COVID - 19 Tax update

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Tax Updates

Through Decree 300/2020 published in the Official Gazette on March 20, 2020, the National Executive Power ordered that the social security contributions rates will be reduced to 1.02% and 0.9%, respectively, for certain employers belonging to health-related services, establishments and institutions, provided that their annual sales exceed or not limits for the categorization as a medium-sized company, section 2.

Likewise, the reduction of the rates of the tax on bank credits and debits was ordered, to 2.5 per thousand (0.25%) and 5 per thousand (0.5%) for debits and credits in current account and other operations carried out by the employers of the activities and services mentioned above.

These benefits will be applicable for a period of 90 days from the effective date of the regulation, that is, from March 21, 2020.

For its part, through General Resolution (AFIP) 4683/2020, the validity of the transitory modification provided by Annex II of General Resolution (AFIP) 4268/2019, was extended until June 30, 2020, to the number of payment plans, installments, financing interest rate and their maximum amounts, for the regularization of tax and social security obligations, their fines and interest, and fines imposed and supplementary charges for import or export taxes, their settlements and interest.

Finally, by means of General Resolution (AFIP) 4684/2020, the precautionary measures corresponding to MiPyMES as well as those taxpayers that qualify as “Micro, Small and Medium-sized Company - Section I and II”, in the terms of General Resolution No. 4568 and its amendment.