Income tax 4° category

1. Pay by employees whose gross salary goes up to $15,000 pesos after all deductions.2. THE TAXED PERCENTAGE CAN’T GO OVER THE 35% OF THE GROSS SALARY3. The employer has the role of retention agency. This means the employer retains the amount

and then pays to the correspondent agency.4. It applies over remunerative and non-remunerative concepts of the salary.

Taxed remunerative concepts: Salary Extra hours Pay national holidays Expenses Bonus Licenses Complementary annual salary Share in profits

Taxed non-remunerative concepts: Prior notice compensation Integration of the dismissal month EOS payroll

Untaxed concepts: Compensation for death, disability, dismissal. Work clothes Payment of courses and other trainings (must be documented) Family allowances

Allowed deductions (only if employee informs the employer) Family charges Donations (up to 5% of the gross salary) Health insurance fees Life insurance (up to 996.23 per year) Domestic work Interests over mortgage loans (up to $20.000 per year) Burial services fees of the taxpayer or family charges Contributions to local professional institutions Taxes over credit and debit of bank accounts

Obligatory deductions: Health insurance contributions (made by employer and by employee) Social security contributions (made by employer and by employee)