Relevant News

• Health Emergency (COVID -19).
• Deferral and exceptionsNew Circulation permit during sanitary lock-down
• Emergency Assistance Program to Work and Production
• Exchange control and purchase of foreign currency
• Deferral of taxes and affidavits
• Oil barrel Prices ("barril criollo”)

LEGISLATION

Decrees Nº459/2020 and 493/2020 – Deferral of Mandatory Isolation

Decree Nº459/2020 issued by the Executive Branch deferred the social, preventive and mandatory isolation until May 24th, 2020 together with all complementary regulations regarding mandatory isolation first issued by Decree Nº297/2020, allowing Chief of Staff to analyze and authorize the performance of certain activities as exceptions to the isolation in certain geographical areas as may be requested by governors. Among other regulations, the Decree also sets forth that public transportation is limited for essential workers, that workers of more than 60 years, pregnant women and those included in risk groups and those whose presence at home should be essential for the care of children are exempted to attender their workplace and the prohibition of foreigners to entry the country during the mandatory isolation. On May 25th, 2020, the Executive Branch issued Decree Nº493/2020 and deferred mandatory isolation until June 7th in the same terms as Decree Nº459/2020.

Decree Nº 487/2020 – Prohibition of Dismissals and Suspensions

Decree Nº487/2020 issued by the Executive Branch defers the prohibition of dismissal without cause and/or dismiss or suspend workers due to reasons of lack or diminution of work or force majeure events (except for suspensions decided in accordance with Section 223 bis of Labor Contract Law) for a 60-day additional period of time counted as from the expiration date of former prohibition ordered under Decree Nº329/2020. The Decree also sets forth that dismissals and suspensions decided contravening Decree’s dispositions will produce no effects.

Emergency Assistance Program to Work and Production

1. Administrative Decision Nº702/2020 adopts recommendations of the Evaluation Committee (the, “Committee”) of the Emergency Assistance Program to Work and Production Program (the, “Program”) which include, among others, parameters for calculating the complementary salary to be paid by Government to workers of companies eligible under the Program and adds as a consideration for companies with more than 800 employees the condition of non-cooperative or null taxation jurisdictions. Also and regarding companies with more than 800 workers applying for benefits under the Program, the Committee defines that restrictions defined under act Nº4 (including among other, prohibition to distribute dividends arising from fiscal years closed as from November 2019) will apply to the ongoing period and the 12 months following the period in which the benefit was granted, included for results accumulated from previous periods.
2. Administrative Decision Nº721/2020 adopts recommendations of the Committee which among other aspects, include new activities eligible for applying for the benefit of the complementary salary to be paid by Government including support services for the extraction of oil and gas and mining activities, subject to the requirements and conditions applicable to this benefit and allows the granting of such benefit to companies of more than 800 workers which perform the activities now authorized under this recommendation. The recommendation also sets forth that companies which activity started during 2020 shall be considered “critical” and therefore comply with the requirements to be met in order to obtain the benefits under the Program.
3. Administrative Decision Nº747/2020 adopts recommendations of the Committee deferring benefits of complementary salary and contributions to the social security system regarding salaries corresponding to May, 2020.
4. Resolution Nº4716/2020 issued by Tax Enforcement Authority (“AFIP”) allows employers to register themselves between May 14th and May 21st, for the obtainment of the benefits related to reduction or deferral of payment of contributions of social security system corresponding to May, 2020.
5. Administrative Decision Nº817/2020 adopts recommendations of the Committee setting forth that all companies (and not only those exceeding 800 workers on February 29th, 2020) which were granted the benefit of the complementary salary corresponding to May 2020, must comply with the requirements set forth in point 1.5., II, Act Nº4, which includes the prohibition of distributing dividends as of November 2019, access the exchange market for formation of foreign assets or acquiring public titles in ARS for their sale in USD abroad (“contado con liqui” operation), repurchase their stock, making payments to related companies or individuals located in low or null-tax jurisdictions. Regarding companies with more than 800 workers on February 2020 which were granted the complementary salary corresponding to may 2020, the Recommendation extends the period of time of application of said requirements to 24 months.
6. Resolution Nº4719/2020 issued by AFIP regulates the procedure for those employees who were willing to return the benefit of complementary salary granted under the Program.
7. Resolution Nº4720/2020 issued by AFIP, allows employers willing to obtain the benefits under the Program to register themselves with AFIP until May 26th.
8. Administrative Decision Nº887/2020 adopts recommendations from the Committee, which determines the parameters to be followed for the payment of the complementary salary by Government for those employees with more than one job, a limit of ARS 250,000 for salaries being eligible for the complementary salary benefit, that the benefit of deferral of social contributions to the social security system corresponding to May 2020 should apply to all companies which perform the activities incorporated under the Program.

