Good Practices in Social Security. Single portal for monotax contributors (monotributistas) A case of the Federal Administration of Public Resources

Transcription

1 Good practice in operation since: 2017 Good Practices in Social Security Single portal for monotax contributors (monotributistas) A case of the Federal Administration of Public Resources Federal Administration of Public Resources Argentina Published

2 2 Summary Single tax is an option designed for self-employed workers to pay contributions and taxes in a simplified way. Social security (retirement and health) and tax (VAT and income tax) contributions are collected together as a fixed monthly fee. To join the scheme, one has to comply with billing parameters including business surface area, electricity consumed and rental. There are 3,373,712 single-tax contributors registered in Argentina. The Federal Administration of Public Resources (Administración Federal de Ingresos Públicos AFIP) developed a website exclusively for self-employed workers hosted on the server It is a single portal, available 24 hours a day, which can be accessed in a user-friendly and intuitive way on tablets, smartphones or PCs via a username and password. Users can pay pension contributions online, update personal and family health coverage information, and issue electronic invoices for commercial transactions. The new platform encourages voluntary compliance obligations, simplifies communication with the tax authorities, reduces arrears and keeps the single-tax contributor informed about their social security and tax obligations. The issue or challenge What was the issue or challenge addressed by your good practice? Please provide a short description. Challenge To manage a large group of small-scale contributors with little awareness of the regulations and who are prone to telephone and on-the-spot queries. Single-tax contributions in tax and pension terms are marginal. Tax and pension contributions from 3.3 million single-tax contributors in Argentina amount to about one per cent of total government tax resources (taxes and pensions) but represent 60 per cent of the taxpayer census in the Argentine economy. Half of single-tax contributors do not have sufficient income to hire professional accounting services. Fulfilling obligations and accessing scheme rights requires in-depth knowledge of the norms and their development: laws ; ; , Decree 1/2010 and complementary norms. Single-tax payers are classified according to income levels or income earned from sales, leases or services, electricity consumed over the past year, business surface area and agreed rentals, from category A, with a gross annual income of up to 84,000 Argentine pesos (ARS) (5,153 US dollars (USD)), to category H, with a gross annual income of up to ARS 700,000 (USD 42,944) per year if services are provided; or up to ARS 1,050,000 (USD 64,417) in category K if movable property is sold. (Exchange rate of Banco de la Nación Argentina, 05/31/2017, ARS / USD 1).

3 3 A single-tax contributor has no import authorization and is not allowed to conduct three activities simultaneously or have more than three operating units. The maximum unit price for movable property sales is ARS 2,500 (USD ). In addition, an address for AFIP notifications is required. Regarding rights, single-tax workers who have paid monthly contributions are entitled to social security benefits such as universal child allowance, child disability allowance, and prenatal and school allowance. The amount and type of allowance depends on the person's contribution category. In the context of numerous criteria and the lack resources for accounting advice, the new portal provides an updated and low-cost website available to both the citizens who conduct business in the formal sector and the government in terms of working hours and recovery rate. Addressing the challenge What were the main objectives of the plan or strategy to resolve the issue or challenge? List and briefly describe the main elements of the plan or strategy, focusing especially on their innovative feature(s) and expected or intended effects. The tool is accessible 24/7 through the website through a username and password (tax code). The page lists messages regarding due dates, debt status, category change period and missing information required to process invoices or do business as single-tax contributors. It allows users to choose from various payment methods to process the monthly fee: online bank transfer, ATM, direct debit or credit card; the latter qualifies for a compliance reimbursement benefit, through which the contributor receives a rebate for every year of punctual payment. For contributors in the lower categories, cash payments are allowed; however, from November 2017, everyone will be obliged to make payments electronically. In addition to the website, services can be accessed through a mobile device (phone, tablet) with an internet connection to: join the single tax system; access information on compliance obligations, instructions and guidebooks; contact a virtual assistant; chat with an AFIP operator; ask for an appointment to carry out procedures; data modification if required; access contributor records and AFIP information; start the procedure to pay liabilities; request business cessation; authorize the issuance of invoices. Users can use the mobile application to synchronize due dates with the mobile s phone book and they can also chat directly with AFIP call centre operators if they require clarifications.

