COVID - 19 - Implementation of “Zero Rate Credit”
Implementation of “Zero Rate Credit”
By means of General Resolution (AFIP) No. 4707 published in the Official Gazette on April 30, 2020, a “web” service called “Zero Rate Credit” was created under the framework of the “Emergency Assistance Program to Labor and Production – ATP” implemented by Decree No. 332 dated April 1, 2020, as amended.
In order to access the system, the applicant must have established an Electronic Tax domicile and comply with further requirements and conditions set forth in Decree No. 332/20, as amended, Minutes No. 4, 5 and 6 of the Assessment and Supervision Committee of the Emergency Assistance Program to Labor and Production, attached to the Administrative Decisions of the Chief of the Cabinet of Ministers No. 591/20 and No. 663/20, and Communiqué “A” No. 6993 dated April 24, 2020 of the Argentine Central Bank.
The following individuals/entities (among others) will not be eligible for the benefit: (i) individuals who collect income arising from an employment relationship or from retirement; (ii) individuals who are enrolled in the Simplified Regime for Small Taxpayers and the Self-Employed Workers Regime; (iii) those taxpayers under credit status 3, 4, 5 or 6; (iv) taxpayers under the simplified tax regime (monotributo) during the period between March 12 and April 12, 2020, who did not suffer a reduction under the monthly average of their gross income in the category under which they are enrolled; and (v) self-employed workers who took part in board of directors of companies whose electronic billing during the period between March 20 and April 19, 2020 is lower than that of the same period in 2019.
The beneficiaries shall not have access to the foreign exchange market for the purchase of external assets nor acquire securities in Argentine pesos for their subsequent and immediate sale in foreign currency or custody transfer abroad until the complete cancellation of the credit.
The applicant shall enter to the aforementioned web service from May 4 to May 29. Once the credit is granted by the bank, the latter shall add to each of the disbursement installment the amount equivalent to the tax liabilities of three consecutive fiscal terms and shall pay them on behalf of the taxpayer, together with the disbursement of the credit installment.