AFIP General Resolutions No. 4815/2020 and No. 4816/2020.
CIRCULAR
Dear Sir or Madam,
We hereby inform you about the following tax news.
AFIP General Resolution No. 4815/2020: new reverse withholding tax applicable over transactions levied by the Tax for an Inclusive and Solidarity Argentina (Impuesto PAIS)
Through General Resolution No. 4815/2020, the Federal Tax Authority (the “AFIP”), established a new reverse withholding tax applicable over transactions levied by the tax for “an inclusive and solidarity Argentina” (Impuesto PAIS), carried out as from September 16th, 2020.
The reverse withholding tax shall apply at a 35% rate over the amount of each transaction, in Argentine pesos.
The withheld amounts shall be computed against Income Tax or Personal Assets Tax, as the case may be. However, those who are not taxpayers of the referred taxes and were subject to such reverse withholdings, shall be able to request the refund of the withheld amounts once the calendar year has ended.
Those appointed to act as reverse withholding agents for the Impuesto PAIS, shall also act as reverse withholding agents in this case.
AFIP General Resolution No. 4816/2020: moratorium − implementing measures
Through General Resolution No. 4816/2020 (the “regulation”), the AFIP regulated the moratorium implemented by Law No. 27,562 (the “moratorium”), which includes outstanding debts as of July 31st, 2020 regarding national taxes and social security taxes (certain exceptions apply) and related interests and fines.
The regulation set forth different categories of taxpayers, as well as the terms and conditions of the available installment plans and the specific procedure to apply for the moratorium.
On the other hand, in connection with the requirement related to the repatriation of at least 30% of the funds obtained from the sale of financial assets outside Argentina (the “repatriation”), the AFIP stated that those repatriated funds can either be entered and liquidated through the Single Free Exchange Market (MULC) or be deposited in a local bank account, held by the owner of such funds –it could be possible to make some investments with such funds–, which must be kept for 24 months as from August 26th, 2020.
Finally, the regulation established that:
1. the AFIP will be released of filing a criminal tax complaint, if the obligations under the moratorium are fully paid.
2. an exchange of information program will be implemented between the AFIP, the Central Bank of the Republic of Argentina and the Argentine Securities Regulator, in order to control the expiration events related to some payments to foreign related parties, the sale of debt bonds in exchange for foreign currency or the transfer of debt bonds to foreign custodian entities and the acquisition of foreign financial assets or transfer of Argentine financial assets.
3. taxpayers must inform to the AFIP, their partners, stockholders and/or similar parties, who own at least the 30% of their share capital and/or similar participation as of August 26th, 2020 and those who must fulfill the repatriation requirement shall inform the total amount of the foreign financial assets owned as of 26th August, 2020 (in this case, a special report issued by an independent registered accountant shall be attached).
The General Resolution will enter into force on September 17th, 2020.
Should you require any further information on this matter, please do not hesitate to contact us.
Sincerely,
Santiago L. Montezanti