Again and for the ninth time, natural persons, especially salaried workers, will be left without the indexation of the wage exemption. It is a tax measure that would directly affect those who pay under the ordinary income tax regime and simplified taxation procedure, says Samuel Alexis Rodríguez, tax consultant.
The 2021 Budget project will nullify the inflation adjustment established in Article 327 of the Tax Code, which applies to the annual tax exemption for individuals, SMEs, wage earners, teachers, doctors, accountants, lawyers, consultants, and others. This is not something new. From 2016 until probably 2021 the same exemption of RD $ 416,280 equivalent to RD $ 34,685 per month will be maintained, said Rodríguez.
In 2012 and 2015 a similar measure was adopted, by freezing the annual exemption at RD $ 399,923 without adjusting annually for inflation. An accumulated impact of 26% is estimated to the detriment of employees due to the repeated suspension of the inflation adjustment to the annual tax exemption since the first government decision.