Social security contributions are deductible against income arising from employment.
Individuals are allowed to deduct personal expenses (including those of family members) of up to 50% of total income but not more than 1.3 times the exempt portion of the PIT table (USD 11,315 for fiscal year 2020). The total maximum deduction of personal expenses will amount to USD 14,709.50 according to the following general limits and parameters:
|Concept||Exempted portion limit||Maximum deduction (USD)|
Since 2020, individuals earning a net income greater than USD 100,000 cannot deduct their personal expenses for the determination of the taxable base. Notwithstanding, such individuals may deduct health expenses corresponding to catastrophic or rare diseases (dependants inclusive), duly certified by the competent national health authority.
An annual personal allowance of USD 11,315 represents the minimum taxable income in the current progressive PIT table, which means that an individual will pay income tax when one's income exceeds USD 11,315.
Independent professionals are allowed to deduct their social security contributions as well as other business expenses.