Planning and Budget Organization recently said regarding raising the ceiling of tax exemptions: the base of the financial exemption for salary earners will probably exceed ten million tomans. Since the basis of tax exemption is currently ten million tomans per month, it is possible that in the latest version of the budget bill that the president will present to the parliament, the number of exemptions for next year will increase.

It should be noted that in the circumstances of the need to increase the ceiling of tax exemptions, it seems necessary that considering the recent years, the purchasing power of the minimum wage earners and the lower deciles of the society has been severely affected. In this situation, if the ceiling of tax exemptions is not increased, the actual salary increase of the employees, considering that it is taxed, is practically lower than the announced figures.

What is the mechanism of increasing the ceiling of tax exemptions?

Based on this, it is expected that upon the request of the Minister of Economy, the president will send the budget amendment bill to the parliament regarding the amendment of the ceiling of tax exemptions, so that this issue is corrected in the latest version of the budget bill that is presented to the parliament by the president. .

On the other hand, the point that exists in this regard is that considering the 10% share of salary tax from the total tax revenues, the government’s hands are not limited to increase the ceiling of tax exemptions and the government can change this section of the budget bill. undergo changes.

rahnam’s hearings from informed sources in the government indicate that the ceiling of income tax exemptions for salary earners will probably increase from 120 million tomans to 150 million tomans in the next year’s budget.

Based on this, salaries below 12.5 million tomans will be exempted from paying taxes.

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