The State announced that the Tax Unit (UIT) will have a value of S/4,950 by 2023. Now and until the end of the year, its value is S/4,600.

This increase of S/350 is the highest in recent years, surpassing the year-on-year increase of S/200 between 2021 and 2022.

Said increase is the result of economic inflation since the value of the UIT has a direct impact on how people are taxed for the payment of taxes and how those administered (individuals and companies) are sanctioned.

One of the most important effects of the increase in the UIT is the one it has on the payment of taxes.

Consequences of the Increase of the Tax Tax Unit (UIT)

1. Increase in administrative fines.
2. The minimum amount that a worker must pay monthly to be subject to the fifth category income tax is raised to S/ 34,650 per year.
3. Fourth Category Income Tax rates vary in favor of the worker (see Note).
4. Upper limit of annual income to qualify as a microenterprise rises to S/ 742,500. To qualify as a small business, it rises to S/ 8,415,000.
5. Limit to deductible expenses vary in favor of the taxpayer.
6. Deductions to the Fifth Income Tax (or Fourth and Fifth category together) (Employment Income) rise to S/ 34,650 (7 UIT).
7. Additional deductions for expenses applicable to Work Income Tax rise to S/ 14,850.
8. Calculation of property tax payment rates vary in favor of the administered (see Note).
9. The calculation of the alcabala tax is modified.
10. Legal costs become more expensive since the Procedural Reference Unit is increased to S/ 495. Costs of other procedures before the state also increase.
11. The competence of legal justices of the peace is increased to be able to review controversies for obligations to give (payment) with a value of up to S/ 24,750.
12. Companies that are dedicated to Labor Intermediation and provide complementary services (cleaning, security, surveillance, etc.) and/or temporary services (services) must prove a minimum Social Capital of S/ 222,750.
13. The non-seizable amounts of workers’ salaries are increased. In collection processes, the remuneration of a worker is unseizable for up to S/ 2,475. The excess can be seized.
14. Workers who at the same time receive pressure from the ONP cannot receive more than S/ 2,475 in monthly income.
15. Minimum Annual Comprehensive Remuneration rises to S/ 9,900.

First of all, if the annual remuneration of a person, whether dependent or independent, is less than S/34,650, said taxpayer will not be subject to the payment of income tax (IR), since the first 7 UIT of income are not found attached to the tax. In this sense, the increase of the UIT plays in favor of the workers, as well as their employers.

Progressive rate for workers

Likewise, the progressive rate of the labor income tax (fourth category or self-employed) is affected.

The progressive rate, which goes from an affectation of 8% to 30% depends on how much income a person receives, measured in UIT.

People who have an annual income of up to 5 UIT must pay a tax at a rate of 8%; up to 20 UIT, 14%; up to 35 UIT, 17%; up to 45 UIT, 20%; and, finally, those who generate more than 45 UIT must pay a tax with a rate of 30%.

Now that the UIT is higher, more people will fit into the first groups, reducing the rate to be paid by a group of workers.

Negative effects

As a consequence of the increase in the ITU, all administrative sanctions will also rise.

According to the Vinatea & Toyama Study, labor fines for companies (employers) can amount to up to S/990,000 and, if several accumulate, could reach S/1,485,000 (see table).

The same also occurs in relation to other State auditing entities, such as Sunat.

Likewise, the cost of judicial fees, set by the UIT, will rise, which will make access to justice difficult for a group of the population.

Property tax

Meanwhile, the calculation of property tax varies in favor of the administered.

When the self-assessment of a property reaches 15 UIT, a rate of 0.2% must be paid; Between 15 UIT and 60 UIT, the aliquot rate is 0.6%, and when it exceeds 60 UIT, a 1% aliquot must be paid.

In other words, now more properties would fit within the groups subject to a lower payment.

Source: Management