On August 26th, the Law to Extend the Regularization Regime for Tax Obligations to Mitigate the Effects of the COVID-19 Pandemic – Law No. 27.562 – was published in Argentina.
This Law aims at broadening the scope of the Regularization Regime of Tax, Customs and Social Security Obligations.
The main features of the new extended Tax, Customs and Social Security Moratorium Regime are:
Effects / Benefits:
Taxpayers that adhere and comply with the requirements of this Regime, shall be granted the following exemptions and/or pardons:
This new regime introduces the following additional benefits:
1. Small Taxpayers Simplified Regime grants an exemption of the tax component depending on the number of installments chosen, as follows:
a) A and B Categories: six (6) monthly and consecutive installments.
b) C and D Categories: five (5) monthly and consecutive installments.
c) E and F Categories: four (4) monthly and consecutive installments.
d) G and H Categories: three (3) monthly and consecutive installments.
e) I, J and K Categories: two (2) monthly and consecutive installments.
The benefit limit can never exceed an amount equivalent to AR$ 17,500.
2. Income Tax Registered Taxpayers: special deduction, as follows:
f) Individuals and Undivided Estates: entitled to a one-fiscal-year deduction equal to 50% of the amount stated by subsection a) of article 30 of the Income Tax Law. This benefit does not apply to those included in subsections a) – public sector employees -, b) – private sector employees -, and c) – retirement, pensioned – of article 82 of such Law.
g) Those referred by article 53 – corporate profits – that qualify as Micro, and Small Entities: entitled to choose between performing the corresponding depreciation as of the authorization of the asset, in lie with the depreciation general rules, or performing the depreciation in line with the following regime – applicable to investments effectively made until December 31st, 2021:
i) For investments in movable property acquired, elaborated or manufactured: minimum of 2 annual, equal and consecutive installments.
ii) For investments in imported movable property: minimum of 3 annual, equal and consecutive installments.
iii) For infrastructure work investments: minimum of annual, equal and consecutive installments arising from considering their estimated useful life reduced in 50%.
Both benefits shall be applied on the tax returns related to tax periods ended after December 30th, 2020. Further, the abovementioned deductions shall never generate favorable balance nor allow any carryforward. Also, the referred benefits are non-accumulative.