Regulation of the Tax Reform, New Payment Facilities Plan, and "online affidavit" System

Employer contributions. Regulations of some aspects of the tax reform (Law 27,430) and Decree 814/2001

With Executive Order 759/2018, the Government sets forth some clarifications regarding the application of the minimum non-taxable profit established by Law 27,430.

Please note that, since January 2018 a substruction of $ 12,000 is in force which is to be applied sequentially (currently $ 2,400 monthly), on the calculation base of employer contributions. In this regard, the Executive has set forth the following:

  1. Such minimum non-taxable profit does not apply to additional percentages of contributions contemplated in special or differential welfare regimes.
  2. The Federal Ministry of Labor's Social Security Department must update the amount of the minimum non-taxable profit, pursuant to section 4 of Executive Order 814/01, as amended. Please note that the update shall be carried out according to this schedule: (a) updating $ 12,000 since January 2019 based on the CPI; and (b) broaden its percentage of application based on the following schedule: 20% since January 2018; 40% since January 2019; 60% since January 2020; 80% since January 2021; and finally 100% since January 2022.
  3. In the case that the minimum non-taxable profit should be prorated according to the guidelines of the Law, the following requirements must be met: (a) in the case that it should be prorated due to not having received compensations in the whole month, it must be divided by 30 days for proration; (b) in the case that it should be prorated because a part-time employment contract exists under section 92 ter of the Employment Contract Law (LCT for its acronym in Spanish), the two thirds of the minimum non-taxable profit applicable to full time workers may not be exceeded.
  4. The Executive Branch (pursuant to the powers vested upon it by the Law) has decided to extend the application of the minimum non-taxable profit for any workers that are governed by the Construction Industry Regime (Law 22,250).

New payment facilities plan for tax liabilities and of social security

Through General Disposition No. 4289 (Official Gazette: 3/8/2018); the Federal tax Authority(AFIP for its acronym in Spanish) has regulated a new payment facilities plan applicable to tax liabilities and of social security past due until and including June 30, 2018, as well as its corresponding interest.

The possibility to access to the plan is contemplated until August 31, 2018, in conditions that vary according to the registered fiscal conduct of the taxpayer, the time of accessing to the plan and whether it is a Small and Medium Entity (PyME for its acronym in Spanish) or not.

  1. Down payment At the time of accessing the plan, a down payment of between 5% and 10% of the consolidated total debt must be made.
  2. Number of instalments and finance rate During August and September, plans of up to 48 monthly instalments may be consolidated, with a finance rate of 2% monthly for PyMEs; and 3% for other taxpayers. As from October, such rates will be increased in 3% and 4%, respectively. Additionally, the possibility of including liabilities that had been previously included in the payment plans consolidated until and including June 20, 2018 and that are past due is covered.

Broadening of the scope of companies governed by the System "Online Affidavit"

Through General Disposition No. 4265, AFIP has extended the enforceability of the use of the system "Online Affidavit" in the preparation of affidavits of contributions (form F-931) to those companies that have more than 2,000 employees as from July 2018. August 2018 shall apply to the rest of the employers.

Please note that, regarding the monthly statement of the payment of the social security system contributions, the general regulations for employers set forth two ways of drafting the affidavits: (a) online, by accessing the updated information previously uploaded by the employers in the AFIP server; or (b) by an application named SICOSS.

As from the creation of the online affidavit system, AFIP has been gradually extending its enforceability according to the number of workers. Such process will be discontinued as of August 2018, and the new one will be mandatory for all employers as from September 2018.

The following chart shows the evolution towards the application of the system.

Time Periods Number of Registered Employees
February 2007 to July 2012 Up to ten (10) employees
August 2012 to March 2014 Up to twenty-five (25) employees
April 2014 to March 2015 Up to one hundred (100) employees
April 2015 to April 2016 Up to two hundred (200) employees
May 2016 to July 2017 Up to three hundred (300) employees
August 2017 to November 2017 Up to four hundred (400) employees
December 2017 to June 2018 Up to six hundred (600) employees
July 2018 Up to two thousand (2,000) employees
August 2018 and subsequent months Whichever be the total headcount