August, a month with several deadlines

Despite the extension of the Federal Revenue Administration (AFIP) for filing tax returns for personal and personal income in fiscal year 2017, taxpayers and their tax advisers have in mind in the fiscal calendar

Is in August the first advance of human persons earnings and personal property is paid in respect of taxes of fiscal year 2018. In In many cases, taxpayers still resolve the income (cash or payment plan, depending on financial availability) of the 2017 sworn statement balance; and must already consider the payment of the first advance (can not be included in the payment plans) which expires next month and involves a significant financial impact on the companies.

That is why it is essential to have a correct tax planning of these advances and to enter the payment in a timely manner to avoid interest and, in some cases, a greater default, tax seizures and subsequent bank repossessions.

To better understand the concept, the objective sought by the cash through the advance payment is to collect in advance the tax that must be paid in fiscal year 2018 which will expire at the mid -2019, so that the taxpayer when paying the outstanding balance, can calculate each of these payments on the account. Therefore, if taxpayers maintain their level of taxable income from one year to the next, advances may supplement the total balance of tax payable in sworn states. The problem of advances arises when there are substantial changes in income levels from one year to the next and the tax burden is reduced, which will produce a surplus balance in favor. To avoid this situation, there is the remedy of reducing advances.

Here are some common questions that will help the reader to understand this tax obligation:

1- According to the extension, what is the deadline for the presentation of profits and personal property fiscal year 2017

(a) Natural persons:

The new installments will depend on the end of the taxpayer's CUIT, according to the following table:

(b) Persons Legal:

There were no extension, the deadlines take place in the fifth month after the end of the fiscal year

2- What are the advances?

Taxpayers who pay income tax and personal badets, they must enter tax amounts corresponding to the fiscal year for which the advances are settled . In other words, advances calculated and deposited after the expiry of the affidavit of the previous fiscal year (2017) will be paid in respect of the tax that will be determined during the fiscal year. 2018. It does not involve additional income tax; it is an advance (down payment), which will be used in favor, against the determination of the balance to be paid in the period for which the advance has been calculated. However, from a financial point of view, the impact can be very negative on taxpayers' finances, since they make the payment on income that may not have been realized. In other words, it is calculated on an alleged basis

3- Who should deposit the advances?

They must be entered by both human beings and legal persons.

4- How many advances should I enter? When do expirations work?

(a) Legal persons:

You must register 10 consecutive monthly advances. The first of them expires the month immediately following the expiry of the affidavit. That is, if a company closed its fiscal year on 31/12/2017, the first expiry date is June 2018 and the last in March 2019

b) Natural persons:

It must enter 5 advances that operate in August, October and December 2018; and in February and April 2019.

5- How are they calculated? Is there a minimum ?

The amount of each advance will be determined according to the following scheme (example of the closing of the fiscal year 31-12-2017):

Calculation of the Advanced Base. The tax determined for the 2017 fiscal year will be subtracted:

* Deductions and / or collections received during the 2017 fiscal year.

* The tax on liquid fuels contained in the purchases of gas oil of the 2017,

* Payment on account of badogous taxes paid outside of 2017.

* Payment to the 2017 Minute Income Tax Account.

Calculation of the 39, advance to pay. On the basis of the calculation obtained above, it will be applied to the calculation of the advance according to the percentages detailed below:

a) Legal Entities: (it will correspond to enter, when the amount of the amount of advance is equal to or greater than $ 500) [19659002] First advance: 25% of the value of the basis of calculation

For the other nine: 8.33% of the base value of calculation.

b) Human persons: it will correspond to enter, when each advance the

All the advances: 20% of the value of the base of computation

6- Should I execute a procedure to compute and deposit in advance? [19659002] No procedure should be performed. Once calculated, you must enter the amount of advance via a VEP (electronic payment voucher). It should be noted that once the affidavit of the previous year submitted (example 2017), the AFIP system performs the automatic calculation of advances and generates the corresponding positions for the current fiscal year ( example 2018). This is so because, in the 2017 affidavit, it contains, in a discriminatory form, each concept applicable to the calculation of the 2018 advances.

7- Can the advances be offset by advances ?

Yes, it can be offset by the free availability balance of other national taxes, for example, VAT, profits or personal badets.

In addition, the taxpayer may use the benefit of the tax payment to debits and credits contained in the taxpayer's bank accounts. To do this, you must enter the service with the VAT code of the AFIP "System of Tax Accounts", option "Transactions", "Use of Special Credits", select the original "Tax on debits and credits in the current account "and choose the month the bank has collected the debit and credit tax in the format" yyyymmdd "(example: 20180700). Once the previous step is complete, the "Destination Tax" field will be activated, where the tax will be recorded for which the credit, period and amount will be applied.

The tax on debits and bank credits Law 25413, can be calculated for the years beginning on 01/01/2018, a% of the total collected by the bank, according to the situation of each taxpayer:

1) Micro and small enterprises: 100% of the tax on debits and credits (with PyME certificate in force).

2) Medium-sized enterprises in Section I (manufacturing industry): 60% of the tax on debits and credits (with SME certificate) Valid).

3) Other corporations: 33% of the tax on debits and credits.

8- Is there an automatic reduction for the 2018 fiscal year?

fiscal year 2018 there are benefits that involve a reduction in the tax burden, since the amounts of personal deductions have been changed for persons, and art 90 of income tax, and the minimum non-taxable and aliquot on personal property; Advance revenues if they are calculated in 2017 without considering such changes, can generate the proceeds of excess advances. This is why the system of tax accounts automatically recalculates future advances by human persons, significantly reducing their amount. In the case of corporations, we have the peculiarity that the tax reform has resulted in a decline in the tax rate on profits of 35% to 30% for the years beginning 01/01/2018, Reducing the burden projected tax, it will also be necessary to recalculate the advance.

Unlike people, the system does not do it automatically. However, the taxpayer may request the reduction of the advances of the RG (AFIP) 4034-2017

9- In the case where the automatic reduction is insufficient. Can the taxpayer request an early reduction?

When the persons responsible for depositing advances consider that the amount to be paid in this concept will exceed the final amount of the obligation for the fiscal year to which they are charged, they may opt to perform down payments on a lower amount, depending on the estimate they make, according to the RG Advance Reduction Procedure (AFIP) 4034-2017. The option referred to in the preceding article may be exercised from the third advance for Human Persons and companies from the fifth advance, inclusive. However, the option can be exercised from the first advance when it is considered that the total amount to be paid in this concept will exceed, by more than 40%, the estimated amount of the obligation to the exercise to which it is attributable. The taxpayer must have at the disposal of the treasury the working documents and the documentation which supports properly and without cracking the new calculation.

10- Do employees and retirees who pay benefits have to make advances? [19659002] These taxpayers, if they find that the taxable income that is the subject of their employment or pension relationship, the pension and the person holding the retainer correctly selected the taxpayer. the tax; they will not be obliged to deposit advances as the deductions made during the year in question have been made definitively and absolutely.