COVID-19 | Legal Analysis Center
January 15th, 2021
Original Version March 30th, 2020
*Updates added in January 15th, 2021 are in colour blue
In the framework of the implemented Decree of the National Executive Power No. 297/20, which established the so-called “Social, preventive and compulsory isolation”, and of its amending and complementary regulations, the Federal Administration of Public Revenue (“Administración Federal de Ingresos Públicos”, hereinafter, “AFIP”, as per its Spanish acronym) has issued different regulations on tax and customs matters, whose impact we analyze below:
1. The essential activities and services according to AFIP
The AFIP, through Provision No. 80/20, has established that the control and fiscalization actions related to resources collection in customs, taxes and social security matters, as well as the actions of control and fiscalization of people, goods and means of transport in the field of foreign trade, must be considered essential activities and services in the context of the current emergency.
The measure, thus, seeks to guarantee the compliance of the essential control and fiscalization functions assigned to the AFIP, as the entity in charge of executing the Nation’s tax and customs policy, guidelines which will be exercised through the Tax Administration (“Dirección General Impositiva”, hereinafter, “DGI”, as per its Spanish acronym) and the Customs Administration (hereinafter, “DGA”, as per its Spanish acronym), within the framework of their respective competences, affecting to this end the minimum and indispensable personnel required.
We highlight that, through Provision No. 106/20, the AFIP has limited the scope of Provision No. 80/20 only to those places affected by the “Social, preventive and compulsory isolation”. Additionally, it has established that in those places under the new “Mandatory Precautionary Social Distancing regime”, the Tax Administration and the Customs Administration must adopt, progressively, the actions and protocols necessary to carry out AFIP’s own activities.
2. Foreign trade transactions: Which of them are allowed and which are not?
As a consequence of the enactment of Decree No. 297/20 and Disposition No. 80/20, the DGA has established, through General Instruction No. 2/20, which are the import and export transactions that may be carried out during the social, preventive and compulsory isolation.
In this regard, it has been established that the customs officers will attend as a priority those transactions and/or import or export destinations related to the activities and services declared essential by Decree No. 297/2020, as amended by Administrative Decision No. 429/20, which expanded the list of activities and services considered essential.
Therefore, the essential activities and services to which customs transactions and/or destinations could be related, according to the statement sent by AFIP to the Center for Customs Brokers of the Argentine Republic, are, among others, the following:
- Health activity, security forces, armed forces, migratory activity, national meteorological service, firefighters and air traffic control.
- Audiovisual, radio and graphic communication services.
- Public works.
- Wholesale and retail supermarkets and proximity retail stores.
- Industries that integrate the value chain and supplies of the productive sectors of food and beverages, personal hygiene and cleaning, medical equipment, medicines, vaccines and other sanitary supplies.
- Activities related to agricultural, livestock and fishing production, distribution and commercialization.
- Telecommunication services, fixed and mobile internet and digital services activities.
- Maintenance of basic services, such as water, electricity, gas, communications, etc., and emergency attention services.
- Public passenger transportation services, transportation of goods, oil, fuels and LPG.
- Postal and packages distribution services.
- Operation and maintenance of Oil and Gas Fields, oil and gas treatment and / or refining plants, transportation and distribution of electrical energy, liquid fuels, oil and gas, fuel dispensing stations and electric power generators.
- Activities of S.E. Bureau of Engraving and Printing, ATM services, transportation of money flows and all those activities that the Central Bank of the Argentine Republic consider indispensable to guarantee the proper functioning of the payment system.
- Industries that carry out continuous processes whose interruption would involve structural damage to production lines and/or equipment authorized by the Ministry of Industry, Knowledge Economy and External Commercial Management, so as not to discontinue their production.
- Production and distribution of biofuels.
- Activities authorized by the National Stock Commission.
- Maintenance of activities related to the mining environmental protection.
- Tanneries, with a minimum endowment, for the reception of leather originated at the refrigeration activity.
The complete list of essential activities to which customs transactions and/or destinations could be related, according to the terms of General Instruction No. 2/20, is available for consultation at: http://www.cda.org.ar/pdf_articulos/e931a3798d9162d2cc6e972805594fb3.pdf
In spite of the priority attention of the aforementioned transactions, the DGA has established that the General Subdirectors of the DGA, within the scope of their respective competences, can authorize the consideration of other transactions and/or destinations, both import and export, that due to the nature of the goods or the particularities of the basic commercial transaction, advise their attention as deemed critical or essential.
On the basis of these considerations, it will be at the discretion of each competent area of the DGA to determine whether or not to authorize the customs transaction whose attention the importer or exporter alleges as critical or essential, circumstances that will be necessary to prove in each particular case.
We understand, therefore, that within the framework of discretion granted by this regulation, the criterion that the competent areas of the DGA will apply will be a restrictive one, since the purpose of the measure seems to be the priority attention of transactions related to the activities and services declared essential in the emergency, as well as the affectation of the minimum and indispensable customs officers in the operational tasks, in order to preserve their health.
We emphasize that the aforementioned regulations will remain valid as long as the health threat and risk addressed in the decrees issued by the National Executive Power subsist, in relation to the spread of COVID-19.