Administrative Decision Nº897/2020 – New Certificate for Circulation

Administrative Decision Nº897/2020 issued by the chief of Staff sets forth that all certificates named “Unique Certificate for Circulating – Emergency COVID 19” shall expire on May 30th, 2020 and that their holders shall obtain a new certificate as provided therein.

Decree Nº425/2020 – Prohibition of Closing Bank Accounts

Decree Nº425/2020 issued by the Executive Branch defers until June 30th, 2020 the provisions set forth by Decree Nº312/2020 regarding the suspension of bank’s obligation to: 1) close banking accounts and 2) request to employers applying for loans, a sworn statement stating they do not have debts with the social security system.

Disposition Nº290/2020 – Remote Conciliatory Processes Before the SECLO

Disposition Nº290/2020 issued by the Ministry of Labor allows to conduct hearings of conciliatory procedures before SECLO by means of virtual platforms duly authorized by the Ministry

Resolution Nº408/2020 – Payment of Complementary Salary by Government

By means of Resolution Nº408/2020, Ministry of Labor provides that employers who had paid to their employees the salary or compensation under Art. 223 bis of Labor Act corresponding to April 2020 and such employees had received the complementary salary from government under the Program and the amount received by them exceeded their monthly payment, are authorized to charge the difference to the payments to be done by employers to employees corresponding to may 2020

Resolution Nº4711/2020 – Procedure for Implementing Benefits Related to the Social Security System

Resolution Nº4711/2020 issued by Tax Enforcement Authority (“AFIP”) regulates the mechanism applicable for employers who had been granted the reduction on social security contributions benefit and sets forth the deferral until July 2020 (setting forth different days according to tax payer’s tax identification number) of payment of such contributions corresponding to April 2020

Resolution Nº4712/2020 – General Deferral of Payment of Contributions to the Social Security System

Resolution Nº4712/2020 issued by Tax Enforcement Authority (“AFIP”) sets forth a general deferral until May 18, 19 and 20 (depending on tax payer’s tax identification number) for the submission of sworn statements and payment of contributions to the social security system.

Resolution Nº4714/2020 – New Dates for Submitting Income Tax Sworn Statements and Payment

By means of Resolution Nº4714/2020, Tax Enforcement Authority (“AFIP”) defers until the last week of May 2020 the submission of sworn statements corresponding to income tax and payment for those companies which financial statements were finalized on December 2019. The Resolution also modified the schedule for submitting and paying VAT corresponding to April 2020. Finally, the Resolution sets forth an exceptional payment plan valid until June 30th 2020 for obligations related to income tax which will be payable in up to three installments with a down payment equivalent to 25% and with the applicable interest rate.

Resolution Nº4710/2020 – New Export Reference Values

By means of Resolution Nº4710/2020, Tax Enforcement Authority (“AFIP”) sets forth new precautionary reference values for the export of goods included in the Mercosur nomenclature according to the procedure set forth under said Decree. The Resolution also abrogates Resolution Nº4,161.

Resolution Nº4717/2020 – New Transference Prices Regime

By means of Resolution Nº4717/2020, Tax Enforcement Authority (“AFIP”) gathers in one regulation the informative regime regarding transference prices in international operations, whether for exports or imports, for income tax purposes and abrogates former Resolution Nº1122. The Resolution applies regarding exports and imports executed between independent parties, related parties (as defined in the Resolution) and with natural persons or companies located in non-cooperative or in low or no-tax jurisdictions

Resolution Nº4721/2020 – New Date for Payment of Taxes by Natural Persons

By means of Resolution Nº4721/2020, Tax Enforcement Authority (“AFIP”) defers until July 2020, natural persons’ and states’ obligation to submit sworn statements and pay income tax, tax on personal assets and scheduler tax.

Resolution N°22/2020 - Information Regime for Simplified Corporations

By means of Resolution N°22/2020, the Superintendence of Corporations ("IGJ" for its acronym in Spanish) sets forth an information channel together with the Property Registry, for the purposes of obtaining information related to real estate operations performed by companies registered as Simplified Corporations (“SAS”) (within the IGJ or any other jurisdiction) in their capacity of acquirers, creditors or assignees of the properties. In the case IGJ confirms that the properties are not affected to the development of the company´s economic activity, it will promote, in coordination with the Public Ministry, legal actions to declare the non-enforceability of the legal personality of the company and of the assets of which it was the owner or even the dissolution and liquidation of the company

Resolution N°23/2020 - Simplifies Corporations Bylaws

Resolution N° 23/2020 of the Superintendence of Corporations ("IGJ" for its acronym in Spanish) provides a new standard draft of bylaws for Simplified Corporations (“SAS”)

Administrative Decisions N° 903/2020, N° 904/2020, 909/2020, 919/2020, 920/2020, 941/2020 and 942/2020: New Exceptions to Mandatory Isolation

Administrative Decisions N° 903/29020, 904/2020, 909/2020, 920/2020 and 942/2020 issued by the Chief of Staff set forth new exceptions to the social, preventive and mandatory isolations in the provinces of Mendoza, La Pampa and in certain jurisdictions of the province of Buenos Aires.

