translated from Spanish: The monotribute recategorization period expires: what you need to know

The recategorization of the monopower has a deadline and expires this Monday. Several experts raised doubts about the effectiveness of this scheme, based on the obligation to invoice electronically. In this Simplified Regime for Small Taxpayers there are about 3,150,000 monotributists, of which some 550 thousand are the so-called “social monothributistas”.” Therefore, 2,600,000 people will have to add their invoices from the period July 2018 to June 2019 and see if they have checked into their category or if they should change to a greater or, also, a minor,” explained LP consultant Vicente Lourenzo accountant and consultant owner.

The accountant explained to Noticias Argentinas that a large majority of taxpayers, during that period, were required to invoice electronically, “so the amounts were recorded in the AFIP”.  “This means that, by uses and customs of not billing, many of them will fall into a smaller category. For the time being, there is no downside to being placed in the same category even if the turnover has been lower,” Lourenzo explained.But clarified that AFIP “also knows the expenses incurred mainly by credit card and the amount of bills received: this shows a reality of the regime, because because it is not customary to invoice, there is no way to justify income that pays the card or bank movement.”

To explain, he gave an example: if a psychologist is enrolled in Category D whose cap is $414,383 per year and that from December 1, 2018 he had to invoice electronically, he will find that he only billed from July to November 2018 $60,000 and another $21.5 00 From December 2018 to June 2019.” The problem is that AFIP, by information from banks, knows that in that period that person consumed by credit card the sum of $400,000. And the agency will probably generate a request for information to justify where it got the funds to be able to pay,” he said.

They estimate that in the lower categories of single-pay (A and B) there are 1,325,000 people and it is “where the levels of bill generation are very low”, according to Lourenzo.De agreement to the cash recommendation, the single-butt AFIP to be able to obtain the information that the agency owns from that person, and based on these parameters consult with your accountant to analyze whether you should change any particular behavior (such as not billing).

Original source in Spanish