The economy is currently undergoing major changes. Giving rise to the emergence of micro, small and medium-sized companies, which need technical and financial support to stay afloat. It is in this sense that 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?
SME stands for Small and Medium BusinessThey are companies legally constituted from different branches of the economy such as services, industries, businesses, services, among others. They are characterized by a small number of employees, with an average volume of assets and revenues.
SMEs can be one or more people, but in limited numbers and with an enormous entrepreneurial strength.
There is also talk of mipima or MSMEs, which includes micro or small companies, can be up to a single person.
According to each country, the classification of SMEs is different; in the case of Argentina, the total value of sales for the year and the economic sector in which they operate are taken into account.
What do they offer?
Like any company, 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 attendance and services in any branch of commerce, for its immense communication capacity.
But its small structure represents a disadvantage, since limited attention to specific markets or the small number of customers, can be a latent risk of bankruptcy, to counter this situation SMEs must be aware of the expansion of their markets and their portfolio from clients.
What is the certificate necessary for?
To be able to take advantage of tax or fiscal benefits, consultancy and financing programs, all with the objective of advancing the company classified as SME.
As a creditor of the PME certificate, you will have access to financing for the purchase of electronic equipment and training plans, among others, as well as long-term financing through a credit line from BICE Banco de Inversión y Comercio.
It will have financial, economic and technical assistance to access credits with preferential rates through the Reciprocal guarantee companies SG and direct assistance from SME specialists 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 register as an SME, a voucher or document proving the nature of an SME will be obtained from the Ministry of Production and third bodies and institutions.
To register that accredits the company as an SME, you must:
- You have a Unique Tax Identification Code (CUIT)
- Has tax code 2 or higher
- Affiliate with Remote Procedures (TAD)
- Registration in Monotax or General Scheme
CUIT is obtained from Federal Administration of Public Revenue, attending the corresponding agency according to the home address of each individual or legal entity.
The Tax Code Request is made through the company’s website AFIPWhen filling out the forms for this purpose, this key consists of a unique username and password, which allows you to conduct electronic transactions with AFIP, Federal Administration of Public Revenue.
Affiliation to Remote Procedures (TAD) is done in Remote Procedures, you must have a tax code level 2 or higher.
Monotax registration is done on the AFIPFor this, it is necessary to have a CUIT and Tax 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 website of the AFIP, the Tax Code of the Legal Representative is required in the case of Legal Entities, its purpose is to request registration in the respective taxes and / or regimes.
Steps to follow
- Enter into Federal Administration of Public Revenue AFIP
- Select «Tax Code».
- Select the «Enable Service» option.
- Click on the AFIP logo
- Select «Interactive Services»
- Click on «PYMES categorization and / or benefits request».
- Click «Confirm».
- Get out
- Enter the Tax Code again
- Click on “New” and review the information presented to you
- Fill in all the fields requested according to your statute of Legal Representative, Exempt from VAT or Monotributista
- Click «Submit»
- Access the AFIP e-window where successful confirmation of registration will be displayed
- Check the TAD notification tray where the SME Certificate is to be sent.
- Download and print
If you do not receive the TAD certificate, follow these steps:
- Enter the site Ministry of Production and Labor
- Insert the Unique Tax Identification Code (CUIT) in the corresponding field
- Enter the transaction number, it is the registration number as PyM in AFIP
- Press the «download» button
- Among the benefits provided by registration and certification as an SME:
- Pay VAT 90 days after the event, even if the declaration is made monthly.
- Compensation between 100% and 60% of check tax on payment of earnings
- Payment and presentation of the Presumed Minimum Income Tax is eliminated, under the condition of «Exemption from the Presumed Minimum Income».
- Ease of procedures for requesting a VAT non-retention certificate
- Other benefits of investments in infrastructure works or tangible capital goods
When we talk about the limitations of an SME, we talk about its disadvantages, in addition to those mentioned briefly in the previous paragraphs, we have that its operations can present frequent and evolutionary changes, and its processes are emergent, they do not have a great financial backing, which limits taking risks on large projects.
Due to their adaptability to changes, they must be attentive to control, as they can become an operational maze, the organizational climate must be kept in constant review, since the proximity between members can convert work activities at personal levels.
They tend to lose control with financial resources because they tend to move under confidence, investment in advertising campaigns can be reduced due to the low flow of resources and the loss of potential customers or consumers.
Question 1: Is there a difference in the Small and Medium Business Register?
Answer 1: The SME registration procedure at AFIP is the same, it is there where the categorization between micro, small or medium companies will be made.
Question 2: When is the VAT exemption declared?
Answer 2: Filling in the registration form.
Question 3: When can you start enjoying benefits as an SME?
Answer 3: During registration with AFIP, you will start to enjoy the benefits.
Question 4: Registration has been completed and the Certificate has not yet arrived, what should I do?
Answer 4: It is possible that the platform that emits them, has collapsed, with a reasonable time to receive it.
Question 5: How long is the Certificate valid for?
Answer 5: The validity of the certificate is printed on it and corresponds to the last day of the fourth month after the end of the financial year. The renewal must be done in the same month.
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