| ||||
July 24, 2024 Argentina implements the Regularization Regime for Tax, Customs and Social Security Obligations Through General Resolution No. 5,525, published in the Official Gazette on 16 July 2024, the Federal Tax Administration ("AFIP" in Spanish) has established the operational aspects for implementing the Exceptional Regularization Regime of Tax, Customs and Social Security Obligations for tax, customs and social security obligations due through 31 March 2024 ("Moratoria" in Spanish), established in Title I of Law No. 27,743 (Tax Package). For additional background, see EY Global Tax Alert, "Argentina enacts Bases Law and Tax Package," dated 8 July 2024 Concepts included All tax, customs and social security obligations that the AFIP is responsible for collecting through 31 March 2024 may qualify, including those in the course of administrative or judicial discussions, as long as the taxpayer agrees or desists and renounces any recovery actions. Infractions committed up to 31 March 2024, whether or not related to those obligations, may also be included. Further, withholding ("retenciones" in Spanish) and reverse withholding ("percepciones" in Spanish) obligations of collection agents who have neglected to apply withholdings, or have withheld amounts that they have not remitted by the due date, may also be included. Excluded concepts Interest and fines cannot be included for contributions to: the National Health System ("Sistema Nacional de Obras Sociales" in Spanish), the special regime for domestic workers, Labor Risk Insurance Companies ("ART" in Spanish), or Simplified Regime for Small Taxpayers installments ("Monotributo" in Spanish). Bankrupt taxpayers and those prosecuted and/or convicted cannot apply for the regime, in certain cases. Benefits The total cancellation of the debt included in the regime will result in the forgiveness of 100% of the applicable fines, the extinction of the criminal action on those obligations, and the forgiveness of up to 70% of the compensatory and/or punitive interests, depending on the date of application to the regime and the chosen payment method. Application and payment methods Those interested in applying to the regime may do so until 13 December 2024. Depending on the date of the application and the type of taxpayer, different payment methods and benefits are contemplated, as follows:
At the taxpayer's option, payment plans with longer terms are available. Their conditions and benefits vary depending on the date of application to the regime:
If the taxpayer is an individual or a micro, small or medium enterprise ("MiPyME" in Spanish), the prepayment for the cases described in (4) and (5) may be reduced up to 15%, and the payment plans may be extended up to 84 installments, depending on the case. The interest rate for monthly installments will be variable and will be calculated as a percentage of the interest rate established by the Banco de la Nación Argentina for commercial discount operations (general portfolio rate), depending on the type of taxpayer. For legal entities, this percentage will be 130%, although it may be reduced to 90% in the case of MiPyMEs.
| ||||
|