The Federal Administration of Public Revenues (AFIP) will re-implement the Fiscal Registry of Mining Activities that had been taken out of operation during the Government of Mauricio Macri. As Ámbito was able to confirm through government sources, the measure will be made official in the next few hours through a resolution that will be published in the Official Gazette. It will be mandatory for companies in the field, their suppliers and holders of exploration rights. A VAT and Income Tax withholding regime will be established.
How this medium anticipated weeks ago, the organization led by Carlos Castagneto is working at this time to speed up its program to improve collection. In its 2021-2025 strategic plan, the collecting entity focused on two key taxes: VAT and Earnings. In turn, it developed a tool to measure the level of non-compliance and a risk matrix to detect sectors to target.
Some concrete measures are beginning to be known at this time. According to official sources anticipated to this medium, the Fiscal Registry of Mining Activities, which was eliminated by the management of Mauricio Macri, will be put into operation again. The initiative aims at “optimize” the supervisory function of the AFIPTherefore, the control actions on this economic activity will be increased.
The official text that Ámbito was able to access details that “by virtue of the evaluation carried out on the mining sector, it is necessary to provide for specific withholding regimes regarding operations carried out between companies. For the purposes of encouraging compliance with registration or registration by obligated subjects, differential rates withholding for those who comply with said registration”.
Who will be required to register in the registry?
The registry will have three sections: Mining Companies, Suppliers of Mining Companies and Holders of exploration or prospecting rights. The measure specifies that individuals, undivided estates, companies or sole proprietorships, companies, associations and any other subject that develops mining activities will be required to register. The official communication points out that the registration will not reach companies that carry out activities related to liquid and gaseous hydrocarbons.
VAT and Earnings Withholding Regime
With the application of the Fiscal Registry of Mining Activities, a VAT withholding regime that will have as withholding agents the mining companies, those responsible registered in that tax and companies that provide project management services for the mining sector. The retained subjects will be the suppliers of mining companies and the suppliers of those companies that carry out the provision of project management services for the mining sector. The rates will be 10.5% or 21%, depending, among other issues, on the registration in the Registry.
As for the Income Tax A regime will be established that will have as withholding agents mining companies, VAT registered managers and companies that provide project management services for the mining sector. The retained subjects will be the suppliers of mining companies and the suppliers of those companies that carry out the provision of project management services for the mining sector. The established rates will be 20%, 30% or 35% depending, among other issues, on their registration in the income tax and in the fiscal registry that will be implemented.
Validity and application
According to the planned schedule, the measure It would come into effect from April 1, 2023. The registration would take place until May 10 and the withholding regime for Value Added Taxes and Earnings for perfected payments will be given as of May 16.