Beyond the two cases mentioned in General Instruction 2/20, we understand that the DGA will not authorize import or export transactions, at least under the current conditions of sanitary emergency.
We highlight that, through complementary regulations of Decree No. 297/20, the list of activities and services declared essential in the emergency has been extended. The complete list of essential activities will be available for consultation at https://www.nicholsonycano.com.ar/eng/mandatory-precautionary-social-isolation-regime-and-exceptions/ 
Regarding foreign trade transactions, according to Administrative Decision No. 450/20, the activities related to exports of finished products and essential imports for the performance of the economy were specifically included.
Additionally, through Administrative Decision No. 524/20, the production for exports and specific industrial processes were included among the essential activities, in both cases, with the prior authorization of the Ministry of Productive Development, and provided such activities are performed in the provinces of La Pampa, Neuquén, Formosa, Santa Cruz, Corrientes, Tierra del Fuego, Antártida e Islas del Atlántico Sur, Salta, San Juan, Córdoba, Jujuy, La Rioja, Chubut, Catamarca, Río Negro, Entre Ríos, Mendoza, Santa Fe, Chaco, Buenos Aires, San Luis y Misiones and the City of Buenos Aires. Through Administrative Decision No. 607/20, the performing of such activities in the province of Tucumán was also authorized. For the development of such activities, each jurisdiction shall issue the necessary regulations.
The Ministry of Productive Development, through Resolution No. 179/20, has established the conditions that the production for exports and the specific industrial processes must comply with in order to be considered authorized. This, notwithstanding the criterion that each jurisdiction must determine based on the epidemiological situation in the respective regions and according to the local regulations that must be issued for the development of such activities.
We highlight that, in a new stage of the “Social, preventive and compulsory distancing”, the National Executive Power, through Decree No. 1033/20, has extended until 01/31/21 the validity of Decree No. 297/20 and its amending and complementary regulations for certain areas of the country and, accordingly, it has established the activities and services that will be considered essential during the emergency. Additionally, it has established the activities that will be considered excluded from the “Social, preventive and compulsory isolation”, provided the employer guarantees the transfer of employees without the use of public transport. The complete list of the activities and services will be available for consultation at https://www.nicholsonycano.com.ar/eng/mandatory-precautionary-social-isolation-regime-and-exceptions/
Regarding foreign trade transactions, Decree No. 576/20 has established that urgent activities related to foreign trade must be considered essential activities and services in the context of the current emergency. Additionally, it has established that the production for exports, with the prior authorization of the Ministry of Productive Development, is excluded from the social isolation, provided the restriction in the use of public transport is complied with.
As this regards, the Ministry of Productive Development, through Resolution No. 326/20, has established the list of companies who may produce for export and will be excluded from the “Social, preventive and compulsory isolation”, as well as the requirements that exporting companies not included in the Resolution and the suppliers of exporting companies must comply with in order to be authorized to operate.
3. Export permissions for certain medical and health supplies
In order not to affect the health care of the Argentine population within the framework of the spread of COVID-19, the National Executive Power established, through Decree No. 317/20, that exports of products such as ethyl and gel alcohol, paracetamol, surgery and disposable gloves, disinfectant detergents for medical equipment and floors, and protective garments used in surgery and medicine, among others, must obtain an export permit before the Ministry of Productive Development, with the intervention of the Ministry of Health.
The complete list of the affected products, with their corresponding tariff positions, as amended by Decree No. 405/20, may be consulted at: Click here
We emphasize that the measure does not affect exports destined to the Special Customs Area of Tierra del Fuego Island, created by Law No. 19.640, nor to the General Customs Territory, when the export is made from a free trade zone of the country.
The Ministry of Productive Development, through Resolution N° 140/20, has established the procedure to obtain the export permit, which will be valid for a period of 30 days and shall be filed before the DGA before the export.
The measure will remain valid during the period of the health emergency.
4. Exception to the submission, in original, of Preferential Certificates of Origin (“Certificados de Origen Preferenciales”)
In order to satisfy operational requirements in matters of foreign trade in the context of the health emergency due to the spread of COVID-19, the Subsecretary of Commercial Policy and Management of the Ministry of Productive Development, through Note NO-2020-19119901-APN-SSPYGC#MDP, has communicated the DGA its decision to accept, exceptionally, the Certificates of Origin issued within the framework of the Preferential Agreements signed by our country be filed to the customs officers after being transmitted to an argentine importer electronically, either in pdf file, image or other similar format. The submission of Certificates of Origin, in original, will not be required.
This exception will remain in effect until the Subsecretary notifies that it will no longer be applicable, which is estimated not to occur until the health emergency is overcome.
We highlight that the measure has been communicated to the operational and control areas of the DGA by Electronic Mail No. 30/2020 (DI TECN) of the Technical Direction of the DGA dated 03/27/2020.
Additionally, we emphasize that the measure has been made official by the AFIP through Circular No. 2/20, which establishes that: (i) the submission of Preferential Certificates of Origin, in original, will not be required temporarily; (ii) Preferential Certificates of Origin which had been electronically transmitted to the argentine importer will be accepted temporarily; and (iii) the measure will remain valid until -otherwise- it is notified by the Subsecretary of Commercial Policy and Management.
