Relevant News

• Health Emergency (COVID-19). New preventive restrictions and return of travelers
• Payment mechanisms for payment of securities’ operations
• Exchange control and access to foreign currency
• Exemptions from payment of income and personal assets tax regarding financial instruments
• In person judicial activity
• New Biofuels regulatory framework
• Regulation of non-physical transport service of liquid hydrocarbons through pipelines

LEGISLATION

Decree 494/21 – Preventive Measures and Restrictions due to Health Emergency

By means of Decree Nº 494/2021, the Executive Branch sets forth the new preventive measures and restrictions in order to mitigate the spread of SARS-CoV-2 applicable to jurisdictions classified as with Epidemiologic and Sanitary Alert as provided therein, as of August 7th 2021 to October 1st 2021.

Administrative Decision 793/21 - Closure of National Borders

By means of Administrative Decision Nº 793/2021, the Chief of Staff defers until October 1st, 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 weekly quotas for entry of international flights.

Administrative Decision Nº 846/21 – New exemptions to Mandatory Quarantine

Administrative Decision Nº 846/2021 issued by the Chief of Staff, exempts Argentines who have travelled abroad for work or commercial reasons from the mandatory quarantine set forth under Article 7 of Decree 260/20 and complementary regulations. The decision also applies to foreign non-residents who had been expressly authorized by local authorities to develop a labor o commercial essential activity in our country. The Administrative Decision, also determines the requirements in order to be exempted of mandatory quarantine, such as providing evidence a complete vaccination schedule, a negative PCR done 72 hours prior to travelling and a negative antigen test upon entry into the country. Administrative Decision N1846/21 shall become valid and enforceable on September 20th, 2021 as determined by Administrative Decision Nº853/2021.

Communication “A” 7340/21 - Securities Trading Operations

By means of Communication “A” 7340/2021 the Central Bank of the Argentine Republic (“BCRA”) partially modifies the regulations of Foreign Exchange of the BCRA (“Exterior y Cambios”) by providing the only two mechanisms accepted for payment of purchase and sale operations of securities settled in foreign currency. Furthermore, the Communication sets forth that settlement of said transactions shall not be permitted by means of payment in foreign currency bills, or by deposit in custody accounts or in third parties accounts.

Communication “A” 7348/21 – Access to MULC

By means of Communication "A" Nº 7348/21, the Central Bank of the Argentine Republic ("BCRA") allows accessing the MULC without the need of obtaining BCRA’s prior written authorization in order to cancel commercial debt incurred for the import of goods or services which was outstanding as of June 30th, 2021 to those who register new settlements in the MULC of disbursements corresponding to new financial indebtedness, subject to the requirements set forth under the Communication.

Law Nº 27,638 – Income Tax and Personal Property Tax

Law Nº27,638 exempts successions and natural persons from the payment of Income Tax and Personal Property Tax regarding certain financial instruments determined therein (such as certain bonds in ARS, fixed term deposits, among others). The benefits shall apply as of 2021 fiscal year.

General Resolution Nº 5060/21 – Income Tax on Dividends - Withholding

By means of General Resolution Nº 5060/2021, Tax Enforcement Authority (“AFIP”) modifies the regulation applicable to the payment of withholding of income tax on dividends in accordance with the modifications introduced to the Income Tax Law by means of Law Nº 27,630, which reduced from 13% to 7% the tax rate applicable to dividends and profits distributed or made available to individual and undivided estates residing in the country and beneficiaries located abroad provided such dividends or profits correspond to fiscal years initiated as from January 1st, 2018.

Resolutions 5044/21, 5047/21 and Nº 5054/21 – Reference Values Applicable to Exportations

By means of Resolutions Nº 5044/2021, Nº 5047/21 and Nº 5054/21, the General Direction of Customs sets forth new values of reference for the export of certain products provided therein (bovine meat, lemons and limes). The Resolution Nº 5044/21, also, abrogates values of reference previously set forth under General Resolution N° 4988/2021.

