The law today
In business year 2020 (TA 2021), taxpayers who were under one of the general tax regimes in force until December 31, 2019 (Semi-Integrated Regime and Attributed Income Regime) were reclassified and automatically transferred by the Internal Revenue Service to one of the new general tax regimes (Semi-Integrated Regime or Pro-SME Regime).
However, it is the responsibility of each taxpayer to verify whether it was reclassified and transferred to the corresponding regime (and, in turn, to the one that is convenient for it).
In practice, it has been found that a significant number of taxpayers were incorporated into the Pro-Sme Regime, and that they did not meet, at the date of their transfer, the requirements to join and/or remain in such tax regime. Likewise, other taxpayers were excluded from the referred regime, being reclassified as large companies, however, they complied with the requirements of the SME Clause.
Taxpayers have until April 30, 2021 to join the general tax regime that corresponds to them and/or is convenient for AT2022.
On September 2, 2020, Law No. 21.256 was published, establishing tax measures that are part of the emergency plan for economic and employment reactivation within a medium-term fiscal convergence framework.
This new law, among other things, establishes the following:
a) A transitory decrease of the First Category Tax rate to 10% for companies under the Pro-SME Regime, with respect to the income they receive or accrue during business years 2020, 2021 and 2022.
b) The option for VAT taxpaying companies under the Pro-SME Regime that meet the requirements set forth in this law to request a refund of the accumulated remainder of the VAT tax credit determined in the VAT returns for the months of July, August or September 2020.
c) The option for taxpayers who declare the First Category Tax on effective income determined according to complete accounting to depreciate instantly and integrate the physical assets of the fixed assets acquired new or imported between June 1, 2020 and December 31, 2022. This exceptional depreciation regime will also be applicable to certain intangible assets acquired by this class of taxpayers during the same period for the interest, development or maintenance of the company.