5. The term to access the regularization regime of customs, tax and social security debts established by Law No. 27.541 of Economic Emergency is extended.
The regularization regime of tax, social security and customs debts, for all taxpayers, including legal persons has been extended, allowing adherence until 12/15/2020. Likewise, the AFIP, through Resolution 4873/2020, ordered the extension to 1/16/2021 to pay the first installment of the plans presented between 12/1/2020 and 12/15/2020. In the case of those taxpayers who adhered to the plan as “Conditional” for not having the MiPyME certificate, they must, within a period of 15 days, reformulate the plan. In these cases, the first installment will expire on the 16th day of the month after the reformulation of the plan.
6. 0% import duties for certain medical and health supplies, which will also be exempt from statistical tax
In order to guarantee the Argentine population the access to certain critical supplies within the framework of the spread of COVID-19, the National Executive Power, through Decree No. 333/20, has established import duties at a rate of 0% for products such as ethyl and gel alcohol, desinfectant for medical equipment and floors, surgery gloves, disposable hats, surgical masks, ultrasonic scanning apparatus and clinical thermometers, among others.
Additionally, import transactions related to the goods specified in the Decree will be exempt from statistical rate.
The complete list of the affected products, with their corresponding tariff codes, as amended by Decree No. 455/20, may be consulted at: Click here
Additionally, through General Resolution No. 4696/20, the AFIP has established that the products included in Decree No. 333/20, and/or in its future amending or complementary regulations, will be exempt from the Value Added Tax (VAT) Withholding regime (VAT Withholding Tax), for a period of 60 days.
7. Mining industry: impact of the health emergency on the procedures related to the Mining Investment Law
The Secretary of Mining of the Ministry of Productive Development, through Resolution No. 23/20, has suspended until 05/24/2020 the term within which the Mining Investment Direction has to decide the procedures related to the Mining Investment Law (Law 24,196).
Additionally, the Secretary has extended until 05/24/2020 the suspension of on-site attention for all procedures related to the application of the Mining Investment Law (Law 24,196) carried out before the Mining Investment Direction.
All electronic procedures will remain available at the Remote Procedure Platform (Spanish acronym ‘TAD’) (https://tramitesadistancia.gob.ar).
We highlight that through Resolution No. 15/20, the Secretary of Mining has established that the Certificate of Import under the Mining Investment Regime (article 21 of Law 24,196) (“Certificado de Autorización de Importación- Régimen de Inversiones Mineras (art. 21 de la Ley 24.196)”), initiated through the Remote Procedure Platform (Spanish acronym ‘TAD’), will be issued through a digitally signed document through the Electronic Document Management System (Spanish acronym ‘GDE’), with the prior intervention of the Undersecretariat for Commercial Policy and Management. Consequently, the issue of the certificate by any other means is suspended.
8. Temporary exception to the submission of the Product Composition Affidavit (“Declaración Jurada de Composición de Productos”, Spanish acronym “DJCP”) for certain medical and health supplies
The Secretary of Domestic Trade, through Resolution No. 107/20 as amended by Resolution No. 149/20, has temporarily excluded certain medical and health supplies from the requirement of submitting the Product Composition Affidavit (“Declaración Jurada de Composición de Productos”, Spanish acronym “DJCP”) (e.g. surgical masks, disposable hats, overalls and other protective garments used in surgery).
The tariff codes included in the Resolution are the following: 6210.10.00, 6307.90.10, 6307.90.90 and 6505.00.22.
The measure will applies from 04/03/2020 and will be applicable until 10/01/2020. The validity of the measure, may be extended if necessary.
Additionally, through Resolution No. 149/20, the labeling of surgical masks and face masks is suspended until 10/01/2020.
9. Temporary exception to the registration of biometric data for digital transactions
Through General Resolution No. 4848/20, the AFIP has temporarily released taxpayers from the obligation of registering their biometric data (photo, signature, fingerprints and ID scan) before the Dependencies in which they are registered, in order to carry out certain digital transactions that require the registration of such data. The exemption will be applicable until 01/31/2021, according to the extension set forth by General Resolution No. 4886/20. The possibility to reset the taxpayer´s tax code through an ATM and the possibility of proving the quality of attorney or representative of a natural or legal person were also extended.
We highlight that the registration of biometric data is one of the requirements for the registration in the AFIP Tax Registry, which is the general registration institute that contains the data necessary to identify natural and legal persons in customs, tax and social security matters. Likewise, it constitutes one of the requirements for the registration in the Special Customs Registers, formed by foreign trade operators.
10. Reinstatement of export reference values
In order to protect tax income due to the public emergency, the AFIP, through General Resolution No. 4710/20, has established the procedure to establish export reference values, regarding any of the goods included in the MERCOSUR Common Nomenclature (Spanish acronym “NCM”). Additionally, it delegates to the DGA the power to issue general resolutions determining the reference values.
