Relevant news:

• Law of Social Solidarity and Productive Reactivation within Public Emergency
• Double Compensation in Case of Dismissal Without Cause
• Increase of Export Tax
• Income Tax
• Financial solvency requirements for Oil&Gas industry

LEGISLATION

Law Nº27,541 – Law of Social Solidarity and Productive Reactivation within Public Emergency

On December 23, 2019 the Law of Social Solidarity and Productive Reactivation within Public Emergency (the, “Law”) was published in the Official Gazette. Below, you will find a brief summary of Law’s main aspects:

1. The Law declares the public emergency in the economic, financial, tax, administrative, social security, tariffs, energy, health and social areas while it delegates in the Executive Branch (“EB”) the power of issuing delegated regulations during a 180-day period of time within certain bases determined by Congress.
2. By means of the Law and during a 180-day period of time, the EB is allowed to maintain natural gas and electricity tariffs subject to federal jurisdiction, to initiate a re-negotiation process of said tariffs and intervene enforcement authorities of gas and electricity public services during a one-year period.
3. The Law creates a payment plan for small and medium companies for debts arising for un-paid social security and tax obligations with Tax Enforcement Authority.
4. The Law abrogates the reduction of employer’s contributions to the social security system and the adjustment mechanism of the non-taxable amount established under Law Nº27,430 and sets forth two unique aliquots for employer’s contributions and a fixed sum for the non-taxable amount. The Law also allows to use part of the sums paid as employer’s contributions as tax credit for payment of other tax obligations.
5. The Law modifies the method applicable to adjustment for inflation of financial statements corresponding to the first and second fiscal periods initiated as from January 1, 2019 for purposes of income tax to be calculated under Section 106 of the Income Tax Law.
6. The Law eliminates as from the 2019 fiscal period the minimum aliquot applicable to personal assets income tax, sets forth a new maximum aliquot of 1.25% and allows the EB until December 31, 2020 to determine a differential aliquot for assets located abroad. The Law also increases up to 0.5% the aliquot to be paid by companies in representation of natural persons for their stockholdings or participations.
7. Tax on financial revenue applicable to natural persons and undivided successions is abrogated.
8. The Law creates an emergency tax of 30% named “PAIS” which is levied on the acquisition of foreign currency for hoarding or without a specific purpose under the exchange regulations actually in place, payment of goods or services which were acquired abroad and paid by means of credit cards or through web sites, services rendered by non-residents and the purchase of transport services to travel outside Argentina. The PAIS tax is created for a 5-year period of time and the Law grants the EB powers to broaden up the application of this tax.
9. The Law increases to its double, being the new aliquot 12%, the tax levied on withdrawal of cash done by companies from its banking accounts, except for small and medium companies.
10. The progressive decrease of aliquots of the income tax paid by companies set forth under Law 27,430 is suspended until January 1, 2021. The applicable aliquot for the 2020 period will be of 30%.
11. The statistical tax applicable to definitive imports destined to consumptions is set forth in 3% until December 31, 2020.
12. The Law allows the EB to set forth export rights which aliquot shall not exceed 33% calculated on the tax base sum or FOB official price. The Law also determines inferior aliquots for specific goods, services and situations, including hydrocarbons and mining activities which aliquot shall not exceed an 8%. The powers granted to the EB are valid until December 31, 2021.
13. The Law suspends for a 180-day period of time the update of retirement pensions and delegates in the EB the determination of such payments.
14. Sections 94.5 and 206 regarding dissolution of companies due to loss of corporate capital and mandatory reduction of corporate capital are suspended for the term of validity of the Law.

Decree Nº34/2019 – Double Compensation in Case of Dismissal Without Cause

Decree Nº34/2019 (the, “Decree”) issued by the Executive Branch declares labor emergency for a 180 day period of time as of December 13, 2019 and implements the double payment of every compensatory item payable to workers in case of dismissal without cause. The Decree shall not apply to the labor relationships initiated after December 13, 2019.

Decree Nº37/2019 – Increase of Export Tax

Decree Nº37/2019 (the, “Decree”) modifies and in some cases increases the export tax created under Decree Nº793/2018 regarding certain customs tariff positions which are detailed in Decree’s annexes. The Decree also eliminates the limit of 4 Argentine Pesos per US Dollar set forth under Decree Nº793/2018

Resolution Nº4650/2019 – New Dates to Inform About Transactions Between Related Companies

By means of Resolution Nº4650/2019, Tax Enforcement Authority (“AFIP”) modifies Resolution Nº1122/2019, and sets forth that the information to be submitted under such Resolution in connection to transactions with related parties or with subjects located in low or null tax jurisdictions for the fiscal periods closed between December 31, 2018 and June 30, 2019, shall be submitted between March 16 and 20, 2019.

Decree Nº862/2019 – New Income Tax Ordered Text

Decree Nº862/2019 issued by the Executive Branch approves an ordered text on income tax law 2019.

