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Legal Newsletter - June 2020

Relevant News

  • New Lease of Property Law.
  • Health Emergency (COVID-19). Deferral and exceptions.
  • Exchange control and purchase of foreign currency.
  • Labor Emergency and deferral of prohibition of dismissals and suspensions.
  • Tax deferrals.

LEGISLATION

Law Nº 27.551 – Lease of Property

Law N°27.551 modifies certain provisions of the National Civil and Commercial Code regarding lease of property. Among others, the Law provides: (i) maximum amount of guarantee deposit equal to one (first) month of rent for habitational lease, to be reinstated in cash to tenant simultaneously to the return of the property, equal to the last month of rent; (ii) minimum term of the lease equal to three years; (iii) landlord may compensate rent payments with unpaid expenses corresponding to landlord; (iv) which charges and contributions related to the property correspond to landlord or tenant; (v) early termination by tenant require a 30 days prior notification to landlord, and in case of habitational lease, landlord shall have no right for compensation if such notice is given with at least a 90 days prior term, or in case renewal of the contact is not agreed by the parties during the last three months of contract; (vi) several types of valid guarantees to be offered by tenant; (vii) price of rent may be adjusted, and in case of habitational lease, price shall be adjusted on an annual basis according to the IPC and RIPTE index to be published by the Central Bank of Argentina; (viii) landlord shall register lease contract with Tax Authority (AFIP). The Law also provide alternative methods for resolution of conflicts.

Decrees Nº520/20 and 576/20 – Modifications to Social, Preventive and Mandatory Isolation

By means of Decree N°520/2020, the Executive Branch provided the following, among others, in protection of public health within the sanitary emergency: (i) The obligatory Social, Preventive and Mandatory Distance (the “DSPO”), as set forth in the Decree, until June 28, 2020 for all people residing or in transit within the jurisdictions set forth in the Decree. Transit outside such jurisdictions shall be prohibited, with the exception for those granted with a Habilitation Certificate (“Certificado Único Habilitante para Circulación - Emergencia COVID-19”). Industrial and commercial activities shall only be permitted as long as an operating protocol is approved by the provincial public health authority. (ii) Deferring of the “Social, Preventive and Mandatory Isolation” (the “ASPO”) until June 28, 2020 for all people residing or in transit within jurisdictions not meeting the requirements for the DSPO (such as the City of Buenos Aires and the Metropolitan Area of Buenos Aires -AMBA-, among others). Public officers not included within the exceptions to ASPO, shall continue with their tasks and duties remotely from their domiciles. (iii) Deferring until June 28, 2020 the closure of national borders. Decree N°576/2020 also issued by the Executive Branch, defers previously referred Decree N°520/2020 until June 30th 2020, and also provides measures regarding social distancing (DSPO) applicable for all people residing or in transit within the jurisdictions complying with the sanitary parameters set forth in the Decree, until July 17th, 2020. Regarding the jurisdictions not complying with said sanitary parameters (such as the AMBA, Chaco, General Roca in Rio Negro and urban agglomerate on Neuquén), the Decree defers the isolation measures (ASPO) as originally provided in Decree N°297/2020, until July 17th, 2020, and provides a detail of the essential permitted activities and other exceptions to the ASPO (suspending previous exceptions not provided herein), as well as a detail of prohibited activities. Closure of borders is also deferred until July 17th, 2020, among others.

Administrative Decisions N° 966/20, 965/20, 975/20, 968/20, 1018/20, 1056/20 and 1146/20 – New exceptions to Social, Preventive and Mandatory Isolation

Administrative Decisions N°966/2020, 965/2020, 975/2020, 968/2020 and 1018/2020 issued by the Chief of Staff, set forth new exceptions to the Social, Preventive and Mandatory Isolation within the Provinces of Salta, Santa Fe, La Rioja, Mendoza, Neuquén, Cordoba and within certain jurisdictions of the Province of Buenos Aires.

Communication “B” 12020/2020 – New Procedure for access to MULC for payment of imports

By means of Communication “B” 12020/2020, the Central Bank (“BCRA”) establish a standard procedure in order to facilitate the procedures and requirements for requesting BCRA’s prior authorization, as required by BCRA’s Communications A7001 and 7030, for the acquisition of foreign currency and access to the Single and Free Exchange Market (MULC), for operations of payment of import of goods.

Communication “A” 7042/2020 – Access to MULC

By means of Communication “A” 7042/2020 the Central Bank of the Argentine Republic (“BCRA”) partially amended Communications “A” 7001 and 7030. Among others amendments, the Communication provides: (i) that an amount of up to US$100.000 is excluded from the requirement of having no liquid external assets available in Argentina in order to allow access to the Single and Free Exchange Free Market (“MULC”), and provide certain clarifications and exceptions to said requirement; (ii) an increase of up to US$1 Million of the maximum amount of import debts previously provided as an exception to the requirement of submitting an affidavit for access to the MULC for the payment of import of certain goods or the cancellation of import debts as provided in Section 2.1 of Communication “A” 7030; (iii) up to June 30th 2020, the affidavit providing that 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”) in order to access MULC, shall be considered made as of May 1st, 2020. By means of Communication “A” 7052, the Central Bank of the Argentine Republic (“BCRA”) amends

Communication “A” N° 7052 – Access to MULC

Communication “A” 7030 regarding the following, among others: (i) extends the validity of the requirements provided therein for access to MULC in order to pay import of goods to July 31th, 2020; (ii) adds as a new exception to the obligation of submitting the affidavit provided in Section 2.1 of Communication 7030, the payments of imports of goods corresponding to operations boarded as of July 1st, 2020 or not having arrived to Argentina before that date.