Thus, General Resolution No. 4710/20 abrogates AFIP General Resolution N ° 4161/17, which had voided any ruling establishing export reference values for not adapting to the dynamics of the variation of the export market prices.
11. Export duties on hydrocarbons. Import prohibition
In the framework of the economic and health emergency, the National Executive Power, through Decree No. 488/2020, has established a new scheme for the application of export duties on hydrocarbons, which will range from 0% to 8% taking into account the international price of the crude oil (Brent).
Thus, for those goods whose tariff codes are included in Annex I of the Decree, the scheme will be the following: (i) the tax rate of export duties will be 0% when the international price is equal to or less than the base value (“valor base”) of USD 45 per barrel set forth by the Decree; (ii) the tax rate of export duties will be 8% when the international price is equal to or higher than the reference value (“valor de referencia”) of USD 60 per barrel, also set forth by the Decree; and (iii) the tax rate of export duties will be determined according to the following formula when the international price is above the base value of USD 45 per barrel and below the reference value of USD 60 per barrel:
The complete list of the affected products, with their corresponding tariff codes, may be consulted here
Additionally, the Decree establishes that, until 12/31/20, integrated oil and gas companies, refining companies and those dedicated to the commercialization may not carry out import operations of those products which are available in the local market and/or for which there is effective processing capacity.
12. Suspension of operational terms related to customs matters
In the framework of the economic and health emergency, the AFIP, through General Resolution No. 4726/20, has suspended certain operational terms related to customs matters during the validity of Decree No. 298/20 and its amending regulations, which had provided the suspension of terms within the administrative procedures regulated by the National Law of Administrative Procedures No. 19,549, by the Decree of the National Law of Administrative Procedures (Decree 1759/72) and by other special procedures.
The measure includes the suspension of terms related to import and export temporary destinations, among other cases.
The DGA, through Note No. 102/20, has established certain procedural guidelines related to the suspension of terms provided by General Resolution No. 4726/20.
13. Deferral of export duties payments for Small and Medium- Sized Companies (“MiPyMEs”)
The AFIP, through General Resolution No. 4862/20, has established that, until 12/31/20, those exporters registered in the Register of Small and Medium- Sized Companies (Spanish acronym “MiPyMEs”) who fail to comply with their tax and / or social security obligations may defer the payment of export by using the guarantee “Exporter’s Affidavit” under the terms of Annex II, section II of General Resolution No. 3885/16, which was only available for compliant exporters.
14. Dumping – Digital presentations and requests
The Ministry of Productive Development, through Resolution No. 77/2020, has established that, during the “social, preventive and compulsory isolation” established by Decree No. 297 and its amending regulations, interested parties in dumping or subsidies investigations must file their presentations and answer requests electronically, through the official website of the Ministry (https://www.argentina.gob.ar/produccion/ table-tickets-aspo / form-paperwork) and/or the email address email@example.com.
15. Customs guarantees
Through General Resolution No. 4773/20, the AFIP extended until October 31, 2020, the validity of the solvency accreditation by importers, exporters and trade and customs auxiliaries, which originally expired on July 31. As of October 31, the solvency will automatically expire.
16. Employment relationship
Through the General Resolution No. 4686/20 the Tax Authorities has extended until 04/30/20 the possibility of employees, among others, to file the SIRADIG F572 Web, through which it is informed to its employers the deductions and moonlighting jobs regarding year 2019. Although it is not mandatory, we encourage as a best practice, that companies communicate their corresponding employees of this extension.
Similarly, the Tax Authorities extended until 07/03/20 the deadline for employers to file the annual tax return for the corresponding year, withholding or paying back any difference at the time that the first following payment is made after that date, and subsequent if necessary, until 08/10/20, inclusive. Likewise, the aforementioned amount must be reported and deposited until the due dates established for the filing of the affidavit and payment of the resulting balance that operate in the first fortnight of July 2020 of the SICORE, and recording as withholding date the 07/03/2020.
It is established that the final or informative liquidation due to the termination of the employment relationship, or changes of the withholding agent whose filling should have been made in the months of January, February, March, April and May 2020, may be submitted until 06/30/2020.
17. Online filings to avoid on-site attention at Dependencies.
AFIP, by means of General Resolutions N ° 4886/20, enabled an exceptional and mandatory use of electronic filings, until the 1/12/2021, through the service called “Digital Presentations” to carry out certain procedures and transactions that used to be perform personally, such as: (i) Certificate of exclusion of VAT withholding – RG No. 2.226, (ii) Certificate of exemption from income tax – RG No. 2.681, (iii) Certificate of free pension debt – Law No. 13,899, (iv) Certificate of release of income tax – RG No. 830, (v) Certificate of VAT recovery, (vi) Certificate of fiscal residence, (vii) Refund of freely available balance amounts – RG No. 2.224 , (viii) Presentation of recursive writings – Art. 74 Decree No. 1.397/79, (ix) Presentation F. 885 – Modification register and discharge of employees – RG No. 2.988, etc.
Although the situations provided by the regulation provide a wide and diverse catalog, in the event that companies must execute any specific procedure not included in the list provided by the AFIP, we suggest contacting the Dependency in which the taxpayer is registered, in order to ask about the possibility of completing that particular procedure remotely.
