Relevant News

• New Registration Regime for Vehicle Companies
• Health Emergency (COVID-19). New preventive restrictions
• Regulation of the amendments to Income Tax Law
• Deferral of Prohibition for Dismissals and Suspensions
• Minimum Wage
• Hydrocarbons National Transportation Registry
• Financial Solvency Requirements for Hydrocarbons Companies

LEGISLATION

General Resolution Nº 8/21 – New Regime for Vehicle Companies

By means of General Resolution N° 8/2021, the Superintendence of Corporations (“IGJ”) modifies the registration regime for companies acting as holding/vehicle companies (“VC”). Among others, the Resolution provides the following: (i) the nature of the VC shall be declared simultaneously to its registration in Argentina, and not after; (ii) registration of only one VC per group shall be admitted; (iii) registration of a VC shall not be admitted if -direct or indirect- controlling company is already registered pursuant to Sections 118 or 123 of Law No. 19,550; (iv) registration of a VC shall not be admitted if controlled by chained successive sole-owners companies; (v) registration of sole-owner corporation shall not be admitted if controlled by a sole-owner foreign company. Resolution also sets forth that registration proceedings pursuant to Section 123 of Law 19550, shall require the filing of an investment plan indicating several information regarding the company to be acquired/incorporated by the registering company.

Decree Nº 334/21 - New Restrictions Due to Health Emergency

By means of Decree Nº 334/2021, the Executive Branch sets forth new measures in order to mitigate the spread of SARS-CoV-2 in the country. Among others, the Decree defers until June 11th, 2021 the measures set forth under Decree Nº 287/21 and implements new restrictive measures from May 22nd, 2021 up to May 30th, 2021 and for June 5th, 2021 and June 6th, 2021 for zones declared in “Epidemiological Alarm”. The restrictive measures regarding the zones declared in “Epidemiological Alarm” include: (i) the suspension of people’s presence in all economic, industrial, commercial, service, cultural, sportive, religious, educational, touristic, recreational an social activities; (ii) employees must carry out theirs tasks under the modality of home office; (iii) public transportation within the AMBA shall be limited to essential workers, who shall obtain a circulation certificate; and (iv) circulation between 6PM and 6AM shall be prohibited for non-essential workers and other excepted people. The Decree also sets forth the essential activities exempted from the restrictive measures.

Administrative Decisions Nº 512/21 and Nº 513/21 – Closure of National Borders

By means of Administrative Decisions Nº 512/2021 and 513/2021, the Chief of Staff defers until June 11th, 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.

Resolution Nº 245/21 – Repro II

By means of Resolution Nº 245/2021, the Ministry of Labor adopts the recommendations issued by the Evaluation Committee of the Repro II Program which sets forth the parameters to be met by companies in order to access the benefits under the program regarding the salaries accrued during April 2021.

Decree Nº 323/21 – Repro II

By means of Decree Nº 323/2021, the Executive Branch sets forth until December 31st, 2021, a 100% reduction on the contributions to the social security system for the employers registered under REPRO II Program and considered as critical activities.

Resolution Nº 266/21 – Repro II

By means of Resolution Nº 266/2021, the Ministry of Labor sets forth the parameters and conditions required for applying for REPRO II Program’s benefits regarding May 2021 salaries. Among others aspects, the Resolution set forth the benefit amount will reach a maximum of ARS$22,000.

Resolution Nº 267/21 – Repro II

By means of Resolution Nº 267/2021, the Ministry of Labor sets forth the period of time comprehended between May 26th, 2021 and June 1st, 2021 for applying for REPRO II Program’s benefits regarding May 2021 salaries and the guidelines to be considered in order to apply the pre-selection criteria determined under the Repro II program.

Decree Nº 336/21 – Income Tax

By means of Decree Nº 336/2021 (the, “Decree”), the Executive Branch regulates the amendments to the Income Tax Law set forth under Law Nro. 27,617. Decree’s main aspects are the following: (i) the Decree clarifies that the concept of gross salary includes all amounts received by the employee, whether in cash or in kind, regardless of the applicable exemptions or whether they are subject to social security contributions or not; (ii) determines the regulations applicable to exemptions for “productivity bonus” or similar concepts and special deductions and clarifies that to such end, employer shall consider an average of the monthly gross salary received by the employee; (iii) the Decree brings specifications regarding the new exemptions; and (iv) the Decree determines that the employer is responsible for compliance of income tax regulations. Notwithstanding the terms of the Decree, Tax Enforcement Authority will have to issue further regulations regarding the application of the modifications to Income Tax Law.

