Monotributistas relief, subsidies and tax package: is it enough?

A few days passed since the Preventive and Compulsory Social Isolation was decreed and Concern about the general drop in income for all strata of society closely follows the fear of the coronavirus pandemic.

The government did not allow the quarantine to proceed without observing the problem and took measures to try to minimize its consequences for those who have the least, but for the low, middle and middle income, and especially companies, there were very few initiatives.

Those measures taken by the Government can be summarized in subsidies and direct allocations, suspension of embargoes and precautionary measures, and fair fair and the AFIP. The big question is whether maturities will be postponed and whether the current Moratorium will be extended.

Ezequiel Passarelli, from SCI Consultora Integral Tributaria, summarized as follows the government’s economic and tax initiatives, “those that are being taken, those that are expected and those that, apparently, are not in the portfolio.”

Direct grants and allocations

-Emergency Family Income: a fixed amount of $ 10,000 and applies to unemployed people, those who work in the economy, the monotributistas of the two lowest categories (“A” and “B”), the social monotributistas and employees of private homes.

-Extraordinary subsidy of up to $ 3000 that will be paid in April to retirees and pensioners who receive a single benefit, which will make them reach a maximum credit of up to $ 18,891.49.

-In the same vein, the extraordinary subsidy that was also granted to the beneficiaries of the Universal Child and Pregnancy Allowances for Social Protection.

-Extraordinary salary supplement that would be granted to health workers, up to $ 30,000.

“It is a very different range of situations and objectives pursued“Passarelli commented, adding that” it is a more than important effort by a deficit state and practically in default, but, unfortunately, it is insufficient. “

“First, from the universe that it encompasses, with the obvious criticism of excluding, in the case of the formal ones, the rest of the Monotributistas (categories” C “onwards) and also the self-employed workers,” he assured.

And secondly, he pointed out that the measures are insufficient “for the amount itself, which, although it is tremendously valued in the economic context in which we have had to go through this pandemic, considering the price of products, rents, services, etc., seems difficult to reach. Above all, a family, “he emphasized.

Tax extensions without interest and extension of terms of the Moratoriums in force

“Without a doubt, the measures that are expected the most, “said Passarelli, are the postponement of maturities and the extension of the Moratorium, national and from other jurisdictions.

In the case of tax extensions without interest, many countries such as the United States, Spain, Italy and France, among others, have already granted them, and in Argentina, one province, La Rioja, anticipated that it will also do so, although with a scope limited to the sectors most affected by the pandemic.

“The economic context of the country is really very complex. SMEs came very badly, several years ago. But the State, in deficit, without credit and, now, without collection, needs resources to face the high expenses it has and it will come. Therefore, without a doubt, the situation is very complex, “acknowledged Passarelli.

“However, the uncertainty itself is very damaging to the system. Here, I think, there is room for great criticism. Although it is very difficult to know how long the pandemic will last, the isolation and, ultimately, the standstill of the economy, there are to bring certainty to the market. We must protect SMEs and job generators. We must bring them tools as soon as possible, “he stressed.

Suspension of embargoes and precautionary measures

The AFIP extended the period in which SMEs will not be seized from their bank accounts until April 30.

But this only applies to national taxes (VAT, Earnings, Sicore, Export Duties, among others) and does not apply to provincial taxes (Gross Income, Stamps, etc.), given that the respective provinces have not done the same, Passarelli warned. .

At this point, many speak of a “de facto extension” of national taxes, precisely because, if they are not paid, at least until April 30, they would not suffer measures of this type that are extremely serious in the operation of the company, he explained.

“Obviously you have to think about the serious consequences that non-payment of certain taxes or regimes can have in a timely manner., such as cases of fraud, by not paying the AFIP withholdings and payments made or even in the case of contributions from workers in a dependency relationship. All these situations have very severe penalties, even criminal ones. Therefore, extreme care must be taken, trying to survive, “he stressed.

And, on the other hand, he also warned “the obvious question that interests will equally apply.” In the remainder of March, at 3.6% and 4.41% per month, in the case of compensatory and punitive. And, as of April, it would drop below 3% per month, considering that the AFIP interest rate is now variable, by quarter, depending on the Banco de la Nación’s rates for time deposits.

