Relevant news:

• Exchange control and purchase of foreign currency
• Procedure for Tax Benefits for Mining Activities
• Price increase on fuel and gasoil
• New Value of the Annual Canon of Neuquén

LEGISLATION

Central Bank Communications Nº6814, 6815, 6818 and 6823 – Foreign Exchange Control

The following are the main regulations introduced by the Argentine Central Bank (“BCRA”) to the current foreign exchange control system:

(i) Communication Nº6814 tends to facilitate company’s re-financing by excepting from BCRA’s prior consent the access to foreign exchange market for the pre-payment of debts with foreign creditors with more than 3 business days in advance, provided that certain requirements are met. The Communication also allows (a) the access to the foreign exchange market for the payment of primes, constitution of guarantees and cancellations regarding hedging contracts of interest rate for the commitments undertaken with foreign creditors and duly informed to the BCRA and (b) subject to certain requirements, the possibility of netting foreign trade operations by excepting the obligation to settle the proceeds obtained from exports.

(ii) Communication Nº6815 brings new regulations which restrict local individuals’ access to foreign exchange market. In particular, the Communication reduces from USD 10,000 to USD200 and USD100 respectively (depending whether the transaction is made by debit to a banking account or in cash) the monthly permitted amount for the acquisition of foreign currency. In case of non-residents, the allowed amount is of USD100 per month. The Communication also sets forth a 90-day period to prove the effective import of the goods in case of advanced payment of imports with non-related suppliers and the need to obtain BCRA’s prior consent for paying in advance imports to related companies. The Communication also creates a new informative regime applicable to financial institutions and foreign exchange operators under which they are requested to inform the BCRA with 2 business days in advance any operation exceeding USD2,000,000 to be conducted within the following 3 business days. To such end, the Communication instructs clients to inform such operations to the entity with due notice in order to allow such entity to comply with the informative regime.

(iii)Communication Nº6818 sets forth a new set of regulations applicable to the payment of imports and of purchase of goods abroad effective as from November, 1st. Communication Nº6818’s mains aspects are the following: (a) the regulation sets forth that the payment of imports and other purchases of goods abroad as well as the commercial debt incurred by importer to such purposes have access to the foreign exchange market subject to certain requirements set forth in the applicable regulations; (b) distinguishes between payment of imports which have or not customs entry registry of the imported good and sets forth for each case the requirements to be met in order to access the foreign exchange market for their payment; (c) regulates the commercial debt and distinguishes it from the financial debt; (d) creates a tracking system named “SEPAIMPO” in order to keep track of payment of imports and the effective entry to Argentina of the imported good; (d) allows to pay directly to the supplier from abroad with the funds obtained from a commercial debt without the obligation of previously settling in the foreign exchange market.

(iv) Communication Nº6823 sets forth a limit of USD50 per transaction for the drawing of money abroad by means of credit cards and implements the obligation of financial institutions and local credit cards issuers to obtain BCRA’s previous authorization to access the foreign exchange market in order to make payments abroad for the use of credit, debit and prepayment cards issued in Argentina as from November 1st, 2019, when such payments were directly or indirectly originated in the use of international payment networks for the specific operations detailed in the Communication, including the transfer of funds to accounts of payment services suppliers or to investment accounts of investment administrators located abroad and the performance of exchange operations abroad, among other transactions.

Disposition Nº75/2019 – Antitrust National Registry

Disposition Nº75/2019 issued by the Antitrust National Commission creates and regulates the organization and functioning of the Antitrust National Registry under which all transactions qualifying as an “economic concentration” under the antitrust regulations shall be registered.

