Welcome to the high-level summary of Covid-19 related actions by the Argentinian Government. The details and links below have been split between “Tax Filings Affected”, “Government Employee Wages Benefits Programs” and “Government Loan and Support Programs”; and are simply extracts from the more detailed information available on the websites of the Argentinian Praxity Participant firms’ websites, links to which are available at the bottom of this page. Praxity Participant Firms in Argentina are Mazars and Shilton Weyers & Asociados.
Tax Filing Affected
- Under the Emergency Assistance to Employment and Production Program (ATP), companies, taxpayers under the single tax scheme and self-employed persons affected by the lockdown may have access to the benefits provided by Executive Order No. 332/20. This includes postponement or reduction of social security contributions paid by employers. The term for payment of employer’s contributions to social security is extended. Payment is reduced up to 95% of such contributions.
- Postponement of due dates and payment of turnover tax advance payment corresponding to March for all taxpayers governed by the Multilateral Agreement whose turnover “throughout the country” did not exceed ARS 2,500,000 in 2019.
- Extension until and including April 30 for filing Form 572 Web, to report on Deductions from Income Tax (SIRADIG) – Employee, corresponding to fiscal year 2019. The term for employers to prepare the annual tax assessment of employees is extended until May 29, 2020 (General Ruling 4686/2020).
- The term for micro, small and medium sized companies to apply for the amnesty provided by Social Solidarity and Production Recover Act is extended until June 30.
- Permanent installment payment plan: The provisional effectiveness as regards the number of installment payment plans, the number of installments and interest rates applicable under the permanent installment payment scheme is extended until June 30, 2020.
- The Executive Power adopted a number of measures targeted to the health sector which include the reduction of social security and tax charges to mitigate the impact of the pandemic. A preferential treatment shall be afforded for a 90- day term to employers related to health activities, including a reduction in employer’s social security contributions in establishments and institutions in respect to professionals, technicians, auxiliaries, and assistants providing service in the sector. In addition, the tax rates applicable for the tax on bank debits and credits is reduced, so as the whole health sector gets the same treatment afforded to obras sociales (union health schemes).
- The AFIP (Argentine Federal Revenue Office) provided tax recess until and including April 26, with the effect of tolling the terms applicable to several tax related proceedings.
- The IOF rate on credit operations for 90 days has been reduced to zero (period between April 3, 2020 and July 3, 2020).
- The extension of the (i) DIRPF delivery term and (ii) the maturity of the first or single quota to 06/30/2020
- Deadline extension for individual Income Tax 2019 - Fillings and payments have been put-off until the end of July.
Government Employee Wages Benefits Programs
Emergency Assistance Program for Work and Production The Emergency Assistance Program for Work and Production consists of the following benefits:
- Postponement or reduction of up to 95% of the payment of employer contributions to the Argentine Integrated Social Security System.
- Compensatory Allocation to the Salary: Allocation paid by the State for all the workers in relation to dependence on the private sector, included in the collective bargaining regime in the terms of Law No. 14,250 (ordered text 2004) and its modifications, for companies with up to 100 workers.
- REPRO Health Emergency Assistance: Non-contributory sum with respect to the Argentine Integrated Social Security System paid by the State for workers in dependence on the private sector, included and included in the collective bargaining regime under the terms of Law No. 14,250 (ordered text 2004) and its modifications in employers that exceed the 100 workers.
- Comprehensive unemployment benefits system: the workers who meet the requirements provided in Laws Nros. 24,013 and 25,371 will receive an economic unemployment benefit in accordance with the considerations stipulated in article 11 of this decree. That Employers and employers achieved by the above benefits must accredit to the FEDERAL ADMINISTRATION OF PUBLIC REVENUE, the payroll of the personnel reached and its impact on the activities achieved.The MINISTRY OF LABOR, EMPLOYMENT AND SOCIAL SECURITY: a) Will consider the information and documentation sent by the company. b) You will be able to reveal additional data that allows expanding and / or verifying those initially provided and requesting the documentation you deem necessary. c) He may arrange to carry out evaluation visits to the establishment's headquarters, in order to ratify and / or rectify conclusions.
The Compensatory Allocation to the Salary will consist of a sum paid by the National Administration Of Social Security for all or part of the workers included in the collective bargaining (Law No. 14,250 (to 2004) and its amendments) in the case of employers of up to 100 workers, and who meet the requirements:
- Economic activities critically affected in the geographical areas where they take place.
- Relevant number of workers infected by COVID 19 or in compulsory isolation or with a work exemption for being in a risk group or family care obligations related to COVID 19.
- Substantial reduction in its sales after March 20, 2020.
- Those who carry out the activities and services declared essential in the health emergency and whose personnel were exempt from compliance with "social, preventive and compulsory isolation" are excluded from the benefits of this decree, in accordance with the provisions of article 6 of Decree No. 297/20 and Administrative Decision No. 429/20 and its possible extensions, as well as all those that, without being expressly stipulated in the aforementioned norms, do not express specific indications that allow inferring a representative decrease in their activity level.
The amount of the allocation will be determined according to the following parameters:
- For employers and employers of up to 25 workers: 100% of the gross salary, with a maximum value of one Minimum Living and Mobile Salary in force.
- For the employers of 26 to 60 workers: 100% of the gross wage, with a maximum value of up to 75% of the Minimum Living Wage and current Mobile.