Resolution N°4725/2020 - Extension Regarding Income Tax

By Resolution N° 4725/2020, Tax Authority deferred until July 3, 2020 the due date for presentation of income tax affidavits

Resolution N°228/2020 - Extension for Unemployment Benefit

By Resolution 228/2020, the Ministry of Labor, Employment and Social Security extended until August 31, 2020 the due date for unemployment benefits of Law No. 24,013 and Law No. 25,371 occurring between May 1, 2020 and July 31, 2020, previously extended by Resolution 260/20

Ministry of Transport - Sanitary Protocol for Freight Transport

The Ministry of Transport approved two sanitary protocols for transports of general freight and transports of cereals, oilseeds and related products

BCRA Communication N°7030/2020 – New Exchange Control and Limits

Communication N° A 7030/2020 issued by the Central Bank of the Argentine Republic (“BCRA”), published on June 1, 2020, provides new controls and limitations to the acquisition of foreign exchange and access to the Single and Free Exchange Free Market (“MULC”). Subjects seeking to access MULC for the operations provided therein, must request prior authorization of the BCRA, unless they submit an affidavit at the time of access to the MULC providing the following: (a) all of its foreign currency holdings in the country are deposited in accounts within financial institutions and have no liquid external assets available, and (b) undertakes to settle in the MULC, within 5 working days, funds received abroad originated in the collection of loans granted to third parties, term deposits or sales of any type of asset, when the asset has been acquired, the deposit has been constituted or the loan granted after May 28, 2020. The Communication also provides, with some specific exceptions provided therein, that access to MULC up to June 30, 2020 for the payment of import of certain goods or the cancellation of import debts, shall be previously authorized by BCRA unless the subject: (a) submits an affidavit providing that the total amount of the payments associated with its imports of goods through the MULC during the fiscal year 2020 (including this payment), does not exceed the amount for which the subject would have access to MULC taking into account imports of goods listed on its name in the SEPAIMPO system officialized between January 1, 2020 and the previously day to access to MULC, (b) evidence the documentation to comply with the remaining requirements set forth by the exchange regulations. The Communication also provides BCRA’s prior authorization for access to MULC shall also be required until June 30, 2020 for the cancellation of financial debts abroad with affiliated parties. Finally, the regulation extends to 90 days the period set forth in point 3 of Communication A 7001, provided that subjects who intend to access MULC without BCRA’s prior authorization, shall submit an affidavit stating that (a) no operations have been made in the country involving sales of securities settled in foreign currency or transfers of same abroad during the past 90 days (“contado con liqui” operation), and (b) its commitment not to arrange sales of securities settled in foreign currency or transfers of same abroad during the following 90 days (“contado con liqui” operation).

LATEST NEWS IN THE HYDROCARBON SECTOR

Decree Nº488/2020 – Crude Oil fixed Price

Decree Nº488/2020 issued by the Executive Branch sets forth a fixed price of USD 45 per barrel for the Medanito crude oil type, which price shall be adjusted for each type of crude oil considering its quality and delivery point as usual in the oil and gas market. This new price shall be valid from May 19th, 2020 and until December 31st, 2020, but will cease its effects in case crude oil’s international prices should exceed the value of USD 45, as modified by the authority who is entitled to modify the price fixed by Decree on a quarterly basis and also control that no collusive or monopoly behavior from oil companies, refineries and traders. The Decree also sets forth that during the validity of the new price of crude oil, oil companies shall maintain their activity and production levels registered during 2019, considering the negative effects of COVID-19 and in accordance with art. 31 of Hydrocarbons Act, and maintain their contracts with regional suppliers and the work plant operation they had at December 31st, 2019. During Decree’s validity, oil companies shall not be allowed to access the exchange market for formation of foreign assets or acquiring public titles in ARS for their sale in USD abroad (“contado con liqui” operation). In addition, the Decree sets forth refineries and traders’ obligation to acquire their total demand for crude oil from local companies and the prohibition, which also applies to integrated companies, of importing products which were available in the local market and/or regarding which existed the effective possibility of processing them locally. Additionally, the Decree sets forth new aliquots for certain goods included in Annex 1 of the Decree (including among other, oils, LPG) and aliquots for the export of the goods detailed in the Decree which are determined considering the international price of crude oil. Finally, the Decree also modifies the amounts of the fines applicable under Hydrocarbons Act Nº17,319.

Province Of Neuquén - Administrative Proceedings for Calculation of Easement Compensations

By Resolution N° 313/2020 the Secretary of Territorial Development and Environment secretary of the Province of Neuquén approved the administrative proceeding for the calculation, liquidation and collection of the easement compensation regarding public owned land in which hydrocarbon activities are being developed.

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