September 18, 2020
Argentina issues regulations on new tax settlement plan
The new regulations make clarifications and establish the procedure for applying for the tax settlement plan recently approved by the Argentine Congress.
The Argentine Tax Administration (AFIP) issued General Resolution No. 4816/20, clarifying certain provisions of the new tax debt settlement plan and establishing the procedures for taxpayers to follow to apply for the settlement plan. The resolution was published in the Official Gazette on September 16, 2020.
Argentina enacted the tax settlement plan as part of Law 27,562. The plan allows taxpayers to settle their outstanding debts as of July 31, 2020, including national taxes, social security taxes (certain exceptions apply) and certain customs debts. The Law was published in the Official Gazette on August 26, 2020.
For more information on Law 27,562, see Tax Alert 2020-2103.
The resolution establishes that taxpayers must apply for the new tax debt settlement plan on or before October 31, 2020. If approved for the plan, taxpayers may enter into an installment payment plan of up to 120 monthly payments.
The first installment payment is due December 16, 2020, while the subsequent monthly installments are due on the 16th of each month and must be paid through direct debit from a bank account.
The resolution also:
The resolution also establishes the conditions under which taxpayers will be considered as small taxpayers or as micro, small or medium-sized enterprises (MiPyMEs). If a taxpayer qualifies as a small taxpayer or MiPyME, it will not be subject to the prohibition on distributing dividends, paying certain fees to foreign related entities and conducting certain transactions with debt bonds as a condition to apply for the plan. They also will not have to repatriate funds held outside Argentina and will be entitled to access to the most beneficial installment plans.