Regulatory Resolution 11/2024

In brief

On 28 February 2024, Regulatory Resolution 11/2024 (“RR 11/2024“) of the Tax Agency of the Province of Buenos Aires (TABA) was published in the Official Gazette of the Province of Buenos Aires. The resolution regulates the additional advance payment (“Additional Advance Payment“) on gross income tax (GIT) established in Article 136 of Law 15,479 (Tax Law 2024), which establishes that taxpayers who comply with the parameters established in the RR 11/2024 shall pay an additional GIT advance payment equal to four times the amount of tax determined in the advance payment for the month of October 2023.

In focus

The main aspects of RR 11/2024 are as follows:

1. Subjects covered by RR 11/2024: Taxpayers subject to the Additional Advance Payment are GIT taxpayers — both local taxpayers and Multilateral Agreement taxpayers — who meet, simultaneously, the following requirements: (i) they qualify as large taxpayers according to the classification methodology for income level and activity as established in Annex I of RR 11/2024; and (ii) they carry out an activity corresponding to a market with a high degree of concentration, considering as such a value of the Herfindahl and Hisrschman Index (HHI) higher than 1,800, calculated in accordance with the methodology described in Annex II of RR 11/2024.

2. Subjects excluded from RR 11/2024: Those taxpayers who, as of 29 January 2024 meet the following requirements, are excluded from the obligation to pay the Additional Advance Payment: (i) are cooperatives, non-profit civil associations, state-owned companies, state-controlled companies, companies with majority state participation, mutual companies or non-state public entities; and/or (ii) develop activities that correspond to the provision of services provided for in subsections 1) (taxpayers involved in the distribution of electric energy) and 3) (taxpayers involved in the distribution of gas through grids) of Article 1 of Regulatory Resolution No. 12/2019, as amended, and have complied with the information regime provided for therein with respect to the obligations due for 2023.

3. Communication: TABA will communicate to the covered subjects the obligation to pay the Additional Advance Payment through their respective electronic tax domiciles, the amount to be paid and the due date, together with the data based on which it has been verified that they qualify as large taxpayers and develop an activity that corresponds to a market with a high degree of concentration.

4. Amount: The amount of the Additional Advance Payment is set at four times the amount of the tax determined in the advance payment for the month of October 2023. In the case of taxpayers and/or responsible parties who have not filed a tax return or have not declared income in that month, the amount of the Additional Advance Payment shall be set at four times the amount of the tax determined in the most recent advance payment not covered by the statute of limitations, increased by 70%.

5. Settlement: The amount of the Additional Advance Payment shall be settled by the TABA. When the taxpayer registers credit balances in the GIT, the settlement will be issued for the difference owed once the surpluses registered by TABA in the taxpayer’s current account have been deducted. Taxpayers must obtain the payable amount for the payment of the Additional Advance Payment through the specific application that will be available on the website www.arba.gob.ar, which must be accessed using their Tax ID (CUIT) and Tax Identification Code (CIT).

6. Payment: The Additional Advance Payment shall be paid in a single installment, until 8 March 2024, through the payment methods enabled for such purpose.

7. Positive tax balances: The positive tax balances generated by the payment of the Additional Advance Payment may be used for the settlement of advance payments due or subsequent advance payments, in accordance with the provisions of the second paragraph of Article 103 of the Tax Code (Law No. 10397 -T.O. 2011- as amended), even exceeding the tax period. Notwithstanding the foregoing, taxpayers may request the offset of the balances in their favor with debit balances or file a claim for reimbursement, in accordance with the provisions of Articles 102, 133 and related articles of the Tax Code.

8. Reduction of tax rates in CIT collection regimes: Taxpayers who have paid the Additional Advance Payment will be included ex officio with reduced rates in all tax collection regimes applicable to them as from the month following the month in which the payment of the Additional Advance Payment has been registered in TABA’s databases. This measure shall be maintained as long as surpluses arising from the payment of the Additional Advance Payment continue. Likewise, the taxpayers mentioned in the preceding paragraph shall not be subject to the increase of GIT collection rates by tax risk category provided for in Article 26 of Regulatory Resolution No. 2/2013, as amended, during the 12 months following the month subsequent to the month in which the payment of the Additional Advance Payment is registered in the databases of the TABA.

9. Non-compliance: Taxpayers who do not pay the Additional Advance Payment within the corresponding term will be included in the highest representative category of tax risk, according to the provisions of the regulations in force, during the 12 months following the one in which the referred due date occurs. In addition, debts corresponding to the Additional Advance Payment, its interest, accessories and penalties cannot be regularized by means of the regulations established in Regulatory Resolution No. 36/2023.

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