Spring 2020 Issue
sector employers will pay an 18 percent rate. The law also establishes a non-taxable base of ARS7,004 ($112), which will be subtracted monthly from each employee’s tax base used for calculating employer contributions. In addition, employers with a payroll of up to 25 employees will benefit from an additional non-taxable base for social security taxes of ARS 10,000 ($159) on the salaries paid. • New tax amnesty programme plan for micro, small and medium enterprises: The law establishes a new regime for settling outstanding tax debts as of November 30, 2019, for micro, small and medium enterprises, including federal taxes, social security taxes (certain exceptions apply) and import and export duties. The law also allows tax liabilities subject to administrative or judicial claims to benefit from this regime and also releases fines and criminal penalties for the regularised infringements. Some sectors have argued the amnesty programme is a good measure to alleviate the economic crisis in which SMEs have been immersed in the last years. However, it would seem to be a paradox that the law which established a remission of penalties for those who have not fulfilled their obligations has also raised and created new taxes. This situation has generated debate on the social cost that the government is willing to take to improve its tax collection.
Author: Sergio Caveggia
In any event, the new measures are necessary to reduce fiscal deficit and to cope with a heavy sovereignty debt situation. The other side of the coin is the impact that the raise of taxes may generate to the overall economy. i ABOUT THE AUTHORS Sergio Caveggia is a tax partner currently in charge of Transaction Tax area in Argentina. He joined EY Argentina in 1994 and has developed expertise over 24 years in international taxation and merger and acquisition matters. He is highly experienced in inbound and outbound investments, buy side, sell side and restructuring services within the International Tax and Transaction area. Caveggia has served in a variety of industries and has also been involved in many due diligence procedures performed in the past 20 years. He has given lectures in national universities and is a frequent speaker in tax seminars. He has also written several articles dealing with Argentina tax issues. He is a Certified Public Accountant who graduated from University of Belgrano in Argentina. He obtained his Tax Specialist’s Degree at the University of Belgrano and has a postgraduate certificate in Business and Management from Universidad Catolica Argentina (UCA). He is also member of the Professional Council of Economic Sciences of Buenos Aires and the Argentina Fiscal Association. CFI.co | Capital Finance International
Author: Jimena Garcia
Jimena Garcia is a Manager currently working in the International Tax and Transaction area in Argentina. She joined EY Argentina in 2014. She has extensive experience in social security & labor law buy-side and sell-side due diligence and has served in numerous companies in different industries. She also participated in the coordination of many cross-border engagements, dealing with foreign labor and social security legislation matters on each transaction. Jimena participates in numerous seminars and trainings related to payroll taxes and labor law matters. Jimena is a Lawyer graduated in 2010 from UNLAM (Universidad de La Matanza). She is enrolled in the Bar Association of the City of Buenos Aires (CPACF). 153