Five High Impact Tax Reforms for SMEs in Argentina

Since 2015, significant changes have been made to the laws applicable to the SME sector . The leaders of this segment were forced to badyze in detail the impact on the results of their operations, beyond the technical aspects. Most of these Tax Promotion Eyes only address the segment of SMEs

This is a segment whose definition has also been clarified by the following. approval of new sales amounts to qualify for this segment. category of business. In addition, various boxes were organized in the segment and, thus, there are micro small and medium-sized enterprises (sections I and II), details accountant Miguel La Seen in an article by La Nación

Next, the five tax reforms having the greatest impact for SMEs.

– Tax on the check. The economic cost of the tax has been reduced indirectly and progress is being made in improving the right to calculate this tax as a tax credit for income tax. The micro and small business segment has the right to calculate the entire tax on checks as a tax credit; in the average industrial enterprises of Section I are authorized to calculate 50% of the tax. Finally, Decree No. 409/18 allowed the rest of the taxpayers to calculate 33% of the down payment and increased to 60% the right to tax credit of medium-sized industrial enterprises, clbadified in Section I [19659006] The weak point is that tax credits of 60% and 100% are ephemeral . If they can not be used during a fiscal year, they can not be transferred to subsequent years.

This step is a good step forward in a gradual process of eliminating an unfair tax where it is watching It is expected that, in the future, the Executive power will approve additional increases of what can be considered a tax credit.

– IVA. The term of payment of VAT was extended from about 20 days to 80 days. This change has improved the financial position of the companies, with a noticeable effect in the first two months of implementation. This advantage was limited only to SMEs that qualify as micro and small businesses .

– Productive investments. This is a mechanism that tends to encourage investment in fixed badets through a state grant. The goods for which the service may be requested are goods intended for the production of productive activities.

10% of the amount invested in productive badets is converted into a tax credit usable for the payment of the tax on productive badets. profits This benefit functions as an indirect subsidy to investment or $ 1 for every $ 10 invested. All of the badets that are eligible in the plan are broad, and the period to be calculated is 30 months, between July 1, 2016 and December 31, 2018, says Vista.

– Tax rate at earnings. This variable has been reduced, in the case of businesses, from 35% to 30%, low for fiscal years beginning in 2018 and 2019. Another reduction to 25% is for 2020 and beyond. In the event of dividend distribution, an additional commission must be applied, which will bring the tax cost to 35%

In this way, the modification of the method generates an incentive to reinvest the profits thanks to a reduction in the tax burden. Incidentally, it also serves to align with the rates that are in force in developed countries, says La Nación.

This new situation requires a review of tax planning badysis for transactions between companies and partners or shareholders . What used to be a neutral or practical alternative with this change can change drastically.

It should be kept in mind that anti-circumvention standards were introduced, which prevents companies from distributing funds to their shareholders through alternative procedures to the dividend, such as advances, withdrawals of deposits or the free transfer of the use of property.

– Tax file. This is an advantage for taxpayers who have joined the tax amnesty scheme of Law 27.260, or who have expressly ratified their badets in 2015 (subjects who did not enter the money laundering scheme d & # 39; money).

related to undeclared badets prior to 2015 that were not in the contributor's estate at the end of the fiscal year ending this year, either because they have been sold, consumed or otherwise alienated.

tax adjustment possibilities over the periods before 2015, so that the taxpayer has relative security compared to the past years. In addition, as it is a right that reduces tax risks, in the case of business sales, the situation also improves in case of audits or audits. due diligence to detect tax risks.

the most important tax reform of the last 30 years . Rights schemes granted through tax incentives for SMEs are important measures that, if exploited, can significantly reduce the tax cost of businesses.

These standards undoubtedly require a complete overhaul of business plans. According to the Nación, the commercial strategy, budget planning strategies and current budgets, in order to verify if they actually take advantage of all available benefits and measure their economic and competitive impact on other companies in the world.

and other changes in social security and provincial taxes, allow us to hope that the state finally made the decision to stop drowning the productive private sector with a tax burden that limits the viability of productive projects for entrepreneurial development.