29 August 2017
Tax benefits to promote SMEs
The goverment published law No. 27264 and various regulations related with it during 2016 and part of 2017 that establish a series of tax benefits applicable to Small and Medium Enterprises (SMEs) seeking to benefit this type of companies taking into account theur important role in the economy of Argentina. To categorizated as an SME, it established a quantitative criterion based on annual sales divided by sector and category, which are detailed below:
Tax benefits that can be assessed according to the category in which the SMEs are classified are the following:
• Tax on bank debits and credits: If Companies are categorized as micro or small, may use 100% of this tax as payment on account of tax return. In the case of companies categorized as Manufacturing industries medium – section 1, can computed 50% of the tax as payment on account of tax return, the rest of the categories of SME do not have additional benefits.
• Exclusion in the Minimum Presumed Income Tax: the exclusion of the Tax has effects as of the fiscal years beginning as of 01/01/2017.
• Deferred paying of the VAT: This benefit is aimed at micro and small enterprises, and provide the possibility of paying the remainging VAT on the maturity day corresponding to the second Month immediately following the original maturity date.
• Payment to account in the tax return from productive investments: The amount of the payment into account is 10% of the value of the productive investments made. The reference value for the calculation of the payment on account of the original cost of the depreciable assets, for farmmer establishments, the amortizable value of the pedigree or pure females for the crossing, defined by tax return Law. The mentioned payment into account has some limitations, first is that it can not be greather than the determined income tax for the exercise in whitch the benefit is used and the impossibility of using the surplus in future exercises. The second one is given by a percentage of the net income obtained in the year in which the investments were made and the previous one. This percentage will be 2%, an exception of manufacturing industries classified as micro, small and medium-sized stretch 1, with a limit of 3%.
• Tax credit for investments in capital goods and infrastructure works: refers to the possibility given to SMEs to request that VAT tax credits corresponding to investments in capital goods and / or infrastructure should be converted into a nontransferable bond that can be used for paying national taxes, including customs duties. The objective of this benefit is to prevent SMEs from accumulating VAT technical balances, formed by the tax credits contained in investments in capital goods or in infrastructure works, which, if maintained in time, can become a serious financial problem and in a disincentive to investment.
Victor Hernandez, Auren Argentina