Extension of the ATP Program: Reopening of Deadlines to Apply for Benefits

On May 12, 2020, the Administrative Decision of the Chief of Cabinet No. 747/2020 was published in the Official Gazette. Following the recommendations of Act No. 9 of the ATP Program Evaluation and Monitoring Committee (the “Committee”), it extended the benefits of the ATP Program provided in Decree No. 332/2020 to salaries and contributions for the month of May 2020. The Administrative Decision covers the Complementary Salary and the postponement and reduction of the payment of employer contributions to the Argentine Integrated Social Security System (the “SIPA” after its acronym in Spanish).

Through this Administrative Decision, the AFIP was recommended to evaluate the cases in which there had been business restructurings in the March-April 2019 to March-April 2020 period and to establish a criterion that allows requests for access to the ATP Program to be resolved based on the economic reality of the taxpayers, considering exceptional situations that could interfere in the appreciation of the decrease in activity.

On May 13, 2020, through Chief of Cabinet Administrative Decision No. 765/2020, the guidelines and requirements to access the complementary salary were established. This standard adopted the recommendations of Act No. 10 of the Committee, and under its rules approved to take as a reference for the calculation of the complementary salary the remuneration paid in the month of March 2020, instead of the February remuneration considered for the complementary salary paid in April.

Pursuant to this Administrative Decision, to estimate the variation in the employers’ billing, a comparison should be made between the April 2019 and April 2020 periods; or with the billing in December 2019 for those companies that started their activities from May 1, 2019. Furthermore, companies created during 2020 would receive the complementary salary directly.

In relation to the rest of it, the Administrative Decision approved applying the rules that the Committee had recommended for the month of April.

On May 14, 2020, AFIP Resolution No. 4716/2020 was published in the Official Gazette, through which the AFIP reopened the registration of employers for the ATP Program, to obtain, if applicable, the benefits’ deferral or reduction of contributions to the SIPA and/or the complementary salary established in Decree No. 332/2020, with respect to salaries and contributions accrued during the month of May 2020.

The deadline to request benefits through the AFIP website will be from May 14 through May 21.