Global Daily Tax News, Argentina To Encourage Errant Taxpayers To Use Tax Amnesty, (Aug 5, 2024)

Argentina's federal tax agency, AFIP, has announced that it is to begin an outreach program with about 24,000 taxpayers whose affairs are currently being probed to encourage them to take advantage of a new tax amnesty scheme.

AFIP said these taxpayers either have inconsistencies or debts related to the extraordinary solidarity contribution, errors in invoices, or undeclared foreign holdings. These cases are worth about ARS400bn (USD429m), AFIP estimates.

They will be encouraged to take advantage of the tax amnesty scheme covering customs, tax, and social security debts due as of March 31, 2024.

Provisions for the amnesty were included in the latest tax reform law, Law 27,743. These enable taxpayers to avoid penalties and reduce interest, providing a payment plan is established by December 13, 2024, inclusive.

Self-employed workers, micro and small businesses, and non-profit entities can settle in up to 84 instalments, with a full waiver of penalties. Other categories of taxpayers may settle the tax due in either 36, 48, or 60 monthly instalments. Instalments are due on the 16th day of each month.

Other taxpayers will benefit from a waiver of interest on the tax due depending on how quickly payment is made. For payments within 30 days of an agreement, 70 percent of the interest will be waived. Where payment is made within three months, a 50 percent rate will apply, while 20 percent of the interest due will be waived where payment is made over a period of more than three months.