All those who have resource management responsibilities in an agricultural company, and even more so when they must take charge of financial management, know the impact of the availability of each peso for as long as possible.
A) Yes, the correct administration of payment commitments becomes sensitive and will impact the results end of the company.
A correct tax planning that includes a strategy for advance payments tax can generate interest savings and cash flow improvements of the cash in the agricultural company.
Some tax obligations, such as the income tax, have a system of advance payments on account of the balance of the affidavit of the same.
Therefore, companies are carrying out Advances on account of the balance of the annual affidavit and at the expiration of the filing of the tax return (earnings in this case), they will determine whether to pay the balance or whether the amount of the advances covered and / or exceeded it.
Many companies, having the accounting registered “up to date”, can calculate in advance the amount of tax to be paid at maturity, which will occur five months after the close of the fiscal year. So, it would be feasible that, if the balance of the tax calculated in advance is less to the accumulated balance (so far) paid by advances, then the remaining advances are not taxed, precisely because they would exceed the tax obligation.
However, the National Treasury maintains that advances are autonomous obligations, for which they must be entered regardless of the balance provided by the affidavit of the tax for which they are made. The advance payment regime, regulated by the art. 21 of law 11.683 It cannot be modified by the advance by the taxpayer of the presentation of the sworn declaration, since there is no legal provision that protects a claim of this style.
That is to say, Presenting the affidavit in advance, does not invalidate the payment of the remaining advances, even if they exceed the tax obligation.
Faced with this situation, in which the taxpayer presents the sworn statement in advance of its expiration and stops paying the advances, must pay the corresponding interests from the expiration of each one to the general expiration date of the affidavit of the aforementioned tax.
So this is where it becomes important to use tax planning, since, if this situation had happened, what the taxpayer should have done is the Advance Reduction Option established in RG (AFIP) 4034 and not submitting the affidavit in advance, failing to pay the remaining advances.
With the Advance Reduction Option, as long as it is correctly calculated, The amounts of advances that will exceed the final obligation are no longer taxed and no interest must be paid. As can be seen, the difference is important. The interest savings to be paid to the treasury can be significant and the availability of funds in cash can be favored.
* Editor’s Note: The author is a National Public Accountant, partner of BL & Cia – Barrero Larroudé – www.blycia.com.ar
#Advantage #Income #Tax #Advance #Reduction #Option