General Resolution N° 843/2020 – New Foreign Exchange Regulations

Among other provisions, General Resolution N° 843/2020, the National Securities Commission (“CNV”) sets forth a minimum term of 5 working days (“parking”) for the liquidation of foreign negotiable securities in the local exchange market as of the date such negotiable securities are deposit locally (“contado con liqui de ingreso”).

Decree N° 528/2020 – Deferral of Labor Emergency

By means of Decree N°528/2020 the Executive Branch defers for a 180-days period the labor emergency declared by Decree N°34/2019, and consequently, dismissals with no justified cause during such term, shall imply employee’s right for double compensation.

Decree N°529/2020 - Employee´s Suspensions

By means of Decree N°529/2020 the Executive Branch set forth that the time limits regarding suspension of employees under Sections 220, 221 and 222 of the Labor Law N°20.744, shall not apply to suspensions for lack of work and force majeure under Section 223bis of same. Such suspensions can be extended until de end of the Social, Preventive and Mandatory Isolation.

Resolution N°475/2020 - Employee´s Suspensions

By means of Resolution N°475/2020 the Ministry of Work Labor and Social Security defers for a 60-days period the validity of the Resolution N°397/2020, regarding the procedure for employee´s suspensions under section 223bis of Labor Law N°20.744.

Supreme Court Agreements – Extraordinary Judicial Recess

By means of Agreements N° 18/2020 and 25/2020, the Supreme Court of Justice defers the extraordinary judicial recess until July 17th, 2020, with the exception of certain federal jurisdictions set forth under Agreements 17/2020, 19/2020, 20/2020, 23/2020 and 24/2020 in which the extraordinary judicial recess has been lifted.

Supreme Court Agreements – Suspension of Winter Judicial Recess

By means of Agreement N°21/2020, the Supreme Court of Justice suspends July judicial recess for the year 2020 for National and Federal Courts

General Resolution N°4736/2020 and Nº 4750/2020 – Deferral of Extraordinary Tax Recess

By means of General Resolution N°4736/2020 and 4750/2020, Tax Enforcement Authority (AFIP) defers the extraordinary tax recess until July 17th, 2020.

Decree 577/2020 – Suspension of deadlines within Administrative Proceedings

By means of Decree N°577/2020, the Executive Branch suspends, from June 29th, 2020 to July 17th, 2020, the course of administrative deadlines within administrative proceedings.

Decree 511/2020 – New Family Emergency Benefit

By means of Decree N°511/2020 the Executive Branch (the “Decree”) set forth a new payment of ARS 10,000 to be settled in June 2020 as a Family Emergency Income in the terms provided under Decree Nº310/2020 and complimentary regulations. The Decree also modifies the referred Decree Nº310/2020 regarding the subjects of such payment and its requirements.

Decree 543/2020 – Prohibition to Interrupt Public Services

By means of Decree 543/2020 the Executive Branch defers for an additional 180-days period the term set forth in Section 5 of Law 27.541 during which the Executive Branch has the power to maintain and review natural gas and electricity tariffs subject to federal jurisdiction. The Decree also extends the prohibition to suspend public services (such as electric energy, gas, water, phone, internet and cable) to certain consumers in case of lack of payment of up to 6 invoices, with expiration term as of March 1st 2020

Resolution 4740/2020 – Precautionary Measures against PyMES

By means of General Resolution N°4740/2020 Tax Enforcement Authority (“AFIP”) extends until July 31, 2020 the suspension of precautionary measures against small and medium companies (“PyMES”) set forth by Resolution 4557/2019.

Resolution 4743/2020 – Deferral for Presentation of Financial Statements

By means of General Resolution N°4743/2020, Tax Enforcement Authority (“AFIP”) extends until August 18, 2020 the expiration date for presentation of financial statements for companies with financial year ending on November, December 2019 and January 2020.

Decree N° 569/2020 – Deferral to adhere to Payment Plan

By means of Decree N°569/2020, the Executive Branch defers until July 31, 2020 the term in which small and medium companies (“PyMES”) can adhere to the payment plan established in Title IV, Section 8 of Law 27541.

Decree 544/2020 – Deferral of Prohibition of Closing Bank Accounts

By means of Decree 544/2020 the Executive Branch defers until December 31th 2020 the suspension of bank’s obligation to close banking accounts, decide the disablement and apply fines under article 1 of Law 25,730. The Decree also suspends until December 31th 2020 credit institution’s obligation to request employers sworn statement stating they do not have debts with the social security system.

Administrative Decision N°963/2020 and Nº 1133/2020 – Emergency Assistance Program to Work and Production

By means of Administrative Decisions N°963/2020 and N°1133/2020, Chief of Staff incorporated the recommendations issued by the Evaluation Committee of the Program to Work and Production (the “Program”) and provided the continuity of the Program for employers and employees affected by the health emergency. The companies included in the Program, shall not distribute dividends for the fiscal periods closed as of November 2019, repurchase their shares, acquire securities in argentine pesos for sale in foreign currency (“contado con liquid”) or modify the residence, location or domicile of tax jurisdiction.

Join Resolution N° 4/2020 – New Protocol for Automotive Cargo Transportation

Join Resolution N°4/2020 approved a new protocol for automotive transport of general and dangerous cargo through national roads within the coronavirus pandemic.

Please, do not hesitate to contact us in case you have any further questions or comments:

María Victoria Tiscornia
Senior Associate
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+54 11 4326-7777

Leandro Martin Orts
Senior Associate
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+54 11 4326-7777