Postponement and Reduction of Employer Contributions from April 2020

1. Postponement of employer contributions to SIPA

The Argentine Tax Authority (the “AFIP” after its acronym in Spanish) postpones the payment of social security withholdings and contributions, with special treatment given to employer’s contributions to the Argentine Integrated Social Security System (the "SIPA", after its acronym in Spanish).

For clarification purposes, the SIPA is the social security sub-system that governs pension benefits represents 11% as employee withholding and a 12.35% or 10.77% company contribution, depending on its activity.

 

1.1 General postponement

By means of General Resolution No. 4712/2020, the AFIP postpones the due date to file the social security return for April 2020 and make the relevant payments, according to the following schedule:

 

Termination Cuit	Date
0, 1, 2 and 3	05/18/2020
4, 5 and 6	05/19/2020
7, 8 and 9	05/20/2020

* CUIT: corresponds to the tax ID of the employer

 

1.2 Special postponement

General Resolution No. 4711/2020, on the other hand, grants a special treatment to employer’s contributions to the SIPA of April 2020, postponing their payment due date according to the following schedule:

 

Termination Cuit	Date
0, 1, 2 and 3	07/15/2020
4, 5 and 6	07/16/2020
7, 8 and 9	07/17/2020

 

This special postponement is applicable to those employers:

(i) whose activity is included in the list of activities published on the institutional website (http://www.afip.gob.ar), i.e. the list of activities designed by the AFIP under the emergency work assistance program ( the “ATP”after its acronym in Spanish); and

(ii) those who are not covered by the benefit of reduction of employer’s contributions (see item 2 below).

 

Employers who have submitted returns corresponding to March and/or April 2020 without differentiating employers’ contributions to the SIPA from the other contributions have until May 31, 2020 to rectify them. Likewise, if applicable, they must request the re-allocation of the respective payment through the "Tax Accounts System" (“Sistema de Cuentas Tributarias”).

 

2. Reduction of employers’ contributions

The aforementioned Resolution No. 4711/2020 ("GR"), on the other hand, also provides that:

- Those employers granted with this benefit (according to Decree No. 332/2020), whose main activity is included in the list published on the institutional website (http://www.afip.gob.ar) mentioned above must be defined in the "Registration System" with the code "461 - Benefit Decree 332/2020 Reduction of S.S. Contributions”. Said characterization may be consulted by accessing the service with the fiscal code "Sistema Registral", option consultation/registry data/characterizations.

- Once social security contributions are entered, the system will automatically calculate the reduction. Therefore, no other action is required from the employer to make such re-calculation other than the mentioned implementation steps.

Those employers who have submitted the sworn statements of contributions to social security for April 2020, may rectify it until May 31, 2020.