Just as you anticipated Ambitthe administration Federal Public Revenue (AFIP) provided that large companies that have benefited from extraordinary profits during 2022 must make a payment on account of the Income Tax. This was established through Resolution 5391/2023, published this Friday in the Official Gazette, which makes the measure official and indicates that the universe reached by it represents a universe of less than 1% of all legal persons that present the affidavits of the mentioned tribute.
The measure has the objective of “contributing to the progressive redistribution of income, in order to alleviate inequalities and reduce the negative impacts on the most vulnerable sectors of the population,” the measure states.
It covers those companies that have reported a Tax Result -without applying the deduction of tax loss carryforwards from previous years- that is equal to or greater than $600 million and have not determined tax. Excluded from the aforementioned payment on account are those legal entities that have a certificate of income tax exemption. These are individuals who “have not only benefited from economic growth, but also show a high tax capacity.”
Earnings Advance: who should pay it?
The standard issued by the body that conducts Carlos Castagnetosignatory of the resolution, established that the affected subjects must consider the affidavit of income tax corresponding to the fiscal period 2022, in the event that the closing of the fiscal year had operated between the months of August and December 2022, both inclusive. .
Likewise, those taxpayers whose year-ends had operated between the months of January and July 2023, both inclusive, must consider the affidavit of income tax corresponding to the 2023 fiscal period.
Payment on account will be computable in the fiscal period following the one taken as the calculation basisaccording to the following detail:
a) With year-end operated between the months of August and December 2022, both inclusive: fiscal period 2023.
b) With year-end operated between the months of January and July 2023, both inclusive: fiscal period 2024.
Large companies: how this Earnings advance is applied
The amount of the payment on account will be determined by applying 15% on the Tax Result of the immediately preceding fiscal period to the one to whom the payment on account will be allocated, without considering the deduction of tax loss carryforwards from previous years. It will be paid in three equal and consecutive installments, on the dates indicated below:
As reported by AFIP, the provisions are in line with what is established by the Organization for Economic Cooperation and Development (OECD), which criticized the fact that large companies with extraordinary profits do not pay income tax and elaborated specific regulations that address the problem, in a framework that proposes a reform of the international tax system.
Source: Ambito
