Relevant News

• Health Emergency (COVID-19). New preventive restrictions
• Investment Promotion Regime for Exports
• Official Demand to Increase Production
• Regulation of Promotion of Construction and Access to Housing Law
• Modifications to Income Tax Law
• Deferral of Prohibition for Dismissals and Suspensions
• Terms and Conditions regarding Authorization Procedure for Exports of Natural Gas

LEGISLATION

Decrees Nº 235/21 and 241/21 – New Restrictions due to Health Emergency until April 30th

By means of Decree Nº 235/2021, the Executive Branch sets forth new preventive measures in order to mitigate the spread of SARS-CoV-2. Among others, the Decree provides the following: (i) encouragement of home office, when possible; (ii) employers who require non-essential employee’s presence at work place within the AMBA shall provide private transport; (iii) the meeting of employees during labor brakes (for example, lunch) shall be prohibited in closed environments, and employer shall rearrange brake shifts for said regard; (iv) suspension of high-risk employee’ duty to assist to work place provided under Resolution Nº 207/20 is deferred; (v) Group tourism is suspended; (vi) Economic, industrial, commercial and service activities shall remain active as long as they have an approved sanitary protocol and the use of closed environments is limited to 50% of capacity; (vii) Occupancy of closed environment restaurants, bars, gyms, theatres, etc., shall be limited to 30% within High Risk Jurisdictions -as defined in the Decree-; (viii) Activities and reunions in private domiciles shall be limited to ten people, and prohibited within High Risk Jurisdictions; (ix) Activities and reunions in open public spaces shall be limited to twenty people within High Risk Jurisdictions, and restaurants and bars shall be closed between 11PM and 6AM; (x) Public transportation within the AMBA shall be limited to essential workers, who shall obtain a circulation certificate; (xi) Circulation between 12PM and 6AM shall be prohibited within High Risk Jurisdictions for non-essential workers and other excepted people; (xii) Closure of international borders. All of the above measures shall become in force as of April 9th 2021 to April 30th 2021. By means of Decree Nº 241/2021, the Executive Branch sets forth new preventive measures exclusively for AMBA jurisdictions. Among others, the Decree provides the following: (i) suspension of face-to-face educational activities; (ii) suspension of shopping malls, (iii) suspension of activities in closed spaces; (iv) prohibition to circulate between 8PM and 6AM for non-essential workers and other excepted people; (iii) shops and restaurants shall be closed between 7pm and 6am, and shall only attend customers in open spaces between 6AM and 7PM. All of the above measures shall become in force as of April 16th to April 30th 2021. The Decree also provides that high-risk employees suspended from their duty to assist to work place under Decree Nº 235/2021 shall receive a non-remunerative compensation equal to their salary, net of contributions.

Decree Nº 287/21 – New Restrictions for due to Health Emergency until May 21th

By means of Decree Nº 287/2021, the Executive Branch sets forth new preventive measures in order to mitigate the spread of SARS-CoV-2. The Decree provides the parameters for considering each jurisdiction as Low Risk, Medium Risk, High Risk or Epidemiologic Alarm. The Decree also provides preventive conduct measures to be complied at National level and suspends group tourism and social gatherings in private domiciles of more than ten people. Economic, industrial, commercial and service activities shall remain active as long as they have an approved sanitary protocol and the use of closed environments shall be limited to 50% of capacity. Home office shall be encouraged, when possible, and employers shall guarantee hygienic conditions. The meeting of employees during labor brakes (for example, lunch) shall be prohibited in closed environments, and employer shall rearrange brake shifts for said regard. The Decree also suspends high-risk employee’ duty to assist to work place provided under Resolution Nº 207/20 for the term of the Decree. Within jurisdictions cataloged as Medium Risk, local authorities may apply further restrictions. Within jurisdictions cataloged as High Risk, the following shall also be suspended: (i) social gatherings in private domiciles; (ii) social gatherings in open public places of more than ten people; (iii) recreational practice of sports in closed environments; (iv) activities in casinos, religious buildings, theatres, gyms, bars and other indoor establishments; (v) bars and restaurants shall be closed between 11pm and 6am, and limited to 30% of capacity in closed environments; (vi) circulation between 12AM and 6AM for non-essential workers and other excepted people. Within jurisdictions cataloged as Epidemiologic Alarm, the following activities shall also be suspended: (i) shopping malls, (ii) restaurants and bars between 7PM and 6AM, except for delivery; (iii) recreational group sports; (iv) clubs and gyms; (v) circulation between 8PM and 6AM for non-essential workers and other excepted people; (vi) face-to-face education; (vii) Public transportation shall be limited to essential workers, who shall obtain a circulation certificate. The Decree also defers closure of international borders. All of the above measures shall become in force as of May 1th 2021 to May 21th 2021.