Resolution Nº 742/21– Modification to the RENOVAR Program

Resolution Nº742/2021 issued by the Secretariat of Energy modifies Resolution Nº285/18 regarding the possibility to defer the scheduled date for accomplishing commercial operation and the application of penalties to the projects awarded under Renovar Rounds Nº1, 1.5 and 2. Among others, Resolution Nº742/21 grants an extension of the date scheduled for accomplishing commercial operation of the project, allows the owners of the projects to apply for the application of Resolution Nº285, reduces in certain cases the applicable penalties and sets forth a cap for the discount of the penalties from the monthly payment received by the projects which had chosen to pay the penalties in 48 installments.

Resolution 462/21– REPRO II

By means of Resolution Nº 462/2021, the Ministry of Labor adopts the recommendations issued by the Evaluation Committee of the Repro II Program which sets forth the new parameters to be met by companies in order to access the benefits under the program.

Resolution 488/21– REPRO II

By means of Resolution Nº 488/2021, the Ministry of Labor sets forth the period of time comprehended between August 25th, 2021 and August 31st, 2021 for applying for REPRO II Program’s benefits regarding the month of August 2021 salaries and the guidelines to be considered in order to apply the pre-selection criteria determined under the Repro II program.

Supreme Court Agreement Nº 14/21 – Face to Face Judicial Work

By means of Agreement Nº 14/2021, the Supreme Court of Justice decided that, as from September 1st, 2021, magistrates, officials and employees of the National Judicial Power over 60 years of age who have at least the first dose of any of the vaccines intended to generate acquired immunity against COVID-19, may be summoned by the respective authorities to render services in person, once 14 days of inoculation had elapsed. The Agreement also sets forth that pregnant women and those who suffer from diseases that make them more vulnerable to the virus are excluded from this decision.

Decree Nº 513/21 – Export of Bovine Meat

By means of Decree 513/21, the Chief of Staff amends Decree 408/21 and increases the monthly maximum exportation cap for certain cuts of bovine meat.

General Resolution Nº 5052/21 – Precautionary Measures and Tax Enforcement Proceedings

By means of General Resolution N° 5052/2021, Tax Enforcement Authority (“AFIP”) defers until November 30th, 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

Law 27,640 – New Biofuels Regulatory Framework

Law Nº27,640 approves the “Biofuels Regulatory Framework”, which will be in force and effect until December 31st, 2030, and may be deferred by the Executive Branch only once for a five-year period. The Biofuels Regulatory Framework include all activities related to the production, storage, trade and blending of biofuels. Among others, the Law sets forth the following: (i) only authorized companies by the enforcement authority will be entitled to conduct any activity comprehended in the regulatory framework; (ii) mandatory minimum percentages of mixture of biofuels with fossil fuels; (iii) companies which produce or distil hydrocarbons are not allowed to own or participate in companies which produce biofuels; (iv) companies which are responsible for elaborating mandatory mixtures of biofuels and fossil fuels are compelled to acquire the biofuel from authorized companies; (v) the Secretariat of Energy shall determine the price for the acquisition of biodiesel for its mixture with gasoil and/or diesel oil and bioethanol. In addition, the Law creates a Special Commission on Biofuels to prepare the strategic plan for the development of biofuels in Argentina.

Decree Nº 540/21 - Liquid Hydrocarbons Swap

By means of Decree Nº 540/21 (the "Decree"), the Executive Branch implements the “Non-Physical Transportation of Liquid Hydrocarbons Service by means of Pipelines and until the Access Flange of the Storage Plant” or liquid hydrocarbons swap. The non-physical transportation refers to the service under which a charger delivers liquid hydrocarbons in a specific charging point and requests in return an equivalent amount of liquid hydrocarbons to be delivered in a point different to the one set forth in accordance with hydrocarbons’ usual flow direction within the same transport concession. The Decree provides that the charger may request the carrier to provide the aforementioned service, and the carrier shall provide it provided its transport system’s technical and operational conditions allow it and that the equivalent amount of hydrocarbons was available in the return point. The carrier is allowed to charge an administrative fee for the service in addition to the tariff, which shall be borne by the shipper.

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