After the press conference of the head of the AFIP and after the dissemination of the bill that would be dealt with in extraordinary sessions by Congress, it could be envisioned that the debugging of the MonotaxAs the Fund would like, it would be focused on the application of the systemic exclusion mechanisms that are provided by law. These indications, which the Treasury has to ex officio exclude small taxpayers, were suspended from October 2019, in force until January 4 of this year.
The expulsion proceedings, although they were suspended, were not eliminated, since once the benefit ends, it remains to define how they would be reimplanted, making a « clean slate » or reviewing what happened during the months of the measure, refloating the tax consequences retroactively. Another relief measure was the suspension of withdrawals from the Simplified Regime due to non-payment of ten consecutive monthly payments; in this case, you will have to pay the amount owed and re-enroll in the Monotax. This pardon has been in force since March, the month in which the effects of the pandemic began.
Situations that enable the AFIP to leave ex officio
According to the law, taxpayers are fully excluded from the Simplified Regime, when:
The sum of the gross income obtained from the activities, in the last 12 months immediately prior to obtaining each new gross income —including the latter— exceeds the maximum income limit. The physical parameters or the amount of accrued rents exceed the established maximums. The maximum unit sale price, in the case of taxpayers who make sales of movable things, exceed the limit established for the year. Acquire goods or make expenses, of a personal nature, for a value incompatible with the declared income and as long as those are not duly justified by the taxpayer. Bank deposits are incompatible with the income declared for the purposes of categorization. They have made imports of movable things for their subsequent marketing and / or services to final consumers. They carry out more than 3 simultaneous activities or have more than 3 operating units. Carry out locations, provision of services and works, having been categorized as if they were selling movable things. Its operations are not supported by the respective invoices or equivalent documents corresponding to purchases, service locations. The amount of purchases plus the expenses inherent to the development of the activity carried out during the last 12 months, total an amount equal to or greater than 80% in the case of sale of goods or 40% in the case of locations, provision of services and / or execution of works, of the maximum gross income set for Category H or, where appropriate, in category K.
11. The taxpayer is included in the Public Registry of Employers with Labor Sanctions (REPSAL).
What happens this year with the recategorization
The bill does not modify the Monotax law (24977), but rather complements it. It does not mention anything in relation to the next recategorization, which according to the AFIP expiration schedule is still set for January 20. Neither were the new tables of the categories published, with the parameters and fees to be paid, incorporating the 35.31% update, which represents the variation that the minimum pensions had throughout the past year. The project that this coefficient will govern for the entire year 2021, retroactively from January 1; However, as the new categories are not published, until the law comes out, the values of the year 2020 remain.
Making a counterfactual analysis, if all this had not happened, this year many monotributistas –except for the activities that were not affected- would have dropped from their framing category due to the severe reduction in the amounts invoiced during quarantine and even more so when the update was incorporated in the income parameter, which defines the adhesion category. This would undoubtedly have caused a significant reduction in what would have been collected by this tax in 2021.
The bridge that avoids the leap into the void
The bill is fundamentally based on creating a relief for monotributistas who exceeded the indications that the AFIP uses to determine the ex officio cancellation; Also, for those who are excluded this year for having exceeded the maximum billing level accepted by the scheme and, finally, establishes a permanent system of transferring not so traumatic and expensive from the Monotax to the General Regime.
Taxpayers who exceeded billing: Those who exceeded, by up to 25%, the billing limit accepted by the Simplified Regime may remain in the Monotax by paying the difference that arises between the monthly payments they paid according to their category and those established for the last step accepted by the regime. Additionally, they have to pay an extra amount of integrated tax that is determined by multiplying the 0.10 coefficient on the difference that arises between the gross income earned and the income limit of the highest category. Enrollment in the highest category must be registered from the day the taxpayer exceeded the billing limit (trade or service) that is accepted to be in the Monotax.
Benefit for compliants: Those who communicated their exclusion and enrolled in the General Regime, until the last day of the month following in which the cause originated; and those who renounced the Monotax, from October 1, 2019 to December 31, 2020 and to the extent that they have not exceeded 25% of the upper limit provided for the maximum category, may again adhere to the Simplified Regime; or, to the extent that they have invoiced 50% of the categories that define Micro companies (according to the SMEs table) continue in the General Regime being able to take advantage of a reduction of 50%, 30% and 10% of the tax debit corresponding to the three years, counted from the year following the exclusion. If they exceeded by more than 25% in their billing, they will not be able to choose to return to the Monotax, but they can take advantage of the benefit of reducing the tax debit.
Benefit for those who did not notify: A transitional procedure for incorporation into the General Tax Settlement Scheme (VAT, Profits and Self-Employed) is created for those who are registered in the Monotax, insofar as they have not exceeded 50% of the annual sales limit foreseen for the Micro companies in the SMEs table. For these taxpayers, retroactive registration is required in each of the taxes, from the date on which the Simplified Regime was excluded and until December 31, 2020. It may be computed, as a presumed tax credit, until December 17 35% of what their suppliers billed them. In addition, they may consider a twelfth of 50% of the VAT rate on the upper limit of gross income of the maximum category. This total resulting tax credit will be capped at up to 75% of the tax debit determined for the fiscal period. Also, there are benefits for the liquidation of Profits, since an amount equivalent to 82.65% of what is billed by those registered in VAT for the purchase of goods and services may be computed as a deductible expense. Additionally, they may deduct a special deduction for 50% of the upper limit of the gross income of the maximum category. These total deduction amounts may not exceed 75% of the sum of the earnings of the four categories.
Those that are excluded by systemic controls in 2021: Also these taxpayers, who are expelled ex officio from the regime by the AFIP have considerations in the settlement of VAT and Income Tax that they must register. For this reason, the project establishes that the invoicing made to monotaxers must be carried out by means of an « A » voucher, discriminating the VAT contained in the operation.
The project does not contemplate modifying the name in this less and less easy way to pay taxes. In spite of everything, it will continue to be called “Simplified Regime”.