Relevant News

• Reconstruction and Deregulation of the Economy and National State
• New Import System (SEDI)
• Settlement Period for Negotiable Securities ("parking")
• Declaration of National Energy Emergency
• Advance Payment of Income Tax by Hydrocarbons Companies

LEGISLATION

Decree N° 70/23 – Reconstruction of the Economy

By means of Decree N° 70/2023, the Executive Branch declared the public emergency in the economic, financial, tax, administrative, social security, public service rates, health and social matters until December 31st, 2025, and set forth deep, broad and numerous reforms seeking for market, industry and service deregulation. Among many other, the Decree provides the following: (i) Derogation of Law N° 26.992 which created the Price Observatory; (ii) Derogation of Market Shelves Law N° 27.545; (iii) Derogation of Goods and Services Supply Law N° 20.680; (iv) Derogation of certain sections of “Buy National" Law N° 27.437; (iv) Derogation of the Commercial Promotion Law N° 18.425 and Industrial Promotion Law N° 21.608; (v) Derogation of the Rental Law N° 27.221; (vi) Modernization of the labor regime, by -among others- facilitating labor registration and derogating labor fines and severance provided under Laws N° 24.013, 25.013, 25.345 and 25.323 regarding unregistered employment; (vii) Amendments to the Customs National Code; (viii) Derogation of the Rural Land Law N° 26.737 which limited and prevented certain acquisitions by foreigners; (ix) Derogation of Import Law N° 25.626 which prohibited imports of certain products; (x) Derogation of Law N° 24.523 which created the National Mining Trade System and Law N° 24.695 which created the Mining Information Bank; (xi) Liberalization of the legal regime applicable to the wine sector by derogation of Laws N° 18.600, 18.905 and 22.667; (xii) Implementation of the “open skies” policy regarding air transportation;(xiii) Amendments to the Civil and Commercial National Code, providing among others that obligations established in foreign currency must be paid in such same currency, etc. In addition, the Decree also abrogates several laws regarding public national state composition/organization and provides amendments regarding energy, credit cards, foreign commerce bio-economy, air commerce, justice, health, tourism, labor, teleworking, etc. The Decree is valid as of December 29th, 2023.

Decree N° 55/23 - National Energy Emergency

By means of Decree N° 55/2023, the Executive Branch declares, until December 31st, 2024, the National Energy Emergency regarding generation, transportation and distribution of electric power and transportation and distribution of natural gas. The Decree establish the beginning of the proceeding of revision of tariffs, which result shall become effective no longer than December 31st, 2024.

Decree N° 8/23 – Public Office Reorganization

By means of Decree N° 8/2023, the Execute Branch amends Law of Ministries (Decree N° 438/92) providing, among others, a reduction of National Ministries to the quantity of nine which roles are provided therein.

Decree N° 84/23 – Termination of Public Employee’s Contracts

By means of Decree N° 84/2023, the Executive Branch set forth that all service contracts of public officers – with the exceptions provided therein- celebrated after January 1st, 2023, expiring before January 1st, 2024, shall not be renewed.

Joint General Resolution N° 5466/23 – New Import System

By means of Joint General Resolution N° 5466/2023, Federal Tax Authority (AFIP) jointly with the Secretariat of Commerce, created the "Import Statistical System" (SEDI) for imports destined for consumption, in replacement of previous SIRA System. The Resolution also created the "Registry of Commercial Debt for Imports with Foreign Suppliers", for the registration of persons that have commercial debt for imports of goods and/or services.

Decree N° 29/23 and General Resolution N° 5464/23 – PAIS Tax

By means of Decree N° 29/2023 and General Resolution N° 5464/2023, the Executive Branch and Federal Tax Authority (AFIP), respectively, increased the “PAIS” tax rate applicable to import of goods (with certain exceptions provided therein) and transportation services associated with foreign trade.

General Resolution N° 5463/23 – Perceptions on account of Personal Property and Income Taxes

By means of General Resolution N° 5463/2023, Federal Tax Authority (AFIP) unified and reduced to 30% the rate of perceptions on account of Income and Personal Property Taxes applicable to operations in foreign currency taxed with “PAIS” Tax.

General Resolution N° 988/23 – Period of Performance for Settlement of Negotiable Securities

By means of General Resolution N° 988/2023, the National Securities Commission ("CNV") reduced to one (1) business day the minimum holding term (“parking period”) for sale operations of securities settled in foreign currency under any jurisdiction.

Resolution N° 1454/23 - Annual Fee for Joint Stock Companies

By means of Resolution N° 1454/2023, the Ministry of Justice enabled payments of the annual fee for joint stock companies before the General Inspection of Justice (IGJ). Payments shall be considered expired on December 15th, 2023.

LATEST NEWS IN THE HYDROCARBON SECTOR

Resolution N° 3/23 – Price of Biodiesel

By means of Resolution N° 3/2023, the Secretariat of Energy set forth a new minimum price for operations of biodiesel destined for mandatory mixture with diesel (under Law 27,640) as from December 28th, 2023.

Resolution N° 4/23 – Price of Bioethanol (Sugar Cane and Corn)

By means of Resolution N° 4/2023, the Secretariat of Energy set forth the price of bioethanol obtained from sugar cane and corn destined for mandatory mixture with petrol (Law 27,640) applicable to operations performed as from December 28th, 2023.

Resolution 970/23 - Program for the Reduction of Fugitive Emissions Derived from Hydrocarbons

Under previous administration, by means of Resolution N° 970/2023, the Secretariat of Energy created the "National Program for the Measurement and Reduction of Fugitive Emissions Derived from Hydrocarbon Exploration and Production Activities". The Program main objectives are to promote actions aimed to detect and measure fugitive emissions associated with hydrocarbon exploration and production activities within national territory and the implementation of mitigation and reduction plans. Obligated partis shall submit an Annual Measurement Plan and a five-year Reduction Plan in accordance with the regulations to be yet issued for such end.

Resolution 5453/23 – Income Tax for Hydrocarbons Companies

Under previous administration, by means of General Resolution N° 5453/2023, Tax Enforcement Authority (AFIP) set forth a regime of payment on account of income tax to be settled by hydrocarbon companies (oil and gas producers, oil refiners and generators of conventional thermal energy) having at least for fiscal years 2022 or 2023 a result equal to or greater than Pesos Six Hundred Million ($ 600.000.000), with no tax deduction from previous years.

Note 142066652/2023 – Exploratory and Exploitation Canon

By mans of Note 142066652-APN-DNEYR#MEC, the National Direction of Economics and Regulations set forth the values for exploration and exploitation canon for the year 2024 in accordance to section 58 of Law 17.319 and Decree 771/2020.

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