Administrative Decision 817/2020

We inform that the day 18/5/2020 the Administrative Decision has been published in the Official Gazette 817/2020, through which the Chief of Staff decided to adopt the recommendations made in Act No. 11 by the Evaluation and Monitoring Committee of the Emergency Assistance Program for Work and Production.

By virtue of it, different measures have been arranged, namely:

1- Complementary Salary - Extension of requirements

All employers - regardless of the number of workers they have- who intend to obtain the benefit of the Supplementary Salary in relation to the salaries accrued in May, in addition to being included in the AFIP list and having had the stipulated billing reduction, must meet the following requirements:

  1. They will not be able to distribute profits for the fiscal periods closed as of November 2019.
  2. They will not be able to buy back their shares directly or indirectly.
  3. They will not be able to acquire securities in pesos for their subsequent and immediate sale in foreign currency or their transfer in custody abroad..
  4. They may not make expenditures of any kind to subjects directly or indirectly related to the beneficiary whose residence, establishment or domicile is in a non-cooperative jurisdiction or with low or no taxation.

We recall that these requirements were previously required only of employers with more than 800 workers to 29 February 2020.

2- Period of maintenance of the requirements indicated in the previous point

2.1 Companies that had 800 employees or less at 29/02/2020

To obtain and maintain the benefit of the Supplementary Salary for May's assets 2020, will not be able to carry out such operations during the current fiscal year and the TWELVE (12) months following the end of the fiscal year after the one in which the benefit was granted, including previous accumulated results. In no case may there be a decrease in net worth due to the causes previously described until the end of the TWELVE period. (12) months before indicated.

2.2 Companies that had more than 800 employees at 29/02/2020

Regarding these companies, to obtain and maintain the benefit of the Supplementary Salary for the May assets 2020, Now they will not be able to carry out the operations indicated during the current fiscal year and the TWENTY-FOUR (24) months following the end of the fiscal year after the one in which the benefit was granted, including previous accumulated results. In no case may there be a decrease in net worth due to the causes previously described until the end of the term of TWENTY-FOUR (24) months before indicated.

We remember that, to obtain the Supplementary Salary for the assets accrued in April 2020, These companies had to comply with these requirements for the term of 12 months.

2.3. Breach

Although the new provision does not expressly state so, it could be interpreted that compliance with the established requirements should constitute a condition of the agreed benefit, determining its non-compliance a cause for its expiration and the consequent obligation of the beneficiary to make the pertinent refunds to the National State.

This had been established for the Supplementary Salary for the assets accrued in April 2020.

3- Complementary Salary - Control of compliance with requirements

For the purpose of controlling the requirements established for the receipt of the Supplementary Salary, The AFIP will send to the Central Bank of the Argentine Republic and to the National Securities Commission the list of corresponding beneficiaries to carry out the control actions that are related to their respective competencies..

4- ATP program – Return

Regarding companies that request it, the AFIP will constitute a mechanism to implement the withdrawal of the Program with respect to the Supplementary Salary.

In the cases in which the Supplementary Salary had been paid to the workers, Said amounts plus any accessories that may correspond must be transferred to the AFIP, which will proceed to turn them to the ANSES.

5- Employer contributions destined to SIPA - May salaries 2020

In relation to the benefits of postponement and reduction of employer contributions destined to the Argentine Integrated Social Security System corresponding to the salaries of May 2020, the AFIP is ordered:

  • Postpone the expiration date of said contributions with respect to those who are beneficiaries of the ATP Program and are included in the activities to which this benefit was agreed in advance, Y;
  • Reduce by 95% such employer contributions for those who are beneficiaries of the ATP Program and are included in the activities indicated in the embedded Annex cited in point 2 of Act No. 4 and at the point 2.3 of Act No. 5 of this Committee

6- Zero Rate Credit – Monotributistas

Some requirements are modified for the perception of the benefit.

7- Extension of beneficiary activities April supplementary salary 2020

The list is expanded to activities related to transport, education and warehousing and warehousing services n.e.c..

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