18. Fiscal benefits for health-related establishments and institutions.
It is through Decree 300/20 that the following benefits applicable to employers belonging to health-related services, establishments and institutions (medical care plans, health insurance, hospital services, ambulatory care, diagnosis and treatment practices, emergencies and transfers, etc.) were established as of 03/21/20 and for a period of 90 days:
- 95% reduction of the tax rates corresponding to social security contributions, regarding professionals, technicians, auxiliaries and assistants, thus being reduced to a percentage of 1.02% (in the case their total annual sales exceed the limits for being considered as medium-sized company “2ndsection”, that is, AR$ 607.210.000 for the Services area and AR$ 2,146,810,000 for the Commerce area) and 0.9% if these limits are not exceeded.
- Reduction of Tax on Debits and Credits Bank Accounts to 2.50 ‰ and a decrease of 5 ‰for debits and credits belonging to saving accounts and other operations.
Trough Decree 953/2020, dated 11/30/2020, the benefits indicated in the previous paragraph have been extended until 12/31/20.
19. Fiscal benefits for tourism-related activities.
By means of law 27,563 of reactivation of the national tourist activity, a series of measures have been implemented for a period of 180 days. Among them, we highlight the following:
- The validity of the Work Assistance Program (ATP) until December 31, 2020 for the activities of the sector provided they were paralyzed or had an important decrease in its gross income.
- A Vacational Fiscal Bonus of up to $20,000 per family group, which will be assigned as of January 2021, for families whose total net monthly income does not exceed the equivalent of four minimum wages. This bonus will have a maximum budget allocation of $2,000,000,000 which will be assigned according to the order of presentation of the applications.
- A pre-sale plan to reactivate the local tourism, through the recognition of a credit equivalent to 50% of the amount of each purchase of tourist services to be provided in Argentina.
- The postponement of taxes’ due dates for 180 days.
In turn, the Undersecretary of Tourism and Product Promotion, established through Provision No. 3/2020, that the terms provided for in the incentives regime for the pre-sale of tourist services are extended until November 20 for the purchase of services to travel in January 2021. Likewise, the Undersecretary though Provision 6/2020, has extended the terms until December 6 for trips to be made during the month of February 2021 and between December 7 and 31 for the ones to be made during March 2021.
In addition, the province of Buenos Aires promoted the reactivation of the tourist activity by means of law 15,191, which establishes the following:
- A tax benefit regime that may include forgiveness of tax debts, postponement of provincial taxes, redesign of payment schedule and special regimes for the payment of tax obligations.
- Credit lines coordinated with de Bank of the Province of Buenos Aires.
20. Prohibition to initiate judicial foreclosures or execute precautionary measures
Within the package of the measures taken by the AFIP in order to contemplate the economic situation that the taxpayers are suffering and, especially the circumstances the small and medium-sized companies are going through, the Authorities, by means of General Resolutions No. 4740/20, 4770/20, 4806/20, 4828/20, 4847/20 and 4868/20, decided to suspend the execution of precautionary measures until 12/31/2020. In this sense, it is relevant to recall that the AFIP had established a special regime of payment installment facilities valid for the settlement of tax obligations and social security resources, overdue until the 08/15/2019 –allowing, additionally, to refinance certain current installment plans-. Furthermore, it had established, in addition, the suspension until the 07/31/2020 of the execution of precautionary measures corresponding to MiPymes as well as those taxpayers that qualify as “Micro, Small and Medium Sized companies – Section I and II”, a term that is currently extended.
Moreover, through General Resolution No. 4868/20, the AFIP has suspended the initiation of judicial foreclosures for fiscal debts of any kind until December 31, 2020.
21. The term to access the Permanent Payment Plans is extended – My Facilities
In order to support companies to overcome the economic impact of the health emergency, the AFIP, through the General Resolution No. 4683/2020, extended until 06/30/2020 the transitional period corresponding to the amount of admissible payment plans, installments and interest rates of financing pertinent, regarding the permanent payment facilities plan for the regularization of tax obligations, social security and/or customs liabilities that was originally scheduled until 03/31/2020.
Moreover, according to General Resolutions No. 4714/20, No. 4758 and No. 4768, legal persons who pay income tax may access the Miniplan -RG (AFIP) 4057-E- to regularize tax debts until 09/30/2020, entering a payment on account of 25% and in up to 3 installments, not taking into account the SIPER categorization.
Likewise, according to the provisions of General Resolution No. 4714/20, the Small and Medium- Sized Companies´ (Spanish acronym “Pymes”) VAT obligations with deferred payments may be included in the permanent payment facilities plan.
In addition, through GR No. 4887/2020, the transitory regime that establishes greater benefits when accessing the permanent payment facilities plans is extended until 1/31/2021. Therefore, “Micro, Small and Medium Sized companies – Section I” can access up to a maximum of 10 payment facilities plans, whereas the rest of the taxpayers can access up to a maximum of 6 payment plans.