- For the employers of 61 to 100 workers: 100% of the gross salary, with a maximum value of up to 50% of the Minimum Living and Mobile Wage valid.
This Compensatory Allocation to the Salary will be considered on account of the payment of the remuneration of the affected personnel, and the employers or employers must pay the remaining balance of those until completing them. Said balance shall be considered remuneration for all legal and conventional purposes. When requesting the benefit, the employer must retain the part corresponding to the contributions to the Argentine Integrated Social Security System and social work and the contribution to the NATIONAL INSTITUTE OF SOCIAL SERVICES FOR RETIRED AND PENSIONED (INSSJP). In the event that the employer or the employer suspends the labor benefit, the amount of the allowance will be reduced by 25% and may be considered as part of the non-remunerative benefit defined in the terms of article 223 bis of the Law. of Employment Contract No. 20,744 TO 1976 and its modifications. Emergency Family Income Act It is a $ 10,000 bond that seeks to alleviate the impact of the health emergency on the economy of the most affected Argentine families. It can only be charged by a member of the family group that falls within one of the following frameworks:
- Informal workers
- Monotributistas sociales
- Monotributistas of categories A and B
- Domestic staff
- AUH-AUE recipients or Progresar Requirements:
- Be a native or naturalized Argentine and have lived a minimum of 2 years in the country.
- Be between 18 and 65 years old.
- Have no other income from: Works in dependency relationship, Monotributos of category C or higher, or self-employed, Unemployment benefits. Retirements, pensions or contributory or non-contributory national, provincial, municipal, or Autonomous City of Buenos Aires withdrawals. Social plans, complementary social salary, We Make Future, Promote Work or other national, provincial or municipal social programs.
Universal Child and Pregnancy Allowance The beneficiaries of Universal Child and Pregnancy Allowance are paid a one-time bonus of ARS 3,000 per child to secure another income for the most vulnerable families. The same bonus is paid to retired workers. Other Relief
- Workers in the public, private and social security health system shall be paid bonuses in the amount of ARS 5,000 in April, May, June and July.
- Security and police officers who continue to work every day to secure compliance with the mandatory preventive social distancing shall also be paid a bonus of ARS 5,000 together with their salary for April 2020.
Government Loan and Support Programs
Creation of the Guarantee Fund for Micro, Small and Medium Enterprises The National Government provides for the creation of a Specific Affectation Fund that will have 30 billion pesos that the State will transfer to the Argentine Guarantee Fund. The guarantees granted will have the objective of facilitating the repayment of the loans for working capital, including payments of wages, contributions and employer contributions, and coverage of deferred checks, and will be aimed at those companies registered in the MiPyMES Registry. Mortgage loan facilities: The National Government has resolved to adopt measures that safeguard the right to the House. It is provided that the monthly installment of the mortgage credits that fall on real estate destined for single dwelling and that are occupied may not exceed the amount of the installment as of March of the current year, until September 30. The measure will also apply to UVA credits. Foreclosure, judicial or extrajudicial executions are also suspended throughout the national territory, for the same term and for the same type of housing. For the payment of the difference between the quota that should have been paid according to the contractual prescriptions and the one that effectively must be paid by this measure, and for the payment of debts, no moratorium, compensatory, punitive or other penalties may be applied in contract. Extension of debt maturities for SMEs and Micro SMEs: Understanding that the measures adopted by the National Government due to the pandemic have had an impact not only on the social life of the inhabitants but also on the economy, restricting many of the activities carried out by the subjects reached by the Debt Regularization Regime of Law No. 27,541, it has been resolved to extend until June 30, 2020 including the period for taxpayers to avail themselves of the aforementioned Regime. Government Loans Zero-rate loans of up to ARS 150,000 for single simplified taxpayers and self-employed (Executive Order 376/20) All categories of single simplified taxpayers may apply, from A through K The financing amount may not exceed one fourth of the upper limit of annual gross revenues established for each category under the Single Simplified Tax Scheme, with a maximum limit of one hundred fifty thousand Argentine Pesos (ARS 150,000). Such financing shall be disbursed in three monthly equal consecutive installments. The loan is to be repaid in 12 installments with a six-month grace period. Prime Ministry Loans The Ministry of Production Development shall finance loans at a fixed rate of 12% and non-refundable contributions for companies, micro, small and medium sized companies, cooperatives and R&D institutions contributing to the health emergency. The total credit line allocated to such end is 2 billion Argentine Pesos. Other Measures
- 350 billion Argentine Pesos shall be allocated to securing the production and supply of food and basic supplies, promote business activity and fund its development.
- Electricity, water, natural gas, fixed line and mobile telephone services, internet serves, and cable TV may not be suspended for lack of payment (until three consecutive or alternate invoices) for a term of 180 days.
- Due date for payment of credit cards is postponed (Communiqué A6949 BCRA).
- Banks with corporate payroll accounts shall have to offer loans to SMEs for the payment of salaries at a fixed rate of 24% per year.
- For the import of critical supplies (alcohol, laboratory or pharmacy items, gloves, disinfectant, equipment, and other sanitary supplies) import duties are eliminated and they are exempted from the statistics rate. See a full listing of government measures at the following government link.
Links to Our Member Firms
Further Covid-19 advice
The information contained herein on Covid-19 government measures within the G8, consists solely of information that can be found on the websites of one or more Praxity Participant firms, and has not been written, modified or verified by Praxity, it’s staff, officers or directors.