Credits and Debits Tax: Increase of Percentages for Payment on Account and New Exemptions

Through Decree No. 409/2018, the percentages in which the Tax on Credit and Debit in Bank Accounts can be considered as payment on account of Income Tax, the Tax on Minimum Presumed Income, or the Special Contribution on the Capital of the Cooperatives, were increased. Decree No. 463/2018 also incorporates new exemptions related to real estate sale and purchase operations.
 

1. Decree No. 409/2018

Decree No. 409/2018 consists of three articles. The first one amends Section 13 of the annex approved by Decree No. 380/2001, which regulates the way in which amounts paid in relation to the Tax on Credit and Debit in Bank Accounts can be used as payment on account of Income Tax, Tax on the Minimum Presumed Income, or the Special Contribution on the Capital of the Cooperatives.

According to the amendment introduced, the percentages for calculating the Tax on Credits and Debits in Bank Accounts, as payment on account of Income Tax, the Tax on Minimum Presumed Income, or the Special Contribution on the Capital of the Cooperatives are:

• 33% applicable to holders of bank accounts taxed by application of Section 1, Subsection a) of Law No. 25,413 at the tax rate of 6 ‰ (the previous tax rate was 34%).

• 33% applicable to subjects of the Tax on Credit and Debit in Bank Accounts, according to Subsections b) and c) of Section 1 of Law No. 25,413 taxable at the tax rate of 1 ‰ (the previous tax rate was 17%).

• 20% applicable to taxable events affected by a tax rate lower than 6‰ or 12‰ (this is incorporated as the third paragraph of Section 13 of Decree No. 380/2001).

Section 2 of Decree No. 409/2018 increases to 60% the percentage in which the Tax on Credit and Debit in Bank Accounts can be computed as payment on account of the Income Tax for the manufacturing industries considered as "medium-section1", according to Section 1 of Law No. 25,300 and its regulations, referring to those companies with an average sales in the last three fiscal periods that does not exceed ARS 661,200,000 and an average number of personnel employed in the last three fiscal periods that does not exceed 235 people (Please see SEyPME Resolution No. 340/2017).

Finally, Section 3 of Decree No. 409/2018 provides its applicability as of May 8, 2018. The amendments introduced by its Sections 1 and 2 will be applicable to the advance payments and balances of the Income Tax, Tax on Minimum Presumed Income, or the Special Contribution on the Capital of the Cooperatives’ tax return of fiscal periods that begin as of January 1, 2018.
 

2. Decree No. 463/2018

Decree No. 463/2018 also amends the annex approved by Decree No. 380/2001, incorporating new exemptions related to real estate sale and purchase operations.

Section 1 includes as an exemption the taxed operations according to Subsections b) and c) of Section 1 of Law No. 25,413, those revenue of collections of any type of value or document, even with advance of funds, corresponding to cancellation checks or financial payment, applied to the payment of the real estate sale and purchase operations. The subscription of the purchase or equivalent document, which grants possession of the property and any other act by which its ownership is transmitted, located in the country, properly identified and provided that both the drawer of the check and the owner of the account of the beneficiary of the payment are residents in the country may be understood as such.

Section 2 includes as exemption the operations taxed according to Subsections b) and c) of Section 1 of Law No. 25,413, those transfers of funds made by any means that have as origin and/or destination the transfer of title for consideration of property. The subscription of the purchase or equivalent document, which grants possession of the property and any other act by which its ownership is transmitted, located in the country, properly identified and provided that the funds are debited or credited in accounts filed with financial entities included in Law No. 21,526 and its amendments, belonging to residents in the country may be understood as such.

Section 3 of Decree No. 463/2018 incorporates a last Subsection of the first paragraph of Section 10 of the annex approved by Decree No. 380/2001. The debits and credits in bank accounts applied or originated in the transfer of title for consideration of property are exempted of the Tax on Credit and Debit in Bank Accounts. The subscription of the purchase or equivalent document, which grants possession of the property and any other act by which its ownership is transmitted, located in the country, provided that the bank account owners are residents in the country and that the property is duly identified  may be understood as such. The regulation clarifies that those debits and credits arising from the use of checks for cancellation or financial payment, applied or originated in the mentioned operations are included in the exemption.

Finally, Section 4 of Decree No. 463/2018 provides its applicability to the taxable events finalized as of May 17, 2018.