Decree Nº 708/2019 – Knowledge Based Economy Law

Decree Nº708/2019 issued by the Executive Branch (the “Decree”) regulates Law Nº27,506 regarding the regimen of Promotion of the Knowledge Based Economy (the, “Regime”). Among other aspects, the Decree regulates the manner in which the term “main activity” shall be defined, since when the interested parties must comply with the requirements set forth under the legislation to become eligible for the benefits under the Regime and certain aspects of the tax benefits including the fiscal credit bond. Additionally, the Secretary of Entrepreneurs and Small and Medium Companies issued Resolution Nº449/2019 which determines the scope of the activities and items included under the Regime, the requirements and procedure for registering before the Beneficiaries of the Promotion Regime of Knowledge Based Economy National Registry and the maintenance of such registration, the method of payment of the fee and the contribution to the “FONDCE”, among other aspects.

Resolution Nº89/2019 – New Procedure for Tax Benefits for Mining Activities

Resolution Nº89/2019 issued by the Secretary of Mining Policies abrogates all previous regulations regarding the application, obtainment and use of the tax benefits created under Article 21 of Law 24,196 of Mining Investments regarding the exemption of import rights on capital assets destined to the mining industry and sets forth a new set of regulations to such end.

Resolution Nº4616/2019 – Extension of Tax Payment Plan for Small and Medium

By means of Resolution 4616/2019, Tax Enforcement Authority (“AFIP”) extends until November 30th, 2019 the payment plan applicable for small and medium companies and autonomous workers for debts arising from tax and social security obligations created under Resolution Nº4557/2019.

LATEST NEWS IN THE HYDROCARBON SECTOR

Disposition Nº254/2019 – Compensation to Oil Companies and Provinces

Disposition Nº 254 issued by the Subsecretary of Hydrocarbons and Fuels approves the procedure for the transfer of the funds payable to oil and biofuels production companies and oil provinces under Resolution Nº552/2019 issued by the Secretary of Energy.

Resolution Nº688/2019 – Fuel Price Increase

By means of Resolution Nº688/2019 the Secretary of Energy allows as from November 1st, 2019 and during the validity of Decree Nº601/2019, a 5% increase on the prices of fuel and gasoil commercialized by refining companies and minor and major retailers which final destination is supply to gas stations. The Resolution also sets forth a new parity of ARS 51.77 p/dollar for deliveries of crude oil done in the local market during the validity of Decree Nº601/2019.

Joint Resolution Nº2/2019 – Incentives for the Non-Conventional Fields

Joint Resolution Nº2/2019 (the, “Resolution”) issued by the Ministry of Production and Labor and the Secretary of Energy sets forth that the capital goods to be applied to investments in the production of hydrocarbons obtained from non-conventional reservoirs that qualify under the custom’s tariff positions detailed in the Resolution, are included under Art. 1 a) of Decree Nº361/2019, which sets forth in 0% the sadistic rate for the import of such goods.

Disposition Nº284/2019 – New Gas Export Procedure

Disposition Nº284/2019 issued by the Subsecretary of Hydrocarbons and Fuels approves the operating procedure for the export of natural gas which shall remain valid until September 30th, 2021.

Disposition Nº283/2019 – Fuel Stations Registry for Electric Recharge in Fuel Stations

By means of Disposition Nº283/2019 issued by the Subsecretary of Hydrocarbons and Fuels any natural person or company authorized to supply the service of electric recharge in fuel stations shall register with the Registry of Liquid Fuels and NCG Stations.

Decree Nº2032/2019 – New Value of the Annual Canon of Neuquén

By means of Decree Nº 2032/2019, the Executive Branch of the Province of Neuquén fixes the value of the annual exploratory and exploitation canon to be paid by owners of exploration permits and exploitation concessions located within the Province, as of January 1st 2020.

Resolution Nº649/2019 – Advance Payment of the Control and Audit Fee

Resolution Nº649/2019 issued by Gas Enforcement Authority (“ENARGAS”) sets forth the amount of the final advance payment of the “Control and Audit Fee”.

Disposition Nº388/2019 – New Method of Calculation of Water Canon in Neuquén

Disposition Nº388/2019 issued by the Subsecretary of Hydric Resources of Neuquén modifies the methodology for calculating the canon payable for the use and exploitation of public waters for industrial purposes.

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