Finally, through General Resolutions N° 4718/20, 4742/20 and 4802/20, a new Payment Facilities Plan has been created in order to incorporate Payment Facilities Plan which have expired before 4/30/2020. Accession to the plan may take place before September 30, 2020. Main points to take into consideration:
- This plan includes tax, customs, and social security debts (included in the Payment Facilities Plans established by GR 4057-E; GR 4166; and GR 4268), with their respective interests and fines.
- The installments will be monthly, equal, and consecutive, for an amount equal to or greater than $ 1000 and the plan shall not exceed six installments.
- The installments due each 16th or 26th, and will be cancelled by debit in bank account.
- The expiration will operate automatically in the event that the taxpayer did not cancel two consecutive or alternate installments, after 60 running days from the due date.
- Accession to the plan does not imply any discount or liberation in interests or fines.
- The financing rate will be calculated based on the Monthly Effective Rate equivalent to the Annual Nominal Rate (TNA) electronic channel for fixed-term deposits in pesos at the Banco de la Nación Argentina at one hundred and eighty days, effective on the 20th of month immediately preceding the month corresponding to the consolidation of the plan, plus a nominal three percent per year.
22. More measures benefiting small businesses and individuals
In order to ease the burden of the negative impact that the COVID-19 pandemic will have for the small businesses and individuals which are registered as single taxpayers (“monotributistas”), the National Tax Authorities has suspended until 1/4/2021 the exclusions ipso jure, this is, it will not follow the usual systemic controls, which are specifically designed to detect the taxpayers that exceed the established parameters for the different categories of this simplified system. Guided by the exact same spirit, the AFIP has temporarily suspended the discharges due to non-payment, disregarding the register of the months of March, April, May, June, July, August, September, October, November and December for the application of automatic cancellations.
23. Credit and/or debit notes. A new extension.
Due to the current emergency context, the AFIP, through General Resolution No. 4701/2020, has decided to extend -once again- up to 7/01/2020 the date in which the new Credit and/or Debit Note Issuance Regime, implemented by General Resolution No. 4540/2019 is enforceable.
24. The term for the repatriation of assets was extended as well as the advance payment of the personal assets tax
Those taxpayers who have assets abroad and have thought of repatriating a 5% of them to Argentina to enjoy the reduction of the tax rate on personal asset tax, for the fiscal period 2019, will have a deadline to do so until 04/30/2020, as it has been established today by Decree 330/2020.
In accordance to such decision, AFIP – by General Resolution No. 4691/20- has extended the deadline to pay the Personal Assets Tax advance payment until 5/6/2020.
25. Tax Free Reorganization: exceptional deadline for complying with communication to AFIP
In accordance with AFIP General Resolution No. 4700/20, a 90-day period is exceptionally added to the legal 180-day period established to communicate to AFIP the reorganization of companies, goodwill, enterprises, etc.
The additional period is applicable to those reorganizations whose original 180-day period due date operated as from March 20, 2020.
26. Fiscal measures for legal persons at federal level
Through General Resolution No. 4714, the AFIP issued a series of measures to mitigate the impact of the health crisis on legal persons:
- Income tax: the deadline for filing the affidavit and paying the tax corresponding to fiscal year 2019 is extended to May 26 and 27 if the taxpayer´s financial year ends in December 31st.
- Annual Report, Financial Statements and Auditor Reports: the deadline for taxpayers and/or persons responsible for income tax with financial year closings in November 30th2019, December 2019 or January 2020 to comply with the filing of these reports corresponding to FY 2019 is extended up to June August 3018, 2020.
- Value Added Tax: The filing and payment of VAT for the month of April 2020 is extended until 21, 22 or 23 May 2020 (depending on the termination of the taxpayer´s tax code “CUIT”).
27. Fiscal Measures for natural persons
AFIP decides to postpone the deadline for the affidavits filing and payment of the following taxes as follows:
- Income Tax and Personal Assets Tax: the affidavits shall be filled between August 10 and August 12 (depending on the termination of the taxpayer´s code “CUIT”). The payment of the taxes is scheduled for the next business day. The affidavits due on August 10 and 11 will be considered to be submitted on time provided they are filled until 8/12/2020 whereas the payment dates have not been modified.
- Schedular Income Tax: the filling and payment of the affidavits shall take place between August 11 and August 13 (depending on the termination of the taxpayer´s code “CUIT”).
- Informative affidavit of employment relationship and actors: it shall be filled before August 31. Moreover, the threshold from which taxpayers are compelled to file the informative affidavit now increases to $ 2,000,000.
- Withholdings and perceptions (SICORE): The information on withholdings and perceptions made in the month of July 2020, whose expiration dates operated on August 10 and 11, will be considered fulfilled on time provided it is submitted until 8/12/2020. Determinative affidavits of contributions to the social security are included.
In addition, through GR No. 4768, it is established that the Miniplan can be accessed for the payment of the balance of the affidavits corresponding to fiscal year 2019 until 9/30/2020. Taxpayers that access the plan during the month of July 2020 have a month of grace in the payment of the installments.
