Regulation of the New Exceptional Regime for the Regularization of Tax, Customs, and Social Security Obligations

Law 27743 on Palliative and Relevant Tax Measures was published in the Official Gazette on July 7, 2024. This Law, under its Title I, established an Exceptional Regime for the Regularization of Tax, Customs, and Social Security Obligations, to achieve the voluntary payment of overdue obligations by March 31, 2024.

This regime gives taxpayers different benefits depending on the type of adhesion and the type of debt they have, providing the pardon of compensatory and/or punitive interests, as well as the release from fines and other penalties, as long as they are not final and have not been paid.

This law was first regulated through Decree 608/2024 (published in the Official Gazette on July 12, 2024). This Decree specified the scope of the extinction of criminal action regarding all participants if the accusation relates to tax obligations included or settled under the Exceptional Regime established by the Law.

The Argentine Tax Authority (AFIP) issued General Resolution 5525/2024 on July 16 and published it in the Official Gazette the same day. This Resolution regulates the Exceptional Regime. Since the effective date is the day after its publication (July 17, 2024), most of deadlines in the Law and the Decree must be calculated from then on.

1. WAYS TO ADHERE 

1. By paying in cash until October 14, 2024. The date of adhesion will determine the percentage of forgiveness of compensatory and punitive interest (70% during the first 30 consecutive days, 60% during the first 60 consecutive days, and 50% during the first 90 consecutive days). The payment can only be made through electronic funds transfer or by generating an Electronic Payment Receipt (Volante Electrónico de Pago or VEP).
2. In payment plans of up to three instalments, which can be made until the first 90 consecutive days. The date of adhesion will determine the percentage of forgiveness of compensatory and punitive interest (as explained above). The financing interest rate (from 0.9 to 1.3 times the rate set by Banco de la Nacion Argentina for commercial discounts) will be determined on the classification of the taxpayer.
3. By adhering to a payment plan of more than three instalments. Taxpayers can request to adhere until December 13, 2024. The date of adhesion will determine the percentage of forgiveness of compensatory and punitive interest (40% until the first 90 consecutive days, 2024, 20% until December 13, 2024).  The financing interest rate (from 0.9 to 1.3 times the rate set by Banco de la Nacion Argentina for commercial discounts), the maximum number of instalments (ranging from 36 to 84), and the percentage of the payment on account (from 15% to 25%) will be determined based on the taxpayer's classification.

2. PAYMENT PLANS

A.  Types of taxpayers:

1. individuals and undivided estates, except those characterized as small taxpayers or classified as Micro and Small Companies,
2.  small taxpayers,
3.  Micro, Small, and Medium Companies—levels 1 and 2—with a valid "MiPyME Certificate" as of the date of adhesion to the regime,
4.  non-profit organizations under legal forms,
5.  other taxpayers.

B.  General characteristics of the payment plans:

1. Instalments will be monthly and consecutive, and in no case will the minimum capital amount be less than ARS 2,000. The payment on account cannot be less than this amount either.
2.  For customs obligations, taxpayers must comply with the procedure established in the microsite “Law 27743 - Exceptional Regulation” before submitting the application.
3.  The confirmation of the payment on account will automatically lead to the filing of the payment plan. If the payment on account is not required, the plan must be filed.
4.  The request for adhesion to the payment plans cannot be amended and will be considered accepted with the acknowledgment of receipt the system issues.
5.  Failure to comply with any of the requirements in Title I of Law 27743 or the Resolution will result in the rejection of the proposed plan at any stage of compliance. The amounts paid cannot be credited as an account payment or as an instalment of payment plans. However, a new application for adhesion can be submitted for the obligations that should have been included.
6.  Instalments will be due on the 16th of each month, starting from the immediately following month of the consolidation of the debt, and will be paid by automatic payment from a bank account.
7. An early full payment of the outstanding debt included in the payment plans can be requested once, starting from the month in which the second instalment is due.
8.  The expiration of the payment plans will operate automatically and without AFIP’s intervening. The causes of expiration depend on the number of instalments the taxpayer chose. However, it is established in all cases that at least one instalment must be unpaid and 60 days must have passed since the due date.
9. Upon expiration, the taxpayer will lose the forgiveness of interest and fines in proportion to the outstanding debt at the time of expiration. Additionally, AFIP is authorized to initiate the corresponding tax enforcement proceedings, and criminal action will be promoted or continue, with the new statute of limitation term starting from the day after the expiration occurred.

 

3. REFINANCING OF EXISTING PAYMENT PLANS

Effective payment plans submitted until March 31, 2024, can be refinanced within the framework of the present Regime. The deadline for refinancing is 90 calendar days from the effective date of the Resolution.

