Relevant news:

• Modification of interest rate applicable to tax debts
• Minimum wage
• Extensions to Renovar Round 2 and 3.
• Regulations related to import and export of chemical precursors
• Financing of hydrocarbons transport expansion projects
• Modifications to hydrocarbons exploration permit Off Shore Round 1 public bidding

LEGISLATION

Resolution Nº4419/2019 – Imports of Goods between Related Parties

Resolution Nº4419/2019 issued by the Tax Authority sets forth the conditions and procedures applicable for the registration and process of importation of goods destined for consumption under contracts entered into by related parties with the intervention of third party operators, containing provisions of price adjustment.

Resolution Nº1/2019 – National Tax Multilateral Agreement

Resolution Nº1/2019 issued by the Arbitration Commission as the enforcement authority of the National Tax Multilateral Agreement (1977) updates the order of the general resolutions contained in the General Resolution Nº1/2018 about taxation signed by Argentinean provinces.

Resolution Nº50/2019 – Interest Rates of Tax Claims

Resolution Nº50/2019 issued by the Ministry of Treasury modifies the interest rates to be applied to sums resulting of lack of payment of taxes and judicial claims brought up by the authority in order to collect credits or penalties.

Resolution Nº118/2019 – Financial Statements of Insurance Companies

Resolution Nº118/2019 issued by the Superintendence of Insurance Companies sets forth that insurance and reinsurance companies’ financial statements (whether complete or intermediate) must be submitted in constant currency and the regulations to be used in order to re-express the financial statements. The Resolution shall apply to the financial statements prepared to June 2019 and the following ones while it contains specific dispositions for the financial statements to be prepared before such date.

Resolution Nº782/2019 – New Date for Filing Financial Statements with CNV

General Resolution Nº782/2019 issued by the Security Exchange Commission extends up to March 6th, 2019 the term for submitting the financial statements for the intermediate periods closed on December 31st, 2018.

Decree Nº128/2019 – Reduction of Employer’s Charges

By means of Decree Nº128/2019 issued by the Executive Branch, the government decided to increase the nontaxable minimum amount of employer’s charges for the activities listed in the Decree, which include mainly agricultural activities.

Resolution Nº 1/2019 – Minimum Wage Increase

Resolution Nº1/2019 issued by the Labor, Productivity and Minimum Wage Council resolves to anticipate the application of the minimum wage planned for June 2019 and make it applicable as of March 1st, 2019. Therefore, as from March 1st, 2019 the applicable minimum wage shall be of ARS 12,500.

Resolution Nº 52/2019 – Renovar Round 2

Resolution Nº52/2019 issued by the Secretary of Energy allows owners of renewable electric energy generation projects awarded with the execution of supply contracts under the Renovar 2 bidding process (Resolutions Nº473/2017 and 488/2017) to request an extension of the dates compromised for the progress of works provided they accept the conditions set forth under the Resolution to such end. The extension shall be required up to April 30th, 2019.

Resolution Nº4421/2019 – Chemical Precursors

Resolution Nº4421/2019 issued by the Tax Authority substitutes Annex D of the Resolution Nº2020/1993 regarding regulations applicable to the export or import of chemical precursors and products whether essential, specific or fit for the production or elaboration of drugs.

Resolutions Nº71/2019 and Resolution Nº75/2019 – Mercury

Resolution Nº71/2019 issued by the Secretary of Environment sets forth the obligation to obtain enforcement authority’s previous consent to export or import mercury, while Resolution Nº75/2019 prohibits as from January 1st, 2020 the production, import and export of the products containing mercury listed in such Resolution.

LATEST NEWS IN THE HYDROCARBON SECTOR

Decree Nº115/2019 – Hydrocarbons Transport Concessions

Decree Nº 115/2019 issued by the Executive Branch (the, “Decree”) modifies Decree Nº 44/1991 (which regulates transport of hydrocarbons) and provides regarding capacity expansion projects, that the transport concessionaire of liquid hydrocarbons may assure firm transport capacity in favor of any charger by means of capacity reserve agreements, which terms and price may be freely negotiated between them parties. The capacity not hired and the one hired but not used shall be subject to the rates approved by the enforcement authority. The Decree also sets forth the following: (i) the rates approved by the enforcing authority applicable to the producers for the hydrocarbons transportation service shall be adjusted every five years, or earlier in case any base indicator taken into consideration for the calculation of the rates suffers any significant variation; (ii) available capacity shall be declared on an annual basis by the transport concessionaire in accordance to the procedure to be determined by the enforcement authority; (iii) clarifies Law 17.319 regarding the term of the transportation concessions and its extensions; (iv) in case of an assignment of a transportation concession under Law Nº 17,319, the extinction of the exploitation concession of the assignor shall not affect the validity of the assigned transportation concession; (v) the enforcement authority shall issue the procedure for the expansions of capacity of existing ducts and the terms of conditions of the bidding process to be called considering the proposals submitted by the interested persons in obtaining a transport concession under Article 46 of Law 17,319.

Resolution Nº28/2019 – New Dates for Off Shore Round 1

Resolution Nº28/2019 issued by the Secretary of Energy modifies the dates corresponding to the milestones included in the international public tender for the granting of exploration permits on the off-shore national areas located in Argentina Norte, Austral Marina and