Judicial and administrative fair

The AFIP, ARBA and AGIP have issued their respective rules leading to the non-computation of the deadlines. This implies that, if one had to comply with a requirement, is under inspection or has to comply with some procedure, at least, until March 31, They will be considered non-working days, therefore, there is no expiration.

Passarelli recalled that this is not an extension in terms of the maturities of the taxes, whose terms continue to be met in the normal way.

“But it is very important so that the work of the professionals, of the studies, of the companies’ administrations, at least, can be reduced in this sense, during the Isolation. It is little. But it is something,” he concluded.

Tax reductions and social charges

Economy Minister Martín Guzmán announced at a press conference that various items (cinema, theater, tourism, hotels, restaurants and passenger transport) would have a significant reduction in social charges, as a result of being extremely affected by the pandemic.

As of today, this reduction has not been regulated, but it has been done for one item: health. For 90 days, the rates applicable to the Social Security employer contribution regime will decrease by 95%, remaining at 0.9% or 1.02%, when they are normally 18% or 20.40%, depending on the case.

The law differentiates, with a higher rate (20.40%), the private sector companies whose main activity falls within the “Services” or “Commerce” sector and their total annual sales exceed the limits as Medium-Sized Company in Section 2.

On the other hand, a great surprise has also emerged, which had not been announced by the Guzmán, regarding the check tax, since it was reduced by 58.33% for the credit tax and from 16.67 % for tax on debits.

The “normal” rate is 6 per thousand and thus was reduced to 2.5 per thousand and 5 per thousand, respectively, also for 90 days.

In short, the reduction would be 37.50%, if we consider the total rate of 1.2%, against one of 0.75%, Passarelli summarized.

“Thus, we already have a first case to take as a beacon for what we hope will be the reductions in the rest of the items announced, but not yet regulated,” he enthused.

The state also runs out of income

For his part, Marcelo D. Rodríguez, from MR Consultores, considered that “the limited measures adopted by the Executive Branch are an eloquent example of the lack of resources that the State has to face the difficult situation the economy is going through as a result of of the coronavirus pandemic. “

“Small, medium and large companies are waiting for announcements from the national, provincial and municipal collection agencies (AFIP, AGIP, ARBA, etc.), in line with the measures that the tax authorities have adopted in other countries of the world, “said Rodríguez.

But he was “not optimistic about the possibility that these measures are going to arrive”, given that tax collection is going to drop significantly due to the retraction of economic activity.

“The treasuries, which had already suffered declines in their income before quarantine, will suffer a new and noticeable reduction in their resources, and thus they have no margin today for forgiveness or for postponement in the payment of taxes, fees and contributions” he admitted.

“Companies do not sell, and therefore do not charge, which is why they must make the decision between affecting their scarce financial resources to pay taxes or allocating them to pay staff salaries and to cover the basic services of their providers, “Rodríguez said.

And he assured that this diagnosis is the one that each company should carry out, projecting the scenario for at least the next 120 days, and not only until the end of the quarantine.

The example that comes from abroad is to postpone taxes

What is happening in other countries? Tax payments are postponed massively.

Accountant Nicolás Rubiolo, from the studio of the same name, commented that The United States recently postponed to July 15 the annual income tax filings.

Italy suspended the payment of all kinds of taxes until March 31 and that of employer contributions until April 30.

Spain for its part, postponed for 6 months the settlement and payment of VAT, but only without interest if it is paid within the first 3 months.

“Most of the countries, in the last 3 days, published a series of measures in response to this atypical situation,” said Rubiolo.

In the United Kingdom, Austria, Denmark, the Netherlands, Bolivia, the Dominican Republic, South Africa, Norway, Canada, Portugal, Saudi Arabia, Serbia, Costa Rica, Croatia, Luxembourg, Bulgaria, Switzerland, Sweden, Poland, Australia, France, Japan, Malaysia and Greece also postponed tax payment dates and other measures, all similar to each other, Rubiolo listed.

China, for its part, postponed these days the dates of payment of tax obligations, including withholding agents and also, exempt from VAT on certain activities in the consumer sector

Those companies whose activity is related to the production and research of items related to the pandemic, can deduct 100% of the investment in equipment to expand production capacity, in the Asian country that is going to sell us respirators.

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