Are you an entrepreneur? Congratulations! Welcome to the world of freelancers. Sure it is difficult at first, but very rewarding when you realize that you can achieve everything you set your mind to.
But among the first obstacles, you have the calculation and payment of your taxes, which are confusing at first for those who are starting as taxpayers. If so, then here we tell you how to comply with these tax obligations, through the current regime of Monotribute.
Stay with us, because we will give you answers to those questions that you have had for a long time, especially, what are the Steps and Requirements to be a Monotributista in Argentina.
Requirements to be a monotributista in Argentina
To be a Monotributista and part of this simplified regime, you must meet certain requirements, including the following:
- Sell products or provide services.
- Integrate a work cooperative.
- Form a company according to Law No. 19,550 Chapter I Section IV, which may have a maximum of 3 partners.
By meeting one of these qualities, you can then start your registration to the regime, and complete the following documents for your registration:
- Identification letter either ID
- Key Single Tax ID (CUIT)
- Domicile certificate issued by a police authority or a civil registry,
- Notarial certificate of verification
- Photocopy of some Public service’s bill to your name as an entrepreneur,
- photocopy of property deed or rental agreement of the property whose address is denounced,
- photocopy of bank statement or credit card statement,
- Photocopy of the municipal authorization or equivalent municipal authority.
If you already have these requirements in hand, you just need to continue with the steps indicated by AFIP, wait for your registration to be approved and your monotributista category assigned. Follow us, right here we tell you how to proceed.
What is the monotributo?
The monotribute or also known as the Simplified Regime for Small Taxpayers, is one of the two regimes in force in Argentina, which allows you to comply with your obligations and rights as a taxpayer at the national level. This regime consists of the monthly payment of a fixed fee, which exempts you from paying the Income Taxof Value Added Tax (VAT)and the Self-Employed Quota.
Depending on your level of gross annual income, the place where you carry out your economic activity, and the consumption of electrical energy required; As a professional, you will know in which category of the monotribute you locate yourself
There are 11 different categories, each one allows you to fulfill the aforementioned obligations, with a single payment or monetary amount, which you must declare and pay to the Federal Administration of Public Revenues (AFIP)the same institution to which you signed up to be a Monotributista.
How to pay
The most outstanding quality of the monotributista is the simplicity, speed and efficiency for compliance with the tax obligations corresponding to small taxpayers.
The payment of the monthly fee is also a fairly easy step for the entrepreneur, since its multiple payment channels allow you to do it from the comfort of your home, office, at the end of a meeting, or whenever and wherever you want.
You can pay your monotributista quota by electronic means such as the following:
- ATMs and Electronic Banking, which will give you a unique access code to pay your fee.
- Request debit of quota from your bank account or credit card adhered to the monotributista regime.
- By phone, by adding your card to the monotributista system
At any place or time, you can request your account statement on the official page of AFIPprint your payment flyer, and indicate which of the aforementioned payment methods is ideal for you and your business.
How to make data modifications
In case you need to update your information, regarding your billing or local address, it is also possible to do it from the same AFP website. Always remember to keep this data updated, since your monotributista category can change.
This change of category or recategorization is usually done three times a year, in January, May and September. This with the following intentions:
- January and May: Only if your business had any modification according to the development of your business.
- September: It is mandatory to confirm or update your category, so there is no further development in your business.
By making data modifications, you have all the information about your business up to date, you comply with your tax obligations, and the monotributista regime continues to be effective.
As we mentioned before, there are 11 monotributista categories, and depending on which one you are located in, your amount to pay will be established. Whether your economic activity is the provision of services or the sale of products, the AFIPsets up a category table that specifies the following:
- Categories: A, B, C, D, E, F, G, H, I, J, K.
- Gross income: From 107,525.27 pesos per year in category A, up to 1,344,065.86 pesos per year in category K.
- Economic activity: From category A to H for services, and from category A to K for the sale of products.
- Electricity Consumed Annually: Up to 3,330 kW per year in category A, and up to 20,000 kW per year in category K.
- Rents Accrued Annually: From 40,321.98 pesos per year in category A, up to 161,287.90 pesos per year in category K.
- Integrated Taxes: This will depend on the Location and Provision of Services, or the Sale of Products.
- Contributions to the Integrated Provisional Integrated System (SIPA) and Contributions to Obra Social.
For more details, you can visit the AFIP official pageand consult the table of monotributistas categories, and know in which category you and your business could be located.
Steps to register for the monotributo
In order to enroll in the monotributista regime, and begin to comply with your tax obligations quickly and easily, you must have the requirements already mentioned above at hand.
Having everything, you can then complete the steps that the AFIP indicates all taxpayers. Then we leave them here.
- get your Single Tax Identification Code (CUIT)by going directly to the offices of the AFIP closest to your tax address.
- with your number CUIT in hand, enter the official website of the AFIPand update your tax code in Change Password. Enter the current password and other requested biometric data.
- go to Registry Systemwithin the same web page, select the Type of taxpayeramong the options Employee
- Independent, Member of a Monotributista Company, Member of a Cooperative, or Promoted Independent Worker.
- Then click on Tax registration, and indicate your economic activity, as a provider of services or sale of products. Right there, select the regimen monotribute.
Once you’ve completed the steps above, congratulations! you are already a monotributista. From now on, you can be up to date with your payments.
How to get the monotribute
To know how much to withdraw or how much to pay in your next monotributo installment, remember that you can always ask for your account statement, check if you have a debt or a balance in favor, and choose the concepts to pay. This information will appear just before paying your share.
On the official website of AFIPyou can check your account at View Status, review what we already discussed, and choose your ideal payment method. This will generate a VElectronic Payment Bill (VEP).
Either in your electronic bank account, at an ATM or by telephone, depending on the payment method chosen, and with your VEP in hand, you can proceed with the debit payment, or review the financing plans.
Also check your credit balance at AFIPthe due date of your next installment, and the date of the last installment payment.
That said, you can then be current with your tax contributions, and in a quick and simple way, you will have more time to dedicate to your business and make it grow more and more.
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