Currently, the economy has big changes. Giving rise to the emergence of micro, small and medium-sized companies, which require technical and economic support to stay afloat. It is in this sense that lies the importance of knowing What is SME? How to get the certificate? What will allow them to obtain benefits for their continuity in the market?
What is it?
PyME corresponds to the acronym of Small and Medium Business, are legally constituted companies, from different branches of the economy such as services, industries, shops, services, among others. They are characterized by a reduced number of employees, with a medium volume in their assets and income.
SMEs can be made up of one or several people, but in limited numbers and with enormous entrepreneurial strength.
It is also talked about MSME either MSMEwhich includes micro-enterprises or smaller companies, can be up to one person.
Depending on each country, the classification of SMEs is different. In the case in question in Argentina, the total amount of sales for the year and the economic sector in which they operate are taken into account.
What are you offering?
Like any business, there are advantages and disadvantages.
SMEs do not escape these situations, among their advantages we can say that they enjoy the ability to adapt very easily to the changes and needs of the economy, due to or thanks to their small organization, they can be more direct in the attention and services in any rank of trade, for his immense ability to communicate.
But its small structure represents a disadvantage, since the limited attention to specific markets or the number of reduced clients, could be a latent risk for bankruptcy, to counteract this situation, SMEs must be attentive to the expansion of their markets and of your client portfolio.
What is the certificate necessary for?
In order to enjoy fiscal or tax benefits, consulting and financing programs, all with the objective of creating progress in the company categorized as SMEs.
Being a creditor of the SME certificate, you will have access to financing for the acquisition of electronic equipment and training plans, among others, as well as long-term financing through a line of credit from the BICE Banco de Inversión y Comercio.
It will have both financial, economic and technical advice, to access credits with preferential rates through the Mutual Guarantee Societies SG, and direct attention from SME experts to diagnose risk situations and create a mitigation or elimination plan.
How to obtain the SME certificate?
At the end of the registration in the AFIP registry as SMEs, a receipt or document certifying the character of SMEs will be obtained before the Ministry of Production and third-party organizations and institutions.
Requirements
In order to carry out the registration that accredits the company as an SME, it must:
- Possess Unique Tax Identification Code (CUIT)
- Have Fiscal Code 2 or higher
- Be affiliated with Remote Procedures (TAD)
- Registration in the Monotribute or General Regime
The CUIT is obtained in the Federal Administration of Public Revenuesassisting the corresponding agency according to the domiciliary address of each natural or legal person.
The Fiscal Code Request is made through the electronic page of the AFIPcompleting the forms for this purpose, this key is composed of a unique username and password, which allows you to carry out electronic transactions with the AFIP, Federal Administration of Public Revenues.
Affiliation to Remote Procedures (TAD) is done in Distance Proceduresit is required to have Fiscal Code level 2 or higher.
Registration in the Monotributo is made on the electronic page of the AFIPFor this, you must have a CUIT and Fiscal Code, with this condition the payment of taxes is allowed quickly and easily, among other procedures.
Registration in the General Regime is made on the electronic page of the AFIPTax Code of the Legal Representative is required in the case of Legal Entities, its objective is to request registration in the corresponding taxes and/or regimes.
Steps to follow
- enter to Federal Administration of Public Revenues AFIP
- Select “Fiscal Key.”
- Select the «Enable Service» option.
- Click on the AFIP logo
- Select “Interactive Services”
- Click on «SMEs Request for Categorization and/or Benefits».
- Click on «Confirm».
- sign out
- Enter again with the Tax Code
- Click on «New» and review the information that is presented
- Complete all the fields that are requested according to your status as Legal Representative, VAT Exempt or Monotributista
- Click on «Submit»
- Access the AFIP e-window where the successful confirmation of registration will be displayed
- Review the TAD notification tray where the SME Certificate should be sent.
- Download and print it
If you do not receive the TAD Certificate, follow the steps below:
- Go to the website of the Ministry of Production and Labor
- Place the Unique Tax Identification Code (CUIT) in the corresponding field
- Place the Transaction Number, it is the registration number as PyM in AFIP
- Press “Download”
Benefits
- Among the benefits provided by registration and certification as SMEs:
- Pay the VAT 90 days after it was caused, even when the declaration is made monthly.
- Compensation between 100% and 60% of the tax on the check in the payment of earnings
- The payment and presentation of the Minimum Presumed Income Tax is eliminated, through the condition of «Exemption to the Minimum Presumed Income».
- Ease of application procedures for the VAT non-withholding certificate
- Other benefits from investments in infrastructure works or tangible capital goods
limitations
When we talk about the limitations of an SME, we talk about its disadvantages, in addition to those briefly mentioned in previous paragraphs, we have that its operations could present frequent and evolutionary changes since its processes are emerging, they do not have large financial backing, which limits them. Take risks on big projects.
Due to their adaptability to changes, they must be alert to control as they could become an operational labyrinth, the organizational climate must be kept under constant review, since the closeness between members could convert work activities to personal levels.
They tend to lose control with financial resources because they tend to move under trust between one another, investment in advertising campaigns can be diminished due to the low flow of resources and lose potential customers or consumers.
Frequent questions
Question 1: Is there any difference in the Small or Medium Business Registry?
Answer 1: The procedure for registering the SME in the AFIP is the same, it is there where the categorization between micro, small or medium-sized companies will be issued.
Question 2: When is the VAT exemption declared?
Answer 2: By completing the registration form.
Question 3: When can you start enjoying the benefits as a SME?
Answer 3: During the Registration with the AFIP, you will begin to enjoy the benefits.
Question 4: The registration is complete and the Certificate has not yet arrived, what do I do?
Answer 4: It is possible that the platform that emits them is collapsed, taking a reasonable time to receive it.
Question 5: What is the validity of the Certificate?
Answer 5: The validity of the certificate is printed on it and corresponds to the last day of the fourth month after the closing of the fiscal year. The renewal must be done in the same month.