Argentine Tax Authority Introduces Installment Payment Plan

Through General Resolution No. 5361/2023, published in the Official Gazette on May 17, 2023, the Argentine Tax Authority (AFIP) implemented a new payment plan of up to 84 installments to regularize tax, social security, and customs obligations due until April 30, 2023.

The highlights of this regime are:

Which liabilities are included?

1. Tax and social security liabilities –fines and interest included- due until April 30, 2023.
2. Fines imposed, supplementary charges for import or export taxes, and settlements of the aforementioned taxes made up to April 30, 2023, as well as their interests, as provided in the Customs Code.

Some liabilities may not be included, among them social security withholding and perceptions, advance payments and/or payments on account of liabilities, Value Added Tax for services rendered abroad and for digital services, payments to National health Insurance System (Regimen Nacional de Obras Sociales), payments to Labor Risks Insurers (Aseguradoras de Riesgos de Trabajo or ART), and installments of current payment plans.

Does this regime cancel or waive interest or penalties?

This regime does not cancel or waive interest or penalties for taxpayers adhering to it. This regime cannot be used to restructure existing installment payment plans.

Who can adhere to the regime?

All taxpayers may adhere to this regime, except those excluded by the conditions, such as those convicted for any of the crimes in the Criminal Tax Laws No. 23771 and No. 24769, in the Criminal Tax Regime in Law No. 27430 or in the Customs Code, among others.

Small Taxpayers must be registered as such in AFIP’s “Sistema Registral" at the time of adhering to the installment payment plan. Those who haven’t but meet the requirements to be considered such, may prove their condition prior to adhering to the plan by submitting supporting documents.

Micro, Small and Medium Sized Companies -Sections 1 and 2- must have a "MiPyME Certificate" in force as of the date of adhering to the plan and be labeled as such in the “Sistema Registral" in AFIP’s webpage.

Non-profit entities must be registered before AFIP at the time of adhering to the plan under any of the specified legal forms.

What are the types of plans and conditions?

The regime establishes four types of plans:

1. for general debts,
2. for social security contribution debts,
3. for tax withholdings and perceptions debts
4. for customs debts.

The financing interest rate will result from applying 70%, 90% or 100% over the compensatory interest rate -in force as of the date the plan consolidated- in Section 1 of Resolution No. 559/22 of the Ministry of Economy; and it will depend on the type of taxpayer regularizing its debt.

The compensatory interest rate in force at the time of this publication is 5.91%, so the current financing interest rates are 5.91%, 5.32%, and 4.14% respectively.

Installments must be monthly, equal, and consecutive, and the minimum for each will be ARS 2,000.

The maximum number of installments and applicable interest will depend on the type of taxpayer and plan:

1. Small Taxpayers, Non-Profit Entities, and Micro and Small Companies: up to 84 installments for general or customs debt, 36 for social security contributions, and 12 for tax withholdings and perceptions. The interest rate is 70% of the compensatory interest rate.
2. Medium-Sized Companies - Section 1: up to 48 installments for general or customs debt, 24 for social security contributions, and 6 for tax withholdings and perceptions. The interest rate is 90% of the compensatory interest rate.
3. Medium-sized companies - Section 2 and other taxpayers: up to 36 installments for general or customs debt, 18 for social security contributions, and 3 for tax withholdings and perceptions. The interest rate is 100% of the compensatory interest rate.

What is the consequence of not paying the installments?

Not paying a certain number of installments will cause the plan to be terminated. The termination will depend on the type of taxpayer:

1. Non-profit entities, Micro and Small Companies and "Small Taxpayers": three unpaid installments, either consecutive or alternated, after 60 calendar days from the due date of the third installment, or not paying one or two installments after 60 calendar days from the due date of the last installment of the plan.
2. Medium-Sized Companies -Sections 1 and 2 - and other taxpayers: 2 unpaid installments, either consecutive or alternated, after 60 calendar days from the due date of the second installment, or not paying 1 installment after 60 calendar days from the due date of the last installment of the plan.

In these cases, AFIP will be entitled to initiate legal actions to collect the unpaid amounts.

Can those who adhere to the regime make blue chip swap (contado con liquidación) transactions?

The General Resolution clarifies that the acquisition -while the plan is in force- of securities in ARS for selling them in foreign currency later through transfer in custody abroad will imply being ejected from this regime. This transaction is known as blue-chip swap transactions (contado con liquidación).

Although it is not included as a cause for termination, the fact is that the purpose of this is to prevent taxpayers adhering to this regime from carrying out these transactions while the plan is in force.

What is the deadline to adhere to the regime?

The deadline for adhering to the regime is September 29, 2023.