Suspension of exclusion to the Simplified System is extended

August 28, 2021

Through General Resolution No. 5056/2021, the Federal Administration of Public Revenues modified the Simplified Regime for small taxpayers (Subsidiary Regime) as well as the full exclusion and automatic cancellation of payments in systemic processes.

1. Legislative Background

By Decree of Necessity and Urgency No. 260 of March 12, 2020, extended by Decree No. 167 of March 11, 2021, the sanitary emergency concerning COVID-19 was extended throughout the national territory. Therefore, as a reactivation and economic support measure for taxpayers, a set of regimes applicable to different tax situations were created.

In this regard, the “Tax Sustainability and Inclusion Regime for Small Taxpayers” were created, which provided for a series of temporary and permanent measures related to the permanence of the subjects included in the Simplified Regime for Small Taxpayers, while Law No. 27,639 implemented the “Program for Strengthening and Tax Relief for Small Taxpayers” to give a new boost to this sector through greater tax relief and predictability to their economic activity.

Having the creation of these regimes, the AFIP (Administración Federal de Ingresos Públicos – Federal Administration of Public Revenues) suspended until August 2, 2021, the systematic procedure to apply the full exclusion, also suspending the consideration of the periods between March to December 2020 and January to July 2021 to calculate the period to apply the automatic cancellation.

2. Decreed extension

Following the above, the AFIP considered appropriate to extend until December 1, 2021, the suspension of the procedure referred to the exclusion of full exclusion from the Simplified Regime for Small Taxpayers as any other systemic process related to the framing and categorization of small taxpayers under the last of the aforementioned general resolutions.

Likewise, the suspension of the consideration of August to November 2021 was also extended to calculate the term to apply the automatic cancellation provided for in Article 36 of Decree No. 1 of January 4, 2010, as amended.

Source: Boletín Oficial 2