Government hurries the 2020 Super Moratorium: details of the official plan

The national government defines a plan of “comprehensive moratorium“that allows both small and large Business start producing and safeguarding post-pandemic employment and analyze the implementation of flexible tools to serve critical and heterogeneous sectors affected by the pandemic such as tourism, entertainment and cultural industries.

Official sources reported that this was part of the agenda that was analyzed in the economic cabinet meeting which was headed by President Alberto Fernández at the Olivos residence, where the measures taken to mitigate the effects of the pandemic were followed up.

On the first day of increasing the restrictions on social isolation in the metropolitan area, the President received the Chief of Staff, Santiago Cafiero, and the Ministers of Economy, Martín Guzmán; of Work, Claudio Moroni; and of Productive Development, Matías Kulfas.

Olivos was also attended by the Deputy Chief of Staff, Cecilia Todesca, and the heads of the Central Bank, Miguel Pesce, and the Federal Administration of Public Revenue (AFIP), Mercedes Marcó del Pont.

The spokesmen of the meeting consulted after the meeting explained that the plan of AFIP comprehensive moratorium, designed with “the objective that companies of all sizes can start producing, taking care of jobs”.

The project that the Executive Branch will send “soon” to Congress For its treatment, it was outlined, understanding the consequences of the pandemic on economic activity, for which “this tool is essential for companies and merchants to continue their production,” the sources stressed.

The work of the economic cabinet in a general moratorium follows the line that the President proposed in mid-June, when he anticipated that the Government is evaluating launching a tax moratorium “for everyone”, once the quarantine is lifted to face the advance of the coronavirus.

Details of the 2020 super moratorium

In the coming days, the “Extended 2020 Moratorium” project will be presented at the National Congress.

From Tributum, Mario Goldman Rota points out that “as a first conclusion, we denote that they have been clearly expressed – with more than, but also with new restrictions – the requests for flexibility from various professional entities, business chambers and articles of doctrine in its nodal aspects; among other: term extension of accession, cut extension and type of obligations to include, drop from interest rate, inclusion of all taxpayers and limitation in the delegation of powers.

Central features of the new moratorium

Non-SME subjects: they are incorporated into the beneficiaries but with differential conditions (lesser amounts of installments, payment on account, grounds for expiration – unpaid installments and patrimonial restrictions -)

Obligations: those 6 months are extended expired on 11/30/2019 by those that occurred on 05/31/2020.

Placement period: extends from 04/30/2020 (then extended to 06/30/2020 by Decree 316/2020) as of 10/31/2020.

First installment payment plan: that variable is replaced depending on the subject, debt and plan, by a single date for all until 11/16/2020.

Forgiveness of interest and fines: harmoniously forgives fines and other penalties for overdue obligations as of 05/31/2020.

Interest rate: it is reduced from 3% to 2% monthly until January 2021 and it is specified that the BADLAR rate is in pesos.

Obligations: debts for the decline of promotional regimes, fuel taxes and gambling are expressly incorporated.

Waivers of interest and fines, and their caps: neither its scope is modified, as well as its percentages. Concordantly, extends the time limits from 11/30/2019 to 05/31/2020 (10% of the capital owed)

Special conditions Large companies or SMEs WITHOUT certificate:

• SUSS contributions, withholdings or tax perceptions and social security: 48 installments (MiPyMEs 60)
• Other obligations: up to 96 installments (MiPyMEs 120)
• Payment on account: it is an essential condition (MSMEs can have payment on account or not)
• Expiration: 4 installments (MiPyMEs 6)

Here is the article-by-article comparison:

Equity restrictions: It is incorporated as a cause of expiration similar to the ATP program (Decree 332/2020 and modif) and of regularization and previous payment plans, only with respect to legal entities: a) non-distribution of profits and dividends for the following 24 months to the current year of adhesion to this and b) purchase of foreign currency for certain operations with no time limit.

MSMEs WITHOUT certificate: conditional membership is removed if they do not obtain the certificate. Its “reformulation” is foreseen in conditions analogous to non-SMEs if it were denied, but with a waiver on the expiration date of the first installment of the plan: 12/16/2020 (otherwise, it would be 11/16/2020)

The fine print of the Super Moratorium AFIP 2020

AFIP litigation: converts to the express compliance of the taxpayer in the discussions with the treasury for the amount of the obligations included in various instances -even the withdrawal of legal actions in progress-, for an “automatic” effect due to the mere fact of acceptance of the present regime of regularization.

Thin powers: it limits the incorporation of other conditions in addition to those provided for in this law and leads to the regulation guaranteeing adherence with respect to all taxpayers (in harmony with the public declarations of the President of the Nation days ago)

Tax criminal: It specifies and broadens the scope of the effects of fostering in a criminal court, by including both the authors and “co-authors and participants in the crime linked to the respective obligations” and even those previously canceled.

Other tools to alleviate the crisis

In this Wednesday’s meeting, data from several critical sectors that see their level of activity very affected by the prevalence of social isolation, such as the tourism sector, entertainment activities and a wide variety of cultural industries, were particularly discussed.

In this regard, official sources assured that “flexible tools began to be defined that allow addressing the heterogeneities that appear according to the sector, the size of the company, and the specific activity“assistance that cannot be arranged yet through the current programs.

The economic cabinet also evaluated with the president the registration for the third stage of the Emergency Assistance Program for Work and Production (ATP), and for which some 240,000 companies have already been registered.

This universe represents a total of 2.3 million workers, although applications are subject to the approval of the sectoral and billing criteria.

The government has already communicated that SMEs or large firms that wish to obtain the benefit of the complementary salary have time to enroll in the AFIP until this Friday, July 3, but anticipated that aid for high salaries and in areas that transit a new normality to concentrate effort in areas with more restricted activities.

Frozen prices

The meeting also extended the 60-day extension of the program Maximum Prices, the one that became official this Wednesday through its publication in the Official Gazette and which reflects “logical accommodations that have to do with raw material costs” in the different production processes.

Through Resolution 200/2020 of the Secretariat of Internal Commerce made official this Wednesday, it was decided to maintain the prices in force until March 6 within the framework of the policies of the national Government aimed at responding to the economic crisis due to the coronavirus pandemic.

The regulation also encourages companies that are an integral part of the production, distribution and marketing chain “to increase their production to the maximum of their installed capacity, and to arbitrate measures to ensure their transport and supply” during this situation. .

Members of the economic cabinet also evaluated the redesign of economic and social support tools in the post-quarantine agenda after this period of isolation.

More credit for companies

At the same time, the study of different lines of credit so that companies they can have access to working capital and resume production levels as demand recovers.

Transfers and aid made to the provinces were also analyzed, because the collection levels, both from the provinces and from the Nation, were greatly affected by the pandemic.

In this context, it was ensured that the Government is analyzing transition measures until production and consumption recover.

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