The regulation was recently published in the Official Gazette and aims to amend various legal frameworks in matters of regulatory simplification and the promotion of economic activity, including the introduction of a temporary benefit for small and medium-sized enterprises (SMEs) regarding the annual First Category tax and monthly provisional payments.
On July 7, the National Congress approved and sent for enactment a bill amending various legal frameworks in matters of regulatory simplification and the promotion of economic activity, which includes the introduction of a temporary benefit for small and medium-sized enterprises (SMEs) in terms of the annual First Category tax and monthly provisional payments.
On July 11, Law No. 21,755 was officially published in the Official Gazette, modifying various legal frameworks related to regulatory simplification and the promotion of economic activity.
Among the most notable aspects of the reform are:
– Temporary reduction of the First Category tax rate to 12.5% for companies under the Pro-SME regime, applicable between 2025 and 2027, subject to conditions linked to the progress of the new pension system.
– Reduction by half of monthly provisional payments (PPM) for these same companies during the same period.
– Extension until 2035 of the tax incentive for private investment in research and development (Law No. 20,241).
– Expansion of financial reporting obligations: issuers of prepaid cards, whether banking or non-banking, must report annually to the SII.
– Reform of procedures and statutes of limitations for sanctions related to tax avoidance planning, adjusting deadlines and mechanisms for applying fines to tax advisors and responsible parties.
Review the following document prepared by Christian Delcorto, Partner of Tax Consulting and Compliance at CCL Auditores Consultores, to learn about the main changes and benefits of this law.