Resolution Nº453/2019 – New Waste Management System

By means of Resolution Nº453/2019, the Secretary of Environment creates the Waste and Others Management Integral System (“GIRO”) and sets forth a 60-day period of time from its implementation for generators, transporters and operators who develop their activities in inter-jurisdictions to register with GIRO.

LATEST NEWS IN THE HYDROCARBON SECTOR

Disposition Nº329/2019 – Oil and Gas Exports

The Subsecretary of Hydrocarbons and Fuels issued Disposition Nº329/2019 which sets forth a new list of the products which exportation shall be subject to registration with the Export Operations Contracts Registry while it excludes from the obligation of registration the export operations which volumes are equal or inferior to 1,000 liters of the products detailed in the Disposition

Disposition Nº334/2019 – Composition of Drilling Muds

Disposition Nº334/2019 (the, “Disposition”) issued by the Subsecretary of Hydrocarbons and Fuels sets forth that gasoil used for the preparation of drilling mud will be excepted from the mix with biodiesel. The Disposition also clarifies that the obligation set forth under Arts. 7 and 8 of Law 26,093 remains valid regarding all other activities performed in the oil and gas fields. Finally, the Disposition determines the application of sanctions for non-compliance events and gasoil traders and manufacturers’ obligation to inform the volume of gasoil sold for purposes of elaborating drilling muds.

Disposition Nº335/2019 – Financial and Asset Solvency

By means of Disposition Nº335/2019 (the, “Disposition”), the Subsecretary of Hydrocarbons and Fuels determined the new and updated parameters to be considered in order for holders of exploration permits, exploitation or transport concessions, and assignees of such permits and concessions, to comply with the requirement of financial solvency provided under the Hydrocarbons Act (17,319). The Disposition abrogates Resolution Nº193/2003.

Disposition Nº336/2019 – New Requirements for Tanks

Disposition Nº336/2019 (the, “Disposition”) issued by the Subsecretary of Hydrocarbons and Fuels sets forth the application of Standard Nº30 of the Inflammable Liquids and Fuels Code of the National Fire Protection Association for the measurement and collection tanks of crude oil of batteries which store crude and condensate oil and gasoline located in areas subject to exploration permits and exploitation concessions (the, “Tanks”).

Additionally, the Disposition brings new regulations to be met by the Tanks, including some related to their location and design.

Disposition Nº337/2019 – New Regulation of Oil Companies Registry

By means of Disposition Nº337/2019 (the, “Disposition”), the Subsecretary of Hydrocarbons and Fuels approves new regulations applicable to the “producers” section of the National Oil Companies Registry and sets forth the new requirements to be complied from now on. The Disposition abrogates Resolution Nº407/2007.

Resolution Nº806 /2019 – Gas Unbalancing

Resolution Nº806/2019 issued by the Secretary of Energy approves the allocation to natural gas producers of the gas unbalancing of gas chargers for the volumes indicated in Annex I of the Resolution, which also allows gas producers included in such annex to invoice the chargers for the volumes of gas referred in said annex at 4.39/USD/MMBTU.

Resolution Nº791/2019 – Deferral of Adjustments of Gas Tariffs

Resolution Nº791/2019 issued by the Secretary of Energy defers to February 1, 2020 the adjustment of tariffs due to the variation of gas price at the entry to the transport system (“PIST”).

Resolution Nº818/2019 – Service Level Indicators Applicable to Gas Licensees

Resolution Nº818/2019 issued by Gas Enforcement Authority (“ENARGAS”) approves the new service level indicators to be met by gas licensees and sets forth that all subjects providing transport or distribution services, under any title, shall comply with the maximum values of polluting gas emissions for new installations contemplated in the Resolution.

Resolution Nº819/2019 – New Quality Specifications for the Transport and Distribution of Natural
Gas and Other Analogue Gases

Resolution Nº818/2019 issued by Gas Enforcement Authority (“ENARGAS”) approves Regulation NAG 602 regarding quality specifications for the transport and distribution of natural gas and other analogue gases which is complementary to the gas quality specifications set forth under the Transport Service License Regulation and Distribution Service License Regulation.

Resolution Nº874/2019 – Mandatory Digital Signature

Resolution Nº874/2019 issued by Gas Enforcement Authority (“ENARGAS”) sets forth that as of April 1, 2020 certain subjects of the gas industry must obtain the digital signature in accordance to Law Nº25,506.

Disposition Nº328/2019 – Penalties for Non-Compliance with LPG Regulations

The Subsecretary of Hydrocarbons and Fuels issued Disposition Nº328/2019, which sets forth new penalties applicable to non-compliance of regulations regarding commercialization of bulked LPG bottled or in tanks or cylinders.

Disposition Nº331/2019 – New Type of Biodisel

By means of Disposition Nº331/2019, the Subsecretary of Hydrocarbons and Fuels authorizes Biodisel CF, which when mixed with gasoil allows a better performance of engines in zones of low temperatures.

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

María Victoria Tiscornia Senior Associate mvtiscornia@bcoabogados.com.ar  +54 11 4326-7777

Leandro Martin Orts Senior Associate lorts@bcoabogados.com.ar +54 11 4326-7777