What is Monotributo? Why is it important for freelancers? How were the brackets changed with the Bases Law? Below, all the details.

The recent approval of the Bases Law and the fiscal package by the Chamber of Deputies led to important changes in the regime of Monotributo; which directly affects freelancers and small taxpayers If you're not familiar with the topic, don't worry. In this article we tell you everything you need to know and more.

First things first….

What is Monotributo and why is it important for a freelancer?

In very, very simple terms: it is a system that simplifies the payment of taxes and contributions to social security in Argentina. Instead of having to worry about multiple taxes, you pay a fixed monthly fee that covers everything

NOT FOR EVERYONE Monotributo is available for small taxpayers, such as freelancers, independent professionals, small merchants and owners of small businesses who do not exceed certain annual billing limits

That is why people talk about Monotributo categories: they are maximum amounts of money you can invoice in a year Depending on how much you invoice, you'll be in one category or another, and you'll have to pay a certain amount of money as tax.

If you work on your own and want to invoice legally, access health insurance, and make contributions toward your retirement, monotributo is for you. It is a simple and convenient way to keep your tax obligations in order.

What changed with the approval of the Bases Law?

Among the main new features is the increase in billing thresholds and in the monthly fee to be paid. Depending on the category, the billing amounts increase from 301% to 401%

These changes are especially relevant this month, since as of July the second annual recategorization opens, allowing monotributistas to adjust their tax situation according to the new parameters

Monotributo 2024: what the new categories are like

• Category A: $6.45 million

• Category B: $9.45 million

• Category C: $13.25 million

• Category D: $16.45 million

• Category E: $19.35 million

• Category F: $24.25 million

• Category G: $29 million

• Category H: $44 million

• Category I: $49.25 million

• Category J: $56.4 million

• Category K: $68 million

These new limits affect both the sale of movable goods and leases and service provision, since with the enactment of this law the unification of the parameters for categorization and remaining in monotributo for all types of activities was also approved.

This last point is very useful for those who work freelance for the exterior, because they can reach up to category K. Likewise, considering that the limits are expressed in pesos by AFIP, we remind this type of workers that they must take into account the official dollar exchange rate to calculate the category they belong to

Monotributo 2024 table: what the new brackets are likeNow, with the update of the billing limits comes, consequently, the update of the integrated tax fee to be paid monthly, for which the aforementioned unification does not apply. Thus, the following amounts were set:

Lastly, among the many other changes implied by the approval of the Bases Law, it is important to mention that the exemption from Gross Receipts Tax is removed for certain small taxpayers in the first 2 categories, except for promoted independent workers.

Simple Tax gave us this information, its platform makes the experience of complying with the tax duties of small taxpayers simple and accessible through an app with the support of licensed accountants in the economic sciences councils. Download it free here and get the first month free for being a belo user by using the code “BELOFF”.

Monotributo 2024 Recategorization: how it is done and until when there is time

The Federal Administration of Public Revenue (AFIP) announced that the monotributo recategorization service is now available. This parameter evaluation must be carried out twice a year, in January and in July, by those who are in this regime, to verify whether they remain in the same category. On this occasion, the process can be completed until Friday August 2. It is a free and mandatory process, consisting of the following steps:

• Enter the Monotributo web portal with CUIT and tax password. Another alternative is to access through the official AFIP site, with the CUIT and tax password and by searching for “Monotributo”.

• Select the “Recategorize me” option. The system will show the data that AFIP has about the taxpayer's situation, such as the current category and the limits for each parameter in that bracket.

• Click “Continue recategorization”.

• Report the new parameters (income, area affected by the activity, electricity consumption, etc.). You must indicate the amount invoiced in the last 12 months.

• With these data, the system will determine the corresponding new category. Select “confirm category” and print the new credential.