Taxation of companies in times of COVID-19
COMPANIES WITHOUT ACTIVITY
It is possible to process the inactivity of certain companies, in the case of not developing activity in a certain period, in BPS.
The term is 30 calendar days from the beginning of the inactivity. The requirements vary according to the nature and activity of the company.
COMPANIES WITH REDUCTION IN ACTIVITY
Companies can contract with experts an IRAE estimate to determine if the unusual losses suffered allow them to limit the advances they make by IRAE.
Although most companies close their fiscal year on 12/31, there are others with different closings, which should use this tool earlier.
There are two mechanisms:
Stop making advances
It consists of stopping making IRAE advances (except for the minimum IRAE) when it is estimated that the IRAE for the year is covered with those already made.
This mechanism runs the risk of paying fines and surcharges in the event that the company's situation reverses at the close of the fiscal year.
File provisional affidavit and stop anticipating
This mechanism, unlike the previous one, allows the company to be protected from the risk of paying fines and surcharges, as long as a monthly provisional affidavit is submitted to the DGI justifying the non-payment of IRAE advances until the end of the fiscal year.
Finally, we inform that there are special tax regimes for companies with a smaller economic dimension:
o Small business
There is currently a bill pending approval which states:
Exonerate 40% of the personal and employer contributions included in the industry and commerce regime corresponding to the contribution of the owners of sole proprietorships, partners of personal companies and the taxpayers who are under the monotax regime.