Due to the urgent need of the Government to achieve the fiscal goals of the International Monetary Fund (IMF), from the Ministry of Economy, chaired by Sergio Massa, and the Federal Administration of Public Revenues (AFIP) it was implemented through a resolution that, for only once, close to 1% of the companies owed for an advance of the tax to the Profits.
This lien at Profits was decided by resolution because the bill that would allow taxing with a aliquot of 15% to large companies with profits of 1,000 million pesos did not manage to advance in the National Congress, Even with the request of President Alberto Fernández, this was not carried out.
With the implementation of the aforementioned resolution, the AFIP will end the current year with an extra in the collection tax of almost 230,000 million pesos. On Thursday, companies must pay the third installment of this advance to the Profits and from the Government it is expected that the collection will be at least 80,000 million pesos.
The collection is given in three installments, the first of which less than 1% of the companies in the country had to pay was in October and compliance was achieved by 91.5% of the companies contemplated in the tax, with a collection of 72,589 million pesos from 1,247 companies. In the month of November, for its part, compliance with the tax obligation increased to 92.9% and reached 74,298 million pesos through the participation of 1,268 companies.
The Congressional Budget Office (OPC) highlighted the key role of the measure named for collection. In November, this advance tax on Profits contributed 4 percentage points to growth. Also, the OPC asserted that there was an improvement in the labor market and greater economic activity that generated more cases affected by the tax.
What is and how is an advance determined?
Advances are amounts on account of certain tax obligations of a citizen. These are payable until the date of presentation of the respective affidavit. These payments are deducted from the determined amount of the main obligation at the time of maturity.
To determine an advance in capital companies of the amount of the tax determined for the previous fiscal period to which the advances will be allocated, the concepts for individuals and currency successions will be deducted. The net result of the fiscal period prior to the imputation of the advances will be subtracted from the personal deductions that would have been computed in said period, updated by the coefficient that arises from the annual variation of the RIPTE.