Administrative Decisions Nº 342/21 and 437/21 – Closure of National Borders

By means of Administrative Decisions Nº 342/2021 and 437/21, the Chief of Staff defers until May 21th, 2021 the term provided under Administrative Decision Nº 2252/20, complemented by Administrative Decision Nº 268/2021, regarding closure of national borders due to the transmission of SARS-CoV-2 and the increase in the number of coronavirus cases.

Decree Nº 234/21 – Investment Promotion Regime for Exports

By means of Decree Nº 234/2021, the Executive Branch creates the Investment Promotion Regime for Exports, applicable to investments related to the start-up of new projects or expansion of ongoing businesses in order to increase production levels related to forest-industrial, mining, hydrocarbon, manufacturing and agro-industrial activities (financial investments and mergers and acquisition of companies or stocks are expressly excluded from this Regime). Investments shall be equal or larger than US Dollars One Hundred Million (USD 100.000.000). Benefit consists on the free availability of up to 20% of currency accrued from the exports related to the project, in order to apply to the cancelation of foreign debt and/or repatriation of direct investments. Such benefit shall not exceed 25% of the annual gross currency amount entered by the beneficiary to the MULC (Free Exchange Market) in order to finance the project. The benefit shall apply for a term of 3 years as of the date of issuance of the Decree. Such term can be extended by Enforcement Authority for an additional 3 years. The projects approved and registered within the Regime shall enjoy legal stability regarding future foreign exchange regulations applying to the awarded benefit for a term of 15 years.

Communication “A” Nº 7259/21 - Investment Promotion Regime for Exports

By means of Communication “A” 7259/2021 the Central Bank of the Argentine Republic (“BCRA”) allows the application of charges in foreign currency resulting from the exportation of goods corresponding to projects comprehended in the Regime created under Decree Nº 234/21, to pay foreign commercial and financial debt, as well as dividends and repatriation of direct investments. The Communication sets forth the conditions and requirements for said regard, including -among others- that the applied amount shall not exceed 20% of the foreign currency charged for the exportation.

General Resolution Nº 4958/21 - Knowledge Based Economy Regime

By means of General Resolution Nº 4958/2021, Tax Enforcement Authority (“AFIP”), sets forth the proceeding for obtaining VAT (“IVA”) exclusion certificates for beneficiaries of the Promotion Regime created under knowledgebased economy Law Nº 27,506.

Resolution Nº 330/21 – Official Demand to Increase Production

By means of Resolution Nº 330/2021, the Secretary of Internal Commerce demands all businesses of commerce and industry with total domestic sales during 2019 exceeding the amounts provided under Resolution Nº 220/2019 of the Secretary of Entrepreneurs and Small and Medium Companies (referring to “PyMES”), to increase their production to their maximum and to ensure transport, distribution and provision of goods during Public Health Emergency, under the penalties provided in Law 20,680.

Decree Nº244/21 – Regulation of Promotion of Construction and Access to Housing Law

Decree Nº244/2021 issued by the Executive Branch regulates certain aspects of Law Nº27,613 about Promotion of Construction and Access to Housing. Among other aspects, the Decree sets forth that Tax Enforcement Authority (“AFIP”) will create a special registry for purposes of registering the information of the projects developed under Law Nº27,613, determines the way in which the progress of the works should be credited for purposes of the Law and clarifies certain aspects of the tax benefits granted under the Law, such as the benefits in connection with the tax on personal assets. In addition, and for purposes of Law Nº27,613, Communication A 7269 issued by BCRA regulates the “Special Deposit and Cancellation Accounts for Argentine Construction (CECON.Ar) Law Nº27,613”.

Law Nº 27,617 – Income Tax Law

Law Nº 27,617 (the “Law”) modifies the Income Tax Law in relation with the tax payable by natural persons. Law’s main aspects are the following: (i) The non-taxable minimum amount (or special deduction) is increased and therefore, the income tax shall be now paid by employees whose gross salaries exceeds AR$150,000. This amount will be updated on an annual basis; (ii) The supplementary annual salary is excluded from income tax for the salaries indicated in (i); (iii) income tax shall not apply to “productivity bonus” or similar concept earned by employees up to an amount equal to 40% of the non-taxable annual income amount; (iv) new deductions are allowed. The modifications set forth by the Law shall be valid as from January 1st, 2021.

