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Argentina Issues Rules for the Implementation of the Amended Tax Regularization Scheme — Orbitax Tax News & Alerts

Argentina has published General Resolution 4816/2020 of 15 September 2020, which provides further rules for the implementation of the tax regularization scheme recently expanded by Law No. 27562 to alleviate the effects of the COVID-19 pandemic ({News-2020-09-01/A/2-previous coverage}). Key points include:

  • Qualifying taxpayers are allowed to settle their tax obligations in up to a maximum of 48 to 120 monthly installments depending on the type of taxpayer and the type of tax obligation;
  • The deadline for the first installment is 16 December 2020, with subsequent installments due by the 16th of each month;
  • Interest will apply at a rate of 2% per month for installments due until May 2021, after which the BADLAR rate used by private banks will apply from the installment due in June 2021;
  • Taxpayers taking advantage of the regularization scheme must repatriate a cash equivalent to at least 30% of the value of financial assets held abroad as on the effective date of Law No. 27,562 (26 August 2020), which must be repatriated into ARS or kept in a USD bank account for at least 24 months as from 26 August 2020;
  • Taxpayers taking advantage of the regularization scheme must submit a sworn statement on the partners, shareholders, and/or similar with holdings of at least 30% in the capital stock and/or similar as of the effective date of Law No. 27,562 (26 August 2020); and
  • It is provided that the tax authority will not initiate criminal proceedings in respect of tax liabilities that fall under the criminal tax law if paid under the regularization scheme.

General Resolution 4816/2020 entered into force on 17 September 2020.