Payments and contributions: new version of system. Simultaneous activities for different employers

1. New system

General Resolution No 2252/2007 (the “Resolution”) of the Federal Tax Authority (Administración Federal de Ingresos Públicos – “AFIP”) approved a new version of the system, namely “Integrated Retirement and Pension System - Version 28”, for the registration of payrolls and the entry of payments and contributions allocated to different social security subsystems. A procedure is also provided for workers performing simultaneous activities for different employers and receiving aggregate earnings in excess of the maximum limit of 75 MOPRES.

2. Effective date

As from June 2007, all employers must use the new system to produce affidavits (Form No 931).

However, in the case of employers with any employees earning more than $ 4,800 per month and/or simultaneously performing teaching and non-teaching activities, the system must be used to generate SIJP affidavits as from the period to April 2007. If the employer has already filed the affidavit for April 2007 using the 26^th or 27^th version of the system, they must reissue the affidavit corresponding to the whole payroll using the 28^th version. The filing of the new affidavit, and if applicable, the payment of the pertinent balance to the taxation authorities, shall be effective if it was made by or before May 28, 2007.

The Resolution provides details of the earnings corresponding to teaching and non-teaching activities if the employee performs more than one activity for the same employer and one or more of its duties are within the scope of Decree No 137/2005.

Affidavits related to the determination and payroll registration of social security liabilities, either original or reissued, made using the 28^th or any subsequent version of the “Integrated Retirement and Pension System” may only be filed by means of electronic transfer of data over the Internet onto AFIP’s website.

3. Taxable bases

The maximum taxable bases to be considered pursuant to the provisions of Annex I of the Resolution for the period to April 2007 and subsequent periods are the following:

(i)           Contributions to SIJP (Law No 24,241 as amended): $ 6,000

(ii)           Contributions to the Institute of Social Services for Retirees (Instituto de Servicios Sociales para Jubilados y Pensionados) (Law No 19,032 as amended): $ 4,800

(iii)           Contributions to the National Prepaid Health Care System (Regimen Nacional de Obras Sociales) (Law No 23,660 as amended): $ 4,800

(iv)          Contributions to the National Health Insurance System (Regimen Nacional
del Seguro Social) Law No 23,661 as amended): $ 4,800

(v)           Installment payments under the Workmen’s Compensation Insurance Law (Law No 24,557 as amended): $ 4,800

(vi)          Payment to the National Prepaid Health Care System (Law No 23,660 as amended): $ 4,800

(vii)          Payments to the National Health Insurance System (Law No 23,661 as amended): $ 4,800

(viii)         Payments under Law No 24,241 as amended, Law No 19,032 as amended, Law No 24,714 as amended and Law No 24,013 as amended: no maximum amount.

In the case of simultaneous activities for different employers and to the extent the aggregate earnings exceed the maximum limit of 75 MOPRES, the worker shall, on a monthly basis, inform one or more of his or her employers of the gross earnings amount exempted from the withholding of the SIJP contributions, by note (substantially in the form of the Note contained in Annex III to the Resolution). Likewise, if the employee ceases to perform simultaneous activities, he or she must inform the employer by note (substantially in the form of the Note contained in Annex IV to the Resolution).