Moreover, through Law 27,549, professionals who provide services related to the health emergency are exempt from the income tax since 3/1/2020 until 9/30/2020, for the remuneration originated in compulsory guards, overtime and all other concept. Decree N° 788/2020 extended the deadline to 12/31/20.
The exemption includes the work carried out by professionals, technicians, assistants (including those of gastronomy, training and cleaning) and personnel from the public and private health systems; the personnel of the Armed Forces; the Security Forces; of migratory activity; customs activity; firefighters, household waste collectors and pathogenic waste collectors, all of whom provide services related to the health emergency.
28. Buenos Aires City´s Economic and financial crisis Law
The City of Buenos Aires, through Law 6301 declared a state of economic and financial emergency until December 31, 2020 and, within this framework, empowered the Executive Power to:
- Establish subsidies and discounts of up to 30%, with respect to taxes collected by AGIP, in order to encourage the early payment of advance payments due in the second half of FY 2020.
- Recognize a tax credit for those taxpayers who anticipate the payment of taxes, which may be used to pay the turnover tax as of 1/1/2021.
- The advance payment shall be made by taxpayers for a single time within the period of the emergency and may not exceed 3 times the highest tax determined, considering for this the 6 immediate payments in advance prior to the enactment of the law (May 7 2020).
By the means of Decree No. 210/2020 the Executive Power of the City of Buenos Aires regulated the economic and financial emergency law, and stated that the Buenos Aires City Tax Authority (AGIP) will be in charge of establishing the percentage of subsidies/discounts that will be applicable to taxpayers who pay registered taxes in advance, according to law, and the magnitude of the recognition of the tax credit , as well as the terms and conditions for the application of these measures.
Through Resolution N ° 189/2020, the AGIP regulated the Tax Extraordinary Advance Payment as follows:
- The amount to be paid will be the equivalent to the sum of the tax declared in installments 1, 2 and 3 of fiscal year 2020 of the Turnover Tax, before deductions from advance payments on account, withholdings etc..
- The AGIP recognizes as tax credit the 30% of the amount paid as Tax Extraordinary Advance Payment.
- Taxpayers and/or responsible persons shall apply the advance payment, jointly with the tax credit, to the tax payment as of January 1, 2021 and to its obligations as a withholding agent.
- Up to a sixth of the advance payment plus the tax credit recognized per calendar month may be used to cancel the advance payment of the corresponding tax and for the cancellation -total or partial- of its obligations as a withholding agent of the general and particular regimes.
- As of June 2021, there will be no restriction on the computation of the balance of the Extraordinary Tax Advance and the recognized tax credit.
- In the event that the balance generated by the Extraordinary Advance Payment and the tax credit could not be entirely absorbed by the Financial Institutions that act as withholding agents in the System of Withholding and Control of Bank Accreditations (Spanish acronym, “SIRCREB”), it will possible to use it for the cancellation of their obligations as withholding agents of this last Regime.
- Finally, the expiration of the term for the payment of the Extraordinary Advance Payment operates on May 29, 2020.
Finally, the local legislature approved the exemption to the gastronomic sector from the payment of turnover tax between September 2020 and February 2021. By means of Resolution No. 236/2020, the AGIP regulated the law as follows. Taxpayers who carry out the benefited activities, regardless of their category, must complete the application “Exemption Law 6,324”, available on their website as of September 10, 2020 in order to enjoy the exemption.
29. Province of Buenos Aires´ Economic and financial crisis law
The Province of Buenos Aires, through Law 15178, declared, for a period of 180 days, the productive, economic and financial emergency for Micro and Small Companies that are located in the province.
The enforcement authority is empowered to regulate de following::
- Design tax benefits regimes, which may include postponement of due dates and/or payment facilities plans.
- Coordinate with the Bank of the Province of Buenos Aires, credit lines especially intended to support Micro and Small Companies.
- Develop a training program to contribute to the maintenance of Micro and Small Companies, regarding legal, accounting, tax and administrative matters.
Grant subsidies to Micro and Small Companies.
Furthermore, within the framework of the sanitary emergency established by Law 15.174, the Province of Buenos Aires, by means of Decree 1252/2020, exempts certain subjects from the payment of the Turnover tax for the obligations accrued and/or to be accrued from 7/1/20 to 12/31/20. The referred exemption will be of 15%. However, in the case of MiPyMES, an additional exemption percentage of 35% will be granted. Finally, we highlight that certain requirements must be met in order to enjoy the exemption.
30. Suspension of procedural terms.
The National Supreme Court of Justice, through Decision No. 27/20, has suspended procedural terms until 08/03/2020.
The National Tax Court, in turn, by means of Resolution No. 17/20, also extended the “Non-judicial activity period” (“feria extraordinaria”) until 09/20/2020 for all the procedures carried out before such Court. In addition, through Resolutions No. 29/20 and 30/20, the Tax Court has decided to raise the “Non-judicial activity period” only for the files that are processed electronically. We emphasize that the Tax Court is competent to acknowledge regarding the appeals that taxpayers file both against the DGI and the DGA, in the cases expressly established by Law 11.683 and the Customs Code, respectively. Moreover, through Resolution No. 44/2020, the Tax Court has created the Virtual Bureau of Entries for those files still processed on paper. The Virtual Bureau will work through the Remote Procedures Platform (“TAD”). The deadline to establish the corresponding electronic domicile dues in November 11, 2020.