4 4 This application is currently available for android and soon for ios. This concept involves making the most of information and communication technology in order to: speed up administrative procedures; raise service quality ; reduce mistakes; eliminate paper documentation ; minimize on-site consultation. It covers the contributor s life cycle, from registration until the end. Targets to be achieved What were the quantitative and/or qualitative targets or key performance indicators that were set for the plan or strategy? Please describe briefly. The aim was to redefine the AFIP-single-tax contributor relationship to favour easy compliance. The project took seven months from design to implementation, and the focus was on user needs. Users were interviewed and surveyed on content and the user-friendliness and intuitive design of the portal and the app. The process involved continuous feedback. One of the objectives was to improve compliance ratios. The site alerts about debts allow the user to choose the means of payment, including payment plans for debt financing. Communication is transparent. The single-tax contributor can control payments if these were correctly registered with the AFIP and applied to the corresponding period. Another objective is to keep information up to date. Data entered by users can be reviewed and modified (level of sales or outlets where the activity takes place, etc.). Parameter changes to modify categories or to effect re-categorizations can be made in January, May and September. It is mandatory to do so in September even if no parameter is to be changed. Failure to comply with obligations regarding the payment method, the issuance of electronic invoices, address or re-categorization will result in the temporary termination of the Single-tax option accreditation until the taxpayer sorts out the situation (AFIP Resolution 3990). The implementation of the new app and web portal was coordinated by the Ministry of Modernization, under the slogan May the state serve the people. Evaluating the results Has there been an evaluation of the good practice? Please provide data on the impact and outcomes of the good practice by comparing targets vs actual performance, before-and-after indicators, and/or other types of statistics or measurements. In 2016, contact and assistance channels received a monthly average of 11,122 consultations regarding the single-tax contribution.

5 5 Procedures using plain language can be carried out in fewer steps, following a list of questions and answers. The site has streamlined payment procedures by 60 per cent (from seven steps to two) and the balance reallocation system by 80 per cent (from five steps to only one). It has also streamlined the re-categorization process by 58 per cent, from seven steps to three. Each process has an online assistance system and billing can be done on a mobile phone through the mobile invoicing service. The following procedures are available: simplified scheme membership for small-scale contributors: Alta Monotributo ( Single-tax registration ); small-scale contributor accreditation: Constancia de CUIT ( CUIT Certificate ); address change: Datos Domicilios ( Address details ); data modification (activity, number of dependants, etc.): Modificar datos del Monotributo ( Single-tax data modification ); quarterly re-categorization or data confirmation: Recategorización ( Recategorization ); registration cancellation: Baja Monotributo ( Single-tax termination ); securing payment credentials: Constancias/Credencial de pago ( Certificate/Payment certification ); visualise amount and monthly compliance obligation status (payments, balances, debt calculation): Estado de cuenta ( Account statement ); setting up address: Inicio/Domicilio Fiscal Electrónico ( Home/fiscal online address ); issuing invoices online: Factura Electrónica ( Online invoice ); registration as an employer: Voy a tener empleados ( I will have employees ). AFIP Resolution 4063-E stipulated the web and application validity. Lessons learned Based on the organization s experience, name up to three factors which you consider as indispensable to replicate this good practice. Name up to three risks that arose/could arise in implementing this good practice. Please explain these factors and/or risks briefly. To facilitate and promote compliance as well as to maintain high levels of satisfaction and trust, AFIP worked on providing online services to more than three million users, enabling simultaneous access, integrating accounting and payment systems, ensuring operability, security and data privacy. The new portal is only a month old but to date, traffic is high and intensive and compliance ratios have been substantially improved.