4. CANCELLATION OF THE ADHESION

Taxpayers and/or responsible parties, upon detecting any errors, may request the adhesion cancellation until December 9, 2024. In such a case, the respective request must be substantiated to allow for a new adhesion. However, the amount paid–either in cash, through an account payment, or as an instalment–cannot be credited to another payment plan.

5. SUSPENSION OF CRIMINAL ACTIONS AND INTERRUPTION OF THE STATUTE OF LIMITATIONS

The suspension of ongoing criminal proceedings and the interruption of the statute of limitations will occur on the day of adhesion to the Regime. However, the rejection of the adhesion to the Regime due to non-compliance with the established requirements or its cancellation without a new adhesion will result in the resumption or promotion of criminal actions and the beginning of the prescription period.

AFIP officials are exempt from filing a criminal complaint against taxpayers and/or responsible parties who regularize their outstanding obligations. The same exemption applies to the filing of complaints against those who have settled such obligations before the entry into force of the Law.

6. FORGIVENESS OF INTEREST

The benefit of forgiving compensatory and/or punitive interest will apply:

1. to obligations regularized through adhesion to the Exceptional Regime,
2. to obligations settled before March 31, 2024,
3. to interest converted into capital (fifth paragraph of article 37 of Law 11683), when the original obligation was settled by March 31, 2024,
4. to ordinary and/or extraordinary advance payment or payments on account that became non-enforceable due to the filing of tax returns made before the effective date of this regime.

7. FORGIVENESS OF FINES AND OTHER SANCTIONS
   1. For failure to comply with formal obligations:

The benefit of forgiving fines and other sanctions for failure to comply with formal obligations that can be corrected will apply as long as they are not finalized or paid and the respective formal duty is fulfilled before December 13, 2024. In all other cases of formal fines, they will be forgiven automatically.

1. 2. For failure to comply with substantial obligations:

The benefit of waiving fines and other sanctions corresponding to substantial tax or social security obligations will apply when one of the following conditions is met:

1. the substantial obligation was paid by March 31, 2024, inclusive, provided the sanction was neither finalized nor paid by that date,
2. the substantial obligation and non-forgiven interest were regularized through a payment in cash or a payment plan under the terms of this regime, provided the sanction was neither finalized nor paid by the date of adhesion,
3. the substantial obligation and its corresponding interest were regularized through existing payment plans established before July 17, 2024 (the effective date of Title I of Law 27743), provided the sanction was neither res judicata nor paid by that date.

The regulation also refers to scenarios of forgiveness for customs violations.

8. DEBTORS IN VOLUNTARY BANKRUPTCY OR INSOLVENCY

Subjects in ongoing voluntary bankruptcy or insolvency may adhere to this exceptional regularization regime by meeting several requirements established by the General Resolution in articles 29 to 32.

9. JOINT AND SEVERAL LIABLE PARTIES 

Joint and several liable parties may adhere to this regularization regime, regardless of whether the claim corresponding to the main debtor has been filed against them as joint and several liable parties and even if the main debtor is excluded for any of the reasons provided in article 4 of Law  27743. The obligation to have filed tax returns or determining liquidations will not apply.

If these subjects choose to adhere to the payment plans, the conditions—maximum number of instalments, financing interest rate, and percentage of the payment on account—will be determined based on the type of taxpayer the main debtor is.

10.- DEBTS UNDER ADMINISTRATIVE OR JUDICIAL DISCUSSION

A. Acceptance and/or waiver

If debts under administrative or judicial discussion are included in this Exceptional Regime, taxpayers and/or responsible parties must unconditionally accept and/or waive actions, claims, and pending appeals before the date of adhesion, and renounce all actions and rights–including the reimbursement action–for the concepts and amounts for which adhesion is applied, assuming the payment of costs and expenses. To this end, these subjects must submit the sworn statement form 408/PD.

In cases were the only concepts claimed are those that are forgiven, the tax agent or the intervening administrative judge will declare the process finished.

B. Tax enforcement proceedings

Once debts in ongoing tax enforcement proceedings are fully regularized under this Exceptional Regime, AFIP must request the intervening judge to file away the proceedings. If there are any temporary injunctions, once adherence to the regime is confirmed, AFIP must take measures to lift them. Seizure amounts will generate the forgiveness of interest only if the transfer to collection accounts or payment in kind was made by March 31, 2024, inclusive. The regulation also provides for fees and costs.

11.- EFFECTS OF THE ADHESION

Adhesion to this Exceptional Regime will imply acknowledging the debt included and the interruption of the statute of limitations regarding AFIP’s actions and powers to determine and claim the obligation and its accessories, and to apply and demand the corresponding fines. This will be the case even if adhesion is rejected or if the subsequent expiration of the payment plans occurs. The payment of each plan instalment will have the same effect regarding the outstanding balance.