Tax measures taken by the Tax Administration in the framework of the Emergency Law

On April 1 2020, the Tax Administration (SET) issued RG No. 49/20, providing the following measures:

–     Tax liabilities with initial due date from March 21 to 26, 2020, were deferred to May 4, 5 and 6, 2020, respectively.

–     Iracis and Iragro liabilities corresponding to the year ended on December 31, 2019, with initial due date April 2020, were deferred to June 2020.

–     VAT, Presumptive tax on corporate income (IRE), Maquila, General Excise (ISC) and Fuels Taxes, and the ISC Report on tobacco products with March 2020 as “normal” due date, are deferred to the month of May 2020. Same due date is set for the liability regarding of Price Adjustments Declaration for February 2020.

  • Therefore, for the moment being, just liabilities with due date in April were extended for one month, and there is no general suspension or an extension for the obligations that expire in May and subsequent months. It is possible that the Tax Administration would provide for additional deferrals.
  • EGDURs (dividend generating entities) that have the obligation to hold shareholders meetings and have decided to distribute dividends in 2020, may generate the IDU withholding receipt between August 1 and 31, 2020, and this way pay their taxes only in September 2020.
  • However, EGDURs that effectively pay or remit dividends before August 1, 2020, must issue the withholding receipt in the month in which they make the payment or distribution and pay the tax on the 13th of the following month.
  • The Informative Affidavit – EGDUR 2019 must be filed by the eleventh month following the end of the fiscal year
  • The above implies that those entities that have no obligation to hold shareholders meetings (such as SRL, consortia, branches of foreign entities), must decide during the month of April whether or not to distribute the profits for the year ended on December 31, 2019, and formalize before a notary in case they decide not to do so, under penalty of applying the presumption of profit distribution set in the third paragraph of art. 44 of Law No. 6380/19
  • Advances 2, 3 and 4 of the IRE, are deferred to September, November and December, respectively
  • Also, the SET by RG No. 48/20 extended the validity of the measures set through RG No. 43/20 to April 12, 2020, including the suspension of administrative deadlines, consequently:
  • Customer services at PACs will continue to be suspended until April 12, 2020.
  • Measures related to i) registration or updating of RUC data, ii) cancellation of RUC, iii) attention to queries, iv) execution of bank guarantees and other procedures, should be carried out electronically.

Taxpayers requiring urgent procedures must submit their files by sending the relevant notes and documents by email at the email addresses included in the resolution according to the type of procedure and their jurisdiction, mentioning the Taxpayer’s name or company name, RUC, step reference and other usually required.

  • At the end of the term set by these measures, the SET will notify the taxpayer so that within five days, physical documentation corresponding to any of the steps taken regarding the RUC, as well as for registration of biometric data, must be submitted.

The SET is analyzing other tax measures in the framework of the Emergency Law. If this is the case, we will inform you accordingly.