ARGENTINA

On May 6, the national government announced a measure to exempt SMEs recording foreign sales of 50 million dollars in the previous year from withholding tax. Decree 280/2019 was signed by President Mauricio Macri, Chief of Staff Marcos Peña, Finance Minister Nicolás Dujovne and Production Minister Dante Sica.

The measures sets export duties of 12% for goods included in the MERCOSUR Common Nomenclature and provides that this duty shall not exceed three or four pesos for each U.S. dollar of the taxable value.

In line with this announcement, the Securities Commission (CNV for its acronym in Spanish) a day later updated the maximum total annual income thresholds enabling SMEs to be considered for the capital markets, which would allow them to access financing. The decision was announced in General Resolution Nº 793, establishing maximum annual revenues: $ 431,450,000 for Agricultural activity; $ 1,441,090,000 for Industry and Mining; $ 1,700,590,000 for Commerce; $ 481,570,000 for Services; and $ 630,790,000 for Construction.

Finally, and continuing with government measures to provide more benefits for SMEs, this week the Federal Administration of Public Revenues (AFIP) issued General Resolution Nº 4477, which allows taxpayers to join the new regime of payment facilities for those owing tax and social security payments until May 15. This means that those making payments of 20% can pay in 60 installments, payments of 15% in 36 installments and those who opt for 10% in up to 48 installments.