Relevant News

• Deferral of restrictions to acquisition of foreign currency (access to MULC)
• Access to MULC for exporters who have increased exports
• Health Emergency (COVID-19). Deferral of preventive restrictions
• Amendments to income tax for companies
• Deferral of Prohibition for Dismissals and Suspensions
• Hydrocarbon Reactivation Program of Conventional Production in the Province of Neuquén

LEGISLATION

Communication “A” Nº 7301/21 – Access to MULC

By means of Communication “A” Nº 7301, the Central Bank of the Argentine Republic (“BCRA”), provides that BCRA’s prior authorization for access to MULC shall no longer be required for exporters that, having increased their exports of goods in 2021 and fulfilled other requirements provided therein, have obtained an “Export 2021 increasement Certificate” issued by their appointed local bank. The Certificate shall be granted for a maximum limit of 30% of FOB value of 2020 exports, or less, according to the calculations provided in the Communication.

Communication “A” Nº 7313/21 – Access to MULC

By means of Communication “A” Nº 7313/21, the Central Bank of the Argentine Republic (“BCRA”), defers until December 31st, 2021 the requirements and restrictions for accessing the MULC in order to pay financial indebtedness to related companies, imports of goods and the principal of indebtedness incurred in connection with imports. The Communication also brings modifications to the regulations applicable to payment of imports

Decrees Nº 381/21 and N° 411/21 – Deferral of Restrictions Due to Health Emergency

By means of Decrees Nº 381/2021 and N° 411/21, the Executive Branch defers until July 9th, 2021 the preventive measures set forth under Decree Nº 287/21 in order to mitigate the spread of SARS-CoV-2, which provided certain parameters for considering each jurisdiction as Low Risk, Medium Risk, High Risk or Epidemiologic Alarm, and the corresponding restrictions applicable to jurisdiction according to said categories.

Administrative Decisions Nº 589/21 and N° 643/21 – Closure of International Borders

By means of Administrative Decisions Nº 589/2021 and N° 643/21, the Chief of Staff defers until July 9th, 2021 the term provided under Administrative Decisions Nº 2252/20, 268/2021 and complementary regulations regarding closure of national borders due to the transmission of SARS-CoV-2 and the increase in the number of coronavirus cases.

Law Nº 27,630 – Income Tax Applicable to Companies

Law Nº27,630 (the, “Law”) introduces changes to Income Tax Law which will be applicable as from fiscal year 2021. The main aspects of the Law are the following: (i) modification of the tax rates applicable to companies detailed under section 73 a) and permanent establishments detailed in Section 22 of Income Tax Law which will be adjusted on an annual basis; (ii) reduction from 13% to 7% of the tax rate applicable to dividends and profits distributed by entities detailed in (i) above; (iii) increase of the deductions of directors and syndics fees when said director or syndic was a woman, transvestites, transsexual and transgender persons and; (iv) sets forth the definition of “low or null tax jurisdiction”.

General Resolution Nº 5008/2021 – Income Tax

By means of General Resolution Nº 5008/2021, Tax Enforcement Authority (“AFIP”) modifies the regulations applicable to the withholding of income tax in accordance with the modifications introduced to the Income Tax Law by means of Law Nº27,617 and Decree Nº336/21. Among others, the Resolution sets forth the following: (i) determines the proceeding and the amounts of personal deductions to be considered regarding the salaries accrued during June 2021; (ii) sets forth that the reimbursement of the amounts withheld in excess will be made in five equal, monthly and consecutives installments between July 2021 and November 2021; and (iii) brings clarifications regarding the implementation of the exemptions applicable to certain concepts such as supplementary annual salary (SAC), productivity bonus or similar concepts.

General Resolution Nº 5010/21 – Transfer Prices

By means of General Resolution Nº 501/2021, Tax Enforcement Authority (“AFIP”) creates the “Simplified Regime of International Operations” which aim is to facilitate the submission of the annual reports regarding international operations which companies must file before AFIP and complements Resolution Nº4717. Companies which comply with the requirements set forth under the Resolution will be able to choose for the aforementioned regime.

Resolution Nº 311/21 – REPRO II

The Resolution also defers the date for submitting the forms Nº2668 and the study of Transfer Prices corresponding to the fiscal years closed between December 31, 2020 and December 31, 2021. By means of Resolution Nº 311/2021, 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 May 2021.

Resolution Nº 551/21 – Modifications to MATER

Resolution Nº551/21 issued by the Secretary of Energy introduces some modifications to the Regime Applicable to the Electric Power Obtained from Renewable Energy Sources Term Market (“MATER”) by modifying the regulations applicable to the administration of the priority of dispatch of electric power obtained from renewable energies with the MATER.

Resolution Nº 413/21 – Deferral of Prohibition for Dismissals and Suspensions

By means of Decree N° 413/2021 (“The Decree”), the Executive Branch defers until December 31st, 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. The Decree also defers until December 31st, 2021 the presumption that OCIVD-19 disease is a professional disease regarding workers who perform their tasks outside their domicile.

Decree Nº 410/21 – Reference Values Applicable to Exports

By means of Decree N° 410/2021, the Executive Branch sets forth an export duty applicable to exports of certain products provided therein.

Resolutions Nº 5011/21, 5014/21, N° 5015/21 and Nº 5018/21 – Reference Values Applicable to

By means of Resolutions Nº 5011/2021, N° 5014/21, N° 5015/21 and Nº 5018/21, the General Direction of Customs sets forth new values of reference for the exportation of certain products provided therein (cowhide leather, squid and powder milk)

Decree N° 408/21 – Export of Bovine Meat

By means of Decree 408/21, the Chief of Staff suspends until December 31th, 2021 the export of certain cuts of bovine meat, and sets forth a monthly maximum exportation cap for other cuts of bovine meat not provided therein, until August 31th, 2021.

LATEST NEWS IN THE HYDROCARBON SECTOR

Decree Nº 352/21 – Taxes on Liquid Fuels and Carbon Dioxide

Decree Nº 352/21 issued by the Executive Branch defers until December 2021 the application of the increase of tax on liquid fuels and carbon dioxide (art. 4, subsection b, art 7 and art 11 of Law Nº23,966) corresponding to the first and second quarter of 2021 for unleaded gasoline, virgin gasoline and diesel.

Province of Neuquén - Conventional Hydrocarbons Reactivation Program

By means of Decree 0913/2021, the Governor of the Province of Neuquén creates the Provincial Hydrocarbon Reactivation Program, aimed for the reactivation, investment and increase of conventional hydrocarbons production. Interested parties shall submit the corresponding Reactivation Plan until July 16th 2021 for approval. Reactivation Plans approved by Enforcement Authority shall be granted with fiscal credit for 50% of the amount of the investments included in the Reactivation Plan. Such credit shall be valid until December 31th 2026 for the cancelation of provincial tax. The Program extends to active and inactive wells, and may include 25% of investments for abandonment of wells.

Resolution Nº 174/21 – Modification to the Regime of Affectation to Domain by Gas Transport and Distribution Installations

By means of Resolution Nº174/21, Gas Enforcement Authority (“ENARGAS”) approves new Sub Annexes I.I.1 and I.I.3 and Annex II of Resolution NºI-3562/15 which contains the regulations applicable to the affectations to domain by gas installations.

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