Summary.
Article 1 proposes to amend Article 700 of the Tax Code (Código Fiscal), which sets personal income tax rates according to an individual's net taxable income. The proposed schedule assigns a rate of 0% to net taxable income of up to B/. 13,000.00. For income of more than B/. 13,000.00 and up to B/. 60,000.00, it sets 15% on the amount exceeding B/. 13,000.00 up to B/. 60,000.00. For income of more than B/. 60,000.00 and up to B/. 100,000.00, it sets 25% on the amount exceeding B/. 60,000.00 up to B/. 100,000.00. For income of more than B/. 100,000.00, it sets 30% on the amount exceeding B/. 100,000.00. Each bracket is expressed by reference to the amount above the threshold specified in the article.
The same amendment requires the State to review the exempt base for personal income tax every five years. The bill directs that review to take account of the Ability to Pay Principle and the effects of inflation. Alongside the rate schedule, Article 1 therefore adds a recurring duty concerning the portion of the tax base exempt from personal income tax. That review duty forms part of the proposed wording of Article 700 of the Tax Code.
Articles 2 through 7 propose successive repeals in the Electoral Code (Código Electoral). Article 2 repeals its Article 108; Article 3 repeals its Article 200; Article 4 repeals its Article 201; Article 5 repeals its Article 228; Article 6 repeals its Article 255; and Article 7 repeals its Article 263. These provisions identify the articles to be repealed by number. The tax amendment and these repeals make up the bill's substantive provisions. Its title refers to reducing personal income tax and eliminating fiscal benefits in politics.
Article 8 expressly restates the proposed changes: amendment of Article 700 of the Tax Code and repeal of Articles 108, 200, 201, 228, 255 and 263 of the Electoral Code. Article 9 provides that the proposed law would take effect from the next fiscal period after its publication in the Official Gazette (Gaceta Oficial). The bill therefore concerns the State in its role of reviewing the exempt base, the cited tax and electoral rules, and individuals subject to personal income tax. It could also be of interest to sectors involved in political activity that would be affected by the electoral repeals.
What it proposes.
- Personal income tax rates.
- Periodic review of the exempt tax base.
- Repeal of Electoral Code articles.
Who it would affect.
- Individuals subject to personal income tax.
- The State, regarding review of the exempt tax base.
- Persons subject to the Electoral Code articles proposed for repeal.
Key points.
- Amends Article 700 of the Tax Code to set personal income tax rates according to net taxable income.Art. 1
- Sets a 0% rate up to B/. 13,000.00 and rates of 15%, 25% and 30% on the amounts exceeding the stated bracket thresholds.Art. 1
- Requires the State to review the exempt tax base every five years, taking account of the Ability to Pay Principle and inflation.Art. 1
- Repeals Articles 108, 200 and 201 of the Electoral Code.Arts. 2-4
- Repeals Articles 228, 255 and 263 of the Electoral Code.Arts. 5-7
- Expressly restates the Tax Code amendment and the Electoral Code repeals.Art. 8
- Provides for commencement in the next fiscal period after publication in the Official Gazette.Art. 9