Law Nº 27,618 – Modification to the Simplified Regime for Small Taxpayers

Law Nº 27,618 creates a “Support and Inclusion Tax Regime” for taxpayers included in the Simplified Regime for Small Taxpayers (“monotributo regime” - Law No. 24977) and sets forth modifications to said regime.

Decree Nº 266/21 - Deferral of Prohibition for Dismissals and Suspension of Workers

By means of Decree Nº 266/2021, the Executive Branch defers until May 31st, 2021 the prohibition of: (i) dismissing without cause and dismissing due to reasons of lack or diminution of work or force majeure events; and (ii) suspensions of 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. The Decree shall not apply regarding employees hired after December 13th, 2019. Finally, the Decree defers until May 31st, 2021 the presumption that COVID-19 disease is a non-listed professional disease regarding employees who perform their work tasks in their regular workplaces and outside their domiciles

Joint Resolution Nº 4/21 – High-risk Employees’ Presence at Work Place

By means of Joint Resolution Nº 4/2021, the Ministry of Health and the Ministry of Work, Labor and Social Security set forth that employers shall be able to request the presence at work place of high-risk employees whose duty to assist to work place had been suspended under Resolution Nº 207/20, as long as such employees have received, at least, a first dose of COVID-19 vaccine. The request shall be valid after 14 days of vaccination

Resolution Nº 198/21 – Repro II

By means of Resolution 198/2021, the Ministry of Labor modifies previous Resolution Nº 938/2020 regarding the Repro II program under which the national government provides assistance to activities affected by the COVID19 situation. Among other aspects, the Resolution sets forth the critical activities which will be entitled to obtain a benefit under the Repro II program, the benefits to be obtained and the criteria in order to apply and be selected for the obtainment of said benefits.

Resolution Nº 206/21 – Repro II

By means of Resolution Nº 206/2021, the Ministry of Labor establishes the period of time comprehended between April 26th, 2021 and May 3rd, 2021 for applying for REPRO II Program’s benefits regarding April 2021 salaries and the guidelines to be considered in order to apply the pre-selection criteria determined under the Repro II program.

Resolution Nº 4967/21 – New Term for Registering Lease Agreements

On April 19th, 2021, Tax Enforcement Authority (“AFIP”) issued Resolution Nº4967/2021 which modifies the term for registering the lease agreements entered into under Law Nº27,551. The new terms for registering the lease agreements are determined by the type of contract and the date of their execution.

Joint Resolution Nº 3/21 – Sworn Statement for Exports of Meat

Joint Resolution Nº3/2021 determines that exports of meat and its sub-products listed in the Resolution shall be subject to the prior submission of a sworn statement.

Resolution Nº 3/21 - Foundations

By means of Resolution N° 3/2021, the Superintendence of Corporations (“IGJ”), modifies the initial minimum capital for the constitution of foundations to ARG $ 500,000. Additionally, the resolution modifies the procedures for the presentation of the financial statements and three-year action plan.

Resolution Nº 4/21 – Regularization Plan for Civil Associations

By means of Resolution N° 4/2021, the Superintendence of Corporations (“IGJ”), sets forth a regularization plan for civil associations in order to present and update, under a single presentation, unregistered authorities, social headquarters and financial statements.

Resolution Nº 6/21 – Remote Meetings for Civil Associations

By means of Resolution N°6/2021, the Superintendence of Corporations (“IGJ”) extends, due to the restrictions on circulation, the possibility of holding remote meetings by the administration and governing bodies of civil associations. To such end, the Resolution sets forth the requirements to be met in order to ensure the authenticity and participation of all board members at the meetings.

LATEST NEWS IN THE HYDROCARBON SECTOR

Decree Nº 245/21 – Deferral of Tax on Liquid Fuels

By means of Decree Nº 245/2021, the Executive Branch defers until June 21st, 2021 the increase of the tax on unleaded gasoline, raw gasoline and diesel previously determined by Decree Nº488/2020.

Resolution Nº 360/21 - Authorization Procedure for Natural Gas Exports

By means of Resolution Nº 360/21, the Secretary of Energy sets forth the terms and conditions for the Authorization Procedure for Exportation of Natural Gas (the “Procedure”). Exportation permits previously granted under Resolution Nº 417/19 -now abrogated- shall comply with the Procedure.

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