Argentine companies should assess the opportunities presented by the new installment plan regime to settle tax, customs and social security debts.

The Argentine Tax Authorities (AFIP) have established (General Resolution No. 3827/2016) a permanent installment plan regime aimed at settling tax, customs and social security debts.

The regime introduces payment plans ranging from three to 24 monthly installments, depending on the type of debt. Taxpayers entering into an installment plan within the first two months of the regime's entry into force will be subject to a monthly financing rate in Argentine pesos ranging from 1.88% to 2.61%, depending on the different type of debts to be settled and the annual turnover of the taxpayer. Taxpayers entering into an installment plan from the third month onwards will be subject to the monthly interest rate to be published by AFIP on its website. Considering the current inflationary climate, this alternative could be attractive to taxpayers. If the inflationary climate changes, however, the regime allows the installment plans to be cancelled with a cash payment.

The regime may be used to pay tax and social security liabilities, interest and fines that are past due. Additionally, fines or supplementary charges applied by customs authorities for import or export duties, including interest, adjustments and fines, may be included in an installment plan. This regime also may be used to pay any debts arising from tax audit adjustments as long as the taxpayer accepts the tax authorities' claims. Additionally, it may be used to pay any debts subject to administrative or legal claims proceedings, provided the taxpayer drops all actions or gives up any rights over such amounts.

The regime excludes, among other types of payments, tax and social security withholdings and reverse withholdings, tax prepayments and/or payments on account, and the value added tax payable for service imports.

To benefit from this regime, taxpayers must have filed all tax returns for which they are requesting an installment plan by the date of applying for the installment plan. There are additional requirements that must be met.

There is no deadline to apply for this regime. Taxpayers may apply for this regime on the tax authorities' website.

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