Reform of the Income Tax Prepayments Regime

The proceeding and requirements set forth in Resolution 327 were modified in order to asses and pay the Income Tax prepayments through Resolution 4034-E.

According to Resolution 4034-E, to request the prepayments reduction, the taxpayer must:

• Have a tax ID with no administrative restrictions.
• Set and maintain the electronic tax domicile.
• Not having requested other prepayment reduction for the same tax and period during the last 180 days.
• Having submitted all corresponding tax returns.

Once performed, the request is going to be analyzed taking into account the Risk Profile System, among other variables. AFIP (Local Tax Authority) may require additional documents within a 60–day period after the presentation. If the taxpayer does not respond such request, the reduction request will be rejected.

Once the option has been exercised, it will be recorded in the system, and the reduction will apply to all the prepayments for such fiscal year. If the reduction is rejected, AFIP will request the payment of deficiency interest in the unpaid prepayments.

Resolution 4034-E will enter into force on May 8, 2017.