Taxes and quarantine: maturities of concern to taxpayers

The virtual economic stop due to the coronavirus health emergency changed the axis of concern for taxpayers. Tax maturities, both the usual and the extraordinary ones, have gone into the background and the priority today is how the salaries of the employees will be paid.

“Beyond the total isolation on Friday, I have merchant clients who are not in the emergency business (linked to entertainment, transport or tourism), but who have not sold anything in the last few days. No one thought to buy clothes in this moment, for example, “exemplifies Esteban Fada, from Estudio Fada Contadores Públicos.

Mary Acosta, an economist and independent accountant with several small clients agrees and comments that many professionals, such as psychologists, dentists, or kinesiologists, for example, have not worked for days and do not invoice. “For many SMEs, the moratorium has gone into the background,” he says, acknowledging that their own earnings will be affected.

“Not all companies can work remotely because they do not have systems in place. I know of some that cannot invoice. And if they do not invoice, they do not collect or can not pay their dependents,” says Javier Martínez, from the Luis Fadda y Asociados study.

Dina Castillo, head of Estudio Castillo y Asociados notes: “SMEs and self-employed workers are very complicated because if they do not work they do not receive pay. In companies, many analyze to pay salary advances until they reach it. With taxes, each one will do what which can”.

Ongoing obligations

“I am convinced that the Afip is not going to do any extension yet because it needs fundraising and will wait for the companies that can pay to do so. Later, there will probably be some special plan,” says Castillo.

The tax term refers to the usual maturities that are in progress. On Friday the 20th, the monthly fee for the Monotax expired and, despite rumors during the week about measures in this regard, the deadline was not changed. In the first days of April, it is the turn of the self-employed, and they also have expectations.

In addition, from Wednesday the 18th to the 26th of this month the monthly VAT income is expiring.

“People are worried about how to pay, where they are going to get the money from. Many are not having problems today, but they are analyzing whether it is convenient for them to keep the money to pay salaries,” says Marcelo Almendros, a taxpayer from the Industrial Union of Córdoba ( UIC).

Meanwhile, the broad moratorium for SMEs of up to 120 installments with interest forgiveness continues until April 30, but until March 31 the conditions are more beneficial.

The general demand is that the end of the month be extended because most of the taxpayers are not thinking about this and the income requires an initial outlay as payment on account that can complicate in the current situation.

A recurring request in the forums of professionals in the sector is that the moratorium be extended for larger companies, which can also be complicated, cut the chain of payments and spill financial problems to the rest of the companies.

In addition, to allow the incorporation of more recent debts, since the regime only allows obligations due in November 2019 and in these months the problems continued.

“You can enter the moratorium owing subsequent periods. But if a taxpayer did not pay in recent months, it is difficult to recover later,” Fada reasons.

For Castillo, the companies that are indebted should enter the moratorium for their benefits. “If it is not now with 120 installments, it will be in April with 90; but it is an opportunity,” he assures.

Laboral obligations

An issue of general concern is the payment of labor charges, which are due in the second week of April.

The Ministry of Labor issued a resolution to exempt from the payment of employer contributions to the sectors most affected by the first closure (before total isolation since Friday 20), such as hotels, tourism, gastronomy, entertainment.

Health-related activities were also added. However, other items that did not close but did not sell either (such as commerce) did not invoice. Details on this are unknown and a more general measure is expected after the complete stop of the non-essential activity.

“Some measure on contributions is being requested. If there is no reduction or cancellation, at least an extension of the deadlines,” says Almendros.

Martínez warns about some companies that are thinking of not entering the tax withholding money on exports.

“This is very serious because it can generate very strong sanctions,” he remarks.

Personal property

• March 31 also expires the term to repatriate assets from abroad and avoid the aggravated rate of Personal property. For taxpayers it is almost certain that this period will be extended for operational reasons and because there will be little adherence.

“He who today has investments abroad has to sell them to repatriate. Most of them have collapsed in value and if they sell today, they reflect a very large loss that could be cut when the shake passes. This is not a good time to sell, least of all to repatriate “considers Fada.