The nominal rates would rise progressively to 35%. Income tax rate schedule of individuals would go between 0% and 35%.
The reform bill seeks to implement six (6) different brackets according to the monthly income computed in Tax Units (each Tax Unit is approximately USD 10). Under the current law four (4) rates ranging from 0% to 33% are applicable to the four (4) existing brackets.
For individuals belonging to the highest income bracket, which obtain income above 4,000 Tax Units, the tax rate would increase to 35%.
Individuals obtaining income from 2,000 up to 3,000 Tax Units would be subject to taxation at a rate of 30%, while those with income greater than 3000 Tax Units and up to 4000 Tax Units would be subject to a rate of 35%.
Below we include the comparisons between the current rates and the proposed ones:
