Earnings in advance: the AFIP chief assured the UIA that there is no turning back

For an hour and a half, the leadership of the Industrial Union met with AFIP chief Carlos Castagneto this afternoon. There was a friendly dialogue, two rounds of coffee and a certainty. Castagneto assured him “There is no going back with the advance payment of the Extraordinary Income”.

It seems that the arguments advanced by the head of the UIA, Daniel Funes de Rioja, by Diego Coatz, executive director of the institution, and by the technical team that accompanied them, were worth nothing.

Of course, Castagneto stayed and studied some relief for smaller companies and generates a working commission to analyze fiscal simplification, an old requirement of industrialists.

As for the advance, already rejected by entrepreneurial entities of all sizes, it was a measure envisioned by Mercedes Marcó del Pont before moving to AFIP to fill the post vacated by Gustavo Béliz.

To measure it will reach companies whose profitability has grown due to rising prices caused by the crisis caused by the war in Ukraine. It goes without saying that most companies are part of the list oil companiesprimary food producers, consortia of cereal producers and exporting companies and companies in general extraction.

“The tax burden that involves the advance payment of Profit could jeopardize the economic recovery. And this would not only affect large companies, but also some medium-sized ones. The universe of industrial enterprises reached (by the advance) represents the 54% of formal work and 70% of wages. In turn, the universe of companies reached reaches about 84% of total exports, “the UIA said in a note to its partners last week.

The UIA has complained that this is not the first increase in the tax burden, coupled with obstacles in foreign trade.

According to his point of view, the extraordinary advance deepens the lack of predictability necessary for the recovery of the economy and increases the financial cost of the productive sector, “in a context of great difficulty in obtaining resources to finance productive projects”.

“Furthermore, it undermines the future situation, as it anticipates resources that would be obtained in mid-2023 and which, if this measure is implemented, will not be received next year. Thus introducing a new factor of unpredictability regarding the mechanisms that will be designed in the future, with a potential greater tax burden for public finances in 2023, “the agency said.