The Federal Administration of Public Revenue (AFIP) has published in the Official Journal an extension of the deadline within which workers must inform their employers of Annual income tax deductions. Now there will be time until April 30th.
This was captured by General Resolution 5494/2024, published this Tuesday in the Official Journal. It has extended the deadline for completing form 572 “SIRADIG Worker” until Tuesday 30 April 2024 inclusive.
In turn, the agency determined that employers will have time until next May 31st to carry out the liquidation and that the reimbursement of the excess withholding tax will be made until 10 June 2024.
The goal of this extension is ensure legal security regarding last year’s annual income tax settlement.
Therefore, the 2024 provisional settlement was modified by several decrees of the executive power which had no effect on the relevant legal provisions.
Consequently, the administration of Javier Milei presented to Congress an initiative to validate, with the hierarchy of law, the provisional provisions dictated by the executive power during 2023.
The 5 keys to the measure, in the mouths of taxpayers
Below, tax expert Sebastián Domínguez, director general of SDC Asesores Tributarios, explains why the deadline was extended:
- Why is the deadline extended?
The deadline is extended because the income tax tables applied by employers for the 2023 tax period are not those resulting from the Income Tax Law and, in the annual settlement, the latter must be applied.
It so happens that the previous National Council mandated AFIP with Decrees to increase the tax scales for the purposes of the withholding tax regime for employees in a relationship of dependency on two occasions: in August 2023 with Decree 415/2023 and in September 2023, with Decree 473/2023.
And those instructions were not passed by a law of the national Congress.
- What happens if the indications given by the Decree are not transposed into a law?
The executive power The citizen cannot change taxes by decree.
Accordingly, if the changes are not approved by a new law, the income tax rates provided by the Income Tax Act apply.
This could generate debt for employees with compensation subject to income tax for the 2023 tax period.
- Has something similar happened in the past? How was it resolved?
Something similar happened in one of Cristina Kirchner’s governments, in the sense that a debt was generated due to the application of what was established. by a decree not confirmed by law.
The solution found was that the AFIP application determines the debt but that its registration is not necessary pending a subsequent legislative change that contemplates the treatment of the Decree.
Eventually legislative reform was implemented and the debt ceased to exist.
- Is there a bill to approve these changes?
General resolution 5494 mentions that project 0026-PE-2023 sent by the national executive in January 2024 is underway to solve this problem.
The problem is that the government announced that it would withdraw that project and now a new draft has been released of the tax relief project to be sanctioned after the approval of the Basic Law project with the aim of signing the May Pact.
This new draft contemplates the approval of the tariff increase in line with the Decrees in conjunction with other reforms.
The point is that, in the current political context, it is not certain whether this project can be approved. And this problem, generated by politics, puts many employees in a situation of uncertainty.
Consequently, in our opinion, the National Executive and/or any MP, regardless of the political party to which he belongs, should send a bill that deals exclusively with this topic and approve increases in income tax rates in line with the Decrees.
Furthermore, the Chamber of Deputies and the Chamber of Senators should quickly convert it into law, providing a solution to the problem.
- What happens to employees who are eligible to claim a refund of income tax payments for foreign travel, card usage, dollar savings, etc.?
Employees who need to claim tax revenue refunds for foreign travel, card consumption, dollar savings, etc. to their employers, they are damaged.
On the one hand because part of these perceptions can be absorbed by the tax generated by applying the legal rates instead of those applied by the Decrees. And on the other hand, because if the return corresponds, it will be made later.
Originally, employers had until April 30, 2024 carry out the annual payment and had to repay in the first subsequent instalment.
Now they have time until May 31, 2024 make the annual payment and must make the repayment in the first subsequent instalment.
That is, the relevant returns will be delayed for almost a month without any interest to the employees.
Source: Clarin
