Transitional provisions on the bonus for 2021

Today, the Legislative Assembly approved the initiative of the President of the Republic through the Minister of Finance and the Minister of Economy, in the sense of issuing transitional provisions to declare that bonuses up to the sum of US$1,100 be considered as non-taxable income and excluded from the respective withholding applicable to the private sector, civil and military personnel in the service of the Public Administration.

In the event that there are bonuses with amounts greater than US$1,100, only the excess of said sum will be affected by income withholding.

This provision, once in force, will expand the amount of the exempt bonus from the maximum sum of US$720 to the sum of US$1,100 for the benefit of the workers.

This decree must be sanctioned by the president and published in the Official Gazette for it to be in force, which is expected to be done in the coming days.