JULY 17, 2024

Regulation of the Exceptional Regularization Regime of Tax, Customs, and Social Security Obligations (tax moratorium)

CIRCULARS

Tax Law department report | Regulation of the Exceptional Regularization Regime of Tax, Customs, and Social Security Obligations (tax moratorium)

On July 16, 2024, through General Resolution 5525/2024, the Federal Administration of Public Revenue issued the regulation for the Exceptional Regularization Regime of Tax, Customs, and Social Security Obligations, established by Law 27.743 on Palliative and Relevant Fiscal Measures. This regulation will come into effect on July 17, 2024.

The Resolution, which consists of 47 articles, regulates the procedure for regularizing tax, customs, and social security obligations, including the requirements and modalities for adhering to the Regime, conditions for installment plans, among other topics. The most relevant regulated issues are the following:

– Installment plans

The regulation has established the possibility of implementing installment plans ranging from 36 to 84 installments, with down payments between 15% and 25%, depending on the type of taxpayer involved.

– Adherence Date

Adherence to the regime can be done through:

1-Cash payment (interest forgiveness from 50% to 70%): until October 14, 2024, inclusive.

2-Payment facilitation plans up to 3 monthly installments (interest forgiveness from 50% to 70%): until October 14, 2024, inclusive.

3- Other payment facilitation plans (interest forgiveness from 20% to 40%): until December 13, 2024.

Please note that the percentage of forgiveness of late-payment interest and punitive interest is determined based on the adherence date to this regularization regime and the chosen cancellation method.

– Applicable Interest Rate

The applicable interest rate will vary depending on the type of taxpayer and the moment of adherence to the regime. It is calculated in relation to the rate set by the Banco de la Nación Argentina for commercial discount operations (general portfolio rate), applying from 90% to 100% of this rate for individuals, undivided estates, micro, small, and medium-sized enterprises. For other taxpayers, the rate will be 1.3 times the mentioned rate.

– Early Cancellation

Operational procedures have been regulated for the early cancellation of payment facilitation plans, through which adhered parties can request, once, the early cancellation of the total outstanding debt balance, starting from the month following the due date of the second installment.

Santiago L. Montezanti

Enrique López Rivarola