Interest rate in favor of AFIP: treatment in other countries

By the recent resolution No. 50/2019, The Department of Finance has amended a provision dating back more than 8 years – the last update was in 2010 – from which the countervailing and punitive interest rates are set. provided for the non-payment of the tax and customs obligations of taxpayers.

Before the change, these rates were set at 3% and 4% per month for compensatory and punitive interest, respectively. Their lack of updating has not only neglected the economic situation, but has also created various injustices, making this regime obsolete.

In the new regime, it is established that the monthly interest rate – whose validity will now be quarterly – will be the effective monthly rate equal to 1.2 (compensatory interest) and 1.5 (punitive interest) multiplied by the TNA electronic channel for Banco de la Nacion Argentina's 180-day peso term deposits, commencing on the 20th of the month immediately preceding the beginning of the relevant quarter. The rates will be published on the AFIP website at the beginning of each quarter and will come into effect on April 1st.

Until that happensthey were tentatively set at 4.5% and 5.6% per month for compensatory and punitive interest, respectively.

From the foregoing, it is observed that the The fixed interest rate fixation system is replaced by a floating or floating system. However, beyond the favorable and unfavorable views that such a measure can generate, especially in a context of high reference rates, it is interesting to compare the system used in other countries, particularly in the region. Here are some examples:

Brazil: The cash interest rate is equivalent to the SELIC reference rate (special securities settlement and custody system) for government securities, which is the Bank's benchmark interest rate. economy published by the Monetary Policy Committee of the Central Bank. from Brazil.

Chile: Taxes that are paid in the future must be paid for by considering a "readjustment" component (which results from the application of the percentage change in the CPI) and another of "interest" (the rate of which is fixed). The Chilean fiscal administration publishes every month the table of calculations of readjustments, interests and fines, in order to facilitate the calculation by the taxpayers.

Colombia: According to Colombian legislation, "default interest will be paid daily at the daily interest rate equivalent to the current rate of wear" (which corresponds to 1.5 times the current bank interest) determined by the Financial Superintendency of Colombia for the terms of consumer credit, minus 2 points. The tax is published by the Tax Administration of Colombia on its website.

Uruguay: The rate is monthly – quarterly flexible – and is calculated by increasing by 10% the last quarterly average rate of the market of large and medium-sized enterprises, issued by the Central Bank of Uruguay for current bank credit transactions, in currency agreed without a readjustment clause for durations of less than one year.

Mexico: The interest rate is one that results from a 50% increase in the rate set annually by Congress through the National Finance Act. Similarly, debt amounts are also updated due to price changes.

Spain: The rate is determined taking into account the legal interest of the money in force during the period when it is required (determined annually by the National Finance Law), plus 25%. This, unless the national finance law establishes another.

As you can see The countries listed above have a pattern with some similarities to the one recently adopted by our country.. Indeed, the interest rate accruing to the Treasury is based on certain economic variables defined by the country's central bank, congress or other state agency, to which a certain percentage is added.

In some cases, its modification is fixed annually (for example in the case of Spain), in other cases, the regime is much more dynamic (for example in Colombia). Some countries (eg Chile or Mexico) claim that taxes paid in the future must be adjusted with the help of a price index. This, in addition to the interest that is envisioned for each of the cases.

Discover the latest news in the digital economy, startups, fintech, business innovation and blockchain. CLICK HERE