On June 5, 2020, Resolution No. 4734/2020 of the Argentine Tax Authority (the “AFIP” after its acronym in Spanish) was published in the Official Gazette by means of which it regulates the reduction and postponement of employer contributions for the month of May 2020 and creates a Facility Regime for the payment of deferred contributions.
1. Postponement of employers’ contributions
In accordance with Resolutions No. 4693/2020 and No. 4711/2020, by Resolution 4734/2020, the AFIP regulates the postponement of the deadline for the payment of employer contributions to the Argentine Integrated Social Security System (the “SIPA”, after its acronym in Spanish) corresponding to the period accrued in May 2020, according to the following schedule:
| Termination of CUIT | Date |
| 0, 1, 2 y 3 | 08/12/2020 |
| 4, 5 and 6 | 08/13/2020 |
| 7, 8 and 9 | 08/14/2020 |
This postponement is aimed at employers whose main activity is included in the list of activities published on the AFIP official website, and who are not granted the benefit of reduced contributions.
In addition, Resolution 4734 creates a Payment Facility Regime, for the cancellation of postponed employer contributions to the SIPA.
2. Payment Facility Regime
2.1 Nature
It consists of a financing plan for contributions to the SIPA corresponding to the months of March, April and/or May 2020, whose payment deadlines have been postponed.
2.2 Employers affected
Employers who have obtained the benefit of deferral of contributions to the SIPA for the months of March, April or May 2020 may access to this program.
2.3 Access time period
The time period to adhere to the Facility Regime depend on the contributions on which the employer would have obtained postponement.
- Contributions accrued in March 2020: from June 9 to July 31, 2020.
- Contributions accrued in April 2020: from July 1 to August 31, 2020.
- Contributions accrued in May 2020: from August 1 to September 30, 2020.
2.3. Requirements and formalities for accession
To qualify for the payment facilities plan, employers must:
- Have an electronic tax domicile.
- Have previously submitted the affidavits determining the obligations of the social security resources by fiscal period and establishment to regularize.
- Declare in the “CBU Declaration” service, the Uniform Bank Code (CBU after its acronym in Spanish) of the checking or savings bank account from which the corresponding amounts will be debited for the cancellation of each of the installments.
- To have validity in the period to regularize the characterization with the code “460 Benefit Dto. 332/2020 Postponement of contributions payment" in the "Registry System".
2.4 Financing of postponed contributions
- The payment of postponed contributions may be financed in up to 8 equal and consecutive monthly installments.
- The first installment will be discounted on the 16th day of the month following the enrollment and will bear all financial interests from the day the plan is consolidated until the deadline.
- Subsequent fees will expire on the 16th of each month and will be canceled, like the first one, through the direct debit procedure in the bank account.
- The amount of each of the installments will be equal to or greater than ONE THOUSAND ARGENTINE PESOS (ARS 1,000).
- The financing rate will be calculated based on the Monthly Effective Rate equivalent to the Annual Nominal Rate (TNA after its acronym in Spanish) electronic channel -for clients that fit in the second paragraph of point 1.11.1. of the rules on "Term Deposits and Investments" (Argentine Central Bank) - for fixed term deposits in Argentine pesos in the Argentine National Bank at ONE HUNDRED EIGHTY (180) days, effective on the 20th of the month immediately prior to the consolidation of the plan, plus a ONE PERCENT (1%) annual nominal.
2.5 Additional notes
- It is possible to cancel the fees in advance.
- The plan does not condone interest or penalties for non-compliance in payments of withholdings and contributions.
- The plan will expire in the event of non-payment of two installments, consecutive or alternate, and provided that SIXTY (60) calendar days have elapsed after the expiration date of the second installment. It will also produce the expiration the lack of payment of the unpaid fee to SIXTY (60) calendar days counted from the expiration date of the last plan fee.
- Once expired, the AFIP will be empowered to order the initiation of legal actions for the collection of the total amount owed by issuing the respective bill of debt
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.