Decree Nº 345/21 – Deferral of Prohibition for Dismissals and Suspensions

By means of Decree N° 345/2021 (“The Decree”), the Executive Branch defers until June 30th, 2021 the prohibition of: (i) dismissals without cause and dismissals 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 the date of entry in force of Decree N° 34/2019.

Resolutions Nº 4/21 and 5/21 – New Values for the Minimum Wage and Unemployment Benefits

By means of Resolution Nº 4/2021, amended by Resolution Nº 5/2021, the Ministry of Work, Labor and Social Security sets forth a staggered increase in the value of minimum wage and unemployment benefits, from April 1st 2021 to February 2022.

Resolution Nº 4997/21– Payment Plan for Tax on Wealth

Resolution Nº4997/21 issued by Tax Enforcement Authority (“AFIP”) sets forth a new payment plan for the cancellation of debts arising in connection to the tax on wealth created under Law Nº27,605.

Resolution Nº 4998/21– Reference Values Applicable to Exportations

By means of Resolution Nº 4998/2021, the General Direction of Customs sets forth new values of reference for the exportation of certain products provided therein (bovine meat) destined to certain Asiatic countries also provided therein. The Resolution abrogates values of reference previously set forth under General Resolution N° 4985/2021.

Resolution Nº 5000/21 – Precautionary Measures and Tax Enforcement Proceedings

By means of General Resolution N°5000/2021, Tax Enforcement Authority (“AFIP”) defers until August 31st, 2021 the suspension of (i) the application of precautionary measures against small and medium companies (“PyMES”) and (ii) initiation of tax enforcement proceedings.

LATEST NEWS IN THE HYDROCARBON SECTOR

Resolution Nº 385/21 – Hydrocarbons National Transportation Registry

By means of Resolution Nº 385/2021, the Secretariat of Energy abrogates Resolution Nº 29/2010 and approves the new requirements for registration -and annual renewal- with the Hydrocarbons National Transportation Registry.

Note Nº 37489749 – Financial Solvency Requirements for Hydrocarbons Companies

By means of Note NO-2021-37489749-APN-DNEYR#MEC, the National Director of Economic and Regulation sets forth the new and updated minimum amounts of net worth to be complied by hydrocarbons companies in order to meet financial solvency requirements and obtain registration -or renovation- with National Oil Companies and/or National Transportations Registries for the 2021-2022 period. Said amounts are the following: (i) On Shore Areas: ARS$ 78,732,959.92; and (ii) Off Shore Areas: ARS $ 787,329,599.19.

Decree Nº 322/21 - Promotion Regime for the Sustainable Production and Use of Biofuels

By means of Decree Nº 322/2021, the Executive Branch defers until July 12th, 2021 or until a new “Biofuel Regulatory Framework” comes into effect, whatever occurs first the validity of the Promotion Regime for the Sustainable Production and Use of Biofuels (Law Nº26,093).

Resolution Nº 414/21 – Creation of the Registry of Safety, Technical and Environmental Auditing Entities

Resolution Nº414/2021 issued by the Secretariat of Energy creates the Registry of Safety, Technical and Environmental Auditing Entities for the registration of entities and natural persons which intend to carry out safety, technical and environmental audits, among others, on refineries, hydrocarbons processing and storage facilities, liquid fuels and LNG stations, facilities with storage tanks, measurement systems of liquid and gaseous hydrocarbons and any other plant, facility station and element that should be audited in accordance with applicable law. The Resolution also approves the rules which regulate the aforementioned registry and clarifies that except for the exceptions expressly contemplated under the specific regulations, the audits requested by the Sub-secretary of Hydrocarbons can only be performed by an entity registered in accordance with the terms of Resolution Nº414/2021.

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