Moreover, through General Resolution No. 4856/20, the Federal Administration of Public Revenue extended the “Non-judicial activity period” (“feria extraordinaria”) until 11/29/2020 for all the administrative procedures currently in progress before the DGA and the DGI. However, as of 9/23/2020, the extraordinary tax fair will be enabled for electronic inspections.
The inspection, administrative summary and determination procedures related to the Transfer Pricing Regime are excepted from the Resolution, as well as the inspection procedures related to the information provided by the Organization for Cooperation and Development.
The complete list of regulations that provide the suspension of judicial and administrative terms is available for consultation at: https://www.nicholsonycano.com.ar/plazos-judiciales-y-administrativos/
31. The City of Buenos Aires tax authorities´ actions to mitigate the consequences of the pandemic:
- Suspension of procedural terms: the suspension has been extended until 08/14/2020.
- Payment Facility Plans: installments due date is extended until 7/31/2020.
- Turnover tax: due dates for the filling of the annual affidavit are established from 8/20/2020 to 8/26/2020.
- Digital services: entering into force of the turnover tax on digital services regime to be applicable by not resident taxpayers is extended until 1/1/2021.
- Real Estate Tax: payment of installment n°4 is postponed until 5/11/2020. Certain commercial shops are exempt from the payment of installments n° 6 and 7.
- ABL: payment of installment n°4 is postponed until 5/11/2020. Certain commercial shops are exempt from the payment of installments n° 6 and 7.
- General Vehicle Patent Tax: payment of installment n°2 is postponed until 5/11/2020.
- Publicity Contribution: tax returns and deposit of sums withheld by withholding agents, corresponding to installment n° 3, is postponed until 5/11/20.
- Precautionary measures: the suspension of the execution of precautionary measures is extended until 11/30/2020.
32. The Province of Buenos Aires tax authorities´ actions to mitigate the consequences of the pandemic:
- Suspension of procedural terms: the suspension has been extended until 8/10/2020.
- Payment Facility Plans: access to the payment facilities plan for Pymes shall take place before 10/31/2020. Cancellation of installments of payment facilities plans due in 10/8/2020, are postponed until 13/10/2020.
- In addition, through NR No. 53/2020 a special regime was created in order to regularize turnover tax and stamp tax debts corresponding to withholding agents originated in unmade withholdings and perceptions.
- Turnover tax: a 50% discount will be applied to Pymes, while 15% off will be applied to the others taxpayers. There are 206 economic activities contemplated.
- Urban Real Estate Tax: payment of installment n°2 will be considered as paid in due time, as long as it takes place until 9/15/2020. The deadlines for payment of installment n°3 are extended, until October 20, 2020;. of installments n°4, until November 17; inclusive; and installment n°5, except vacant, until December 15.
- Complimentary Real State tax: payment of installment n°2 is postponed until 6/12/2020.
- Precautionary measures: the suspension of the execution of precautionary measures on bank accounts is extended until 12/31/2020.
Through the NR No. 62/2020 the Local Tax Authority created a special regime for the regularization of turnover tax, urban real estate tax and tax motor vehicles debts that are not under inspection, determination or either administrative or judicial discussion. Taxpayers with overdue or accrued debts between 03/01/2020 and 12/21/2020, may benefit from this regime.
Moreover, Normative Resolution No. 61/2020 stipulates that debts overdue or accrued as of 8/31/2020 that are not in the process of administrative or judicial enforcement may be included within the permanent regularization regime, as well as all payment plans that expired as of 08/31/2020.
33. Measures taken by the Arbitration Commission of the Multilateral Convention:
- Suspension of procedural terms: the suspension of procedural terms has been lifted (R.G -CA- 13/2020).
- Turnover tax: it has been extended until April 27 and April 30 (depending on the termination of the taxpayer´s code “CUIT”) the due date for the payment of the installment n°3, only if the taxpayers develop their activities in the jurisdictions which adhere to the resolution that establishes the set forth, and given that their income do not exceed $2.500.000 for FY 2019. The obligation to file de annual affidavit CMO5 has been postponed until 6/30/2020.
- New presentations must be submitted through the Virtual Bureau of Entries.
 Through Administrative Decision No. 897/20 of the Chief of Ministers, it was established that the “Unique Enabling Certificates for Circulation – Emergency COVID-19” ” (“Certificados Únicos Habilitantes para Circulación – Emergencia COVID-19”) , implemented by Resolution No. 48/20 of the Ministry of Internal Affairs, with the amendments introduced by Administrative Decision No. 446/20, will expire on 05/30/20 at 12 am, and they must be generated again through the website https://www.argentina.gob.ar/circular. Additionally, it is established that those persons who were exempt from the “Unique Enabling Certificate for Circulation – Emergency COVID-19” (“Certificado Único Habilitante para Circulación – Emergencia COVID-19”) must also obtain and generate it for the purposes of their circulation, also through the website https://www.argentina.gob.ar/circular.
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