Relevant News

• Tax on Wealth
• Donations
• Health Emergency (COVID-19). Social preventive and mandatory distancing.
• Regulation of Knowledge Based Economy Lay
• Incentives to hydrocarbons’ production within the Province of Mendoza and Rio Negro

LEGISLATION

Law Nº 27,605 – Tax on Wealth

Law Nº 27,605 creates a one-time emergency “mandatory extraordinary contribution” (tax on wealth) to be paid by: (i) individuals and undivided successions residing in Argentina; (ii) Argentinean individuals residing in noncooperative jurisdictions or jurisdictions with low or no taxation; and (iii) individuals and undivided successions residing abroad. Those persons whose assets do not exceed $ARS 200 million are excluded from this contribution

Law Nº27,587 – Donations

Law Nº27,587 modifies the National Civil and Commercial Code and, among other aspects, sets forth that ineffective donations will be subject to collation action and therefore, in case the donation affected heirs’ legitimate portion the right created by means of donation shall not be extinguished but the difference will be compensated in money. The Law also modifies article 2386 of the Code by protecting third parties acting in good faith and against payment from reduction actions declared regarding registrable assets subject to in-rem rights granted by the donee.

Resolution Nº 2252/20 – Closure of National Borders

By means of Resolution Nº 2252/2020, the Executive Branch determined the closure of national borders from December 25th, 2020 until January 9th, 2021 due to the transmission of SARS-CoV-2 lineage B.1.1.7. and the increase in the number of coronavirus cases. Travelers authorized to enter Argentina must submit a sworn affidavit and a negative PCR test and comply with a 10-day quarantine upon entering the country.

Decree Nº1033/20 – Social, Preventive and Mandatory Distance and Isolation

By means of Decree N° 1033/2020, the Executive Branch decided the deferral until January 31st, 2020 of both the “Social, Preventive and Mandatory Distance” (the “DISPO”) and “Social, Preventive and Mandatory Isolation” (the “ASPO”), the closure of national borders and the prohibition of suspending phone and internet services in case of lack of payment. At the time of entry into force of this Decree, no jurisdiction was subject to ASPO.

Decree N° Nº966/20 – Deferral to Adhere to Payment Plan

By means of Decree N°966/2020, the Executive Branch defers until December 15th, 2020 the deadline for small and medium companies (“PyMES”) to adhere to the payment plan set forth under Title IV, Section 8 of Law Nº27,541 and to obtain the “MiPyME Certificate”.

Decree Nº1034/20 – Regulation of Knowledge Based Economy Law

Decree Nº1034/2020 issued by the Executive Branch (the “Decree”), regulates Law Nº27,506 regarding the Promotion of Knowledge Based Economy Regime (the, “Regime”). In addition, the Decree sets forth a 0% export right applicable to services exported by companies registered with the National Registry of Beneficiaries of the Knowledge Based Economy Regime. Finally, the Decree repeals the previous regulation of Law Nº27,506 (Decree Nº 708 of October 15, 2019).

Resolution Nº 1565/20 – REPRO II Program

By means of Resolution Nº 1565/2020, the Secretary of Labor sets forth that employers who receive the benefit granted under the "REPRO II Program", will not be entitled to carry out certain actions (e.g.: distribute profits, buy back their shares directly or indirectly) during the benefit’s duration and up to 12 months after its finalization. Additionally, the Resolution determines that those who had decided dismissals in contravention with Decree Nº329/2020 and its extensions, will not be able to access the benefit granted under the "REPRO II Program".

Decree Nº 2181/20 - Emergency Assistance Program to Work and Production

By means of Administrative Decision N°2181/2020, Chief of Staff incorporated the recommendations issued by the Evaluation Committee of the Program to Work and Production (“ATP Program”) which include, among others, the extension of the ATP Program regarding complementary salary and the deferral and reduction of payments of contributions to social security system and the granting of subsidized rate credits applicable to salaries corresponding to December 2020.

General Resolutions N° 4878/20 – Final Beneficiary Concept

By means of General Resolution N°4878/2020, Tax Enforcement Authority (“AFIP”) modifies General Resolution Nº 4,967 and provides a new and more accurate of the concept of “Final Beneficiary” and determines how to inform the chain of intermediate participants which credit the entities indirectly participating in informing entities. According to Resolution Nº4878/2020, submission of the information corresponding to years 2016, 2017, 2018 and 2019 must be fulfilled on or before December 30th, 2020.

Decree Nº 1060/20 – Reference Values Applicable to Exports

By means of Decree N° 1060/2020, the Executive Branch sets forth until October 4, 2021, an export duty applicable to exports of certain products provided therein.

Decree Nº 1020/20 – Natural Gas and Electricity Tariffs

By means of Decree Nº 1020/2020, the Executive Branch initiates the procedure for the integral review of the electric power and gas transport and distribution public service tariffs and defers for an additional 90-days period of time the current gas and electric power tariffs.

LATEST NEWS IN THE HYDROCARBON SECTOR

Decree Nº 965/20 - Deferral of Tax on Liquid Fuels

By means of Decree Nº 965/2020, the Executive Branch defers until December 16th, 2020 the increase of the aliquot of the tax on unleaded gasoline, raw gasoline and diesel previously determined by Decree Nº488/2020.

Province of Mendoza – Incentive Production Program

By means of Law Nº 9.279, the Executive Branch of the Province of Mendoza is entitled to create the “Mendoza Activates Hydrocarbons Program” (the, “Program”), which shall aim to develop, reactivate and increase the production of hydrocarbon activity in the Province of Mendoza. Under the Program, the Province will reimburse beneficiaries part of their investment related to the production in new wells or to the reactivation of existing wells by means of a non-refundable tax credit of up-to 40% of said investment, to be applied for the payment of provincial gross income tax and hydrocarbon royalties

Province of Río Negro - Regulatory Framework to Stimulate the Production of Hydrocarbons

The Legislative Body of the Province of Río Negro approved the Regulatory Framework for the Stimulation of the Production of Hydrocarbons by means of the Recovery of Low Productivity Wells and Inactive Wells (the, “Program”). Benefits under the Program consist in the reduction of the royalty payable on hydrocarbons’ production, exemption or reduction of the exploitation annual fee and exemption of up to 100% of the provincial gross income tax and stamp tax. To access the benefits under the Program, interested parties must submit a Recovery Plan with the Secretary of State of Energy of the Province of Río Negro until February 28th, 2021

Province of Santa Cruz - Modifications to the Oil Companies Registry

By means of Resolution Nº 37/2020, Santa Cruz Energy Institute creates, within its scope, the Provincial Oil Companies Registry and sets between July 15th and July 31st of each year the new date for submitting the annual renewal of the registration with the registry. In addition, the Resolution sets forth that for one time only, the registration for the 2020 period will be valid until July 31st, 2021.

Resolution Nº 448/20 – Abrogation of Resolution Nº437/2020

Resolution Nº448/2020 abrogates Resolution Nº437/2019 which called a national and international public bidding for the granting of a natural gas transport concession which included the design and construction of a pipeline from the Neuquina Basin up to Buenos Aires province and Litoral area under a special 17-year temporary regime in order to extract the production obtained from Vaca Muerta formations. In addition, the Resolution instruct the Sub-Secretariat of Hydrocarbons to conduct a technical and legal evaluation in order to consider the best alternative of constructing a new gas pipeline or amplifying the existing transport capacity, in order to evacuate the natural gas produced in the Neuquina Basin to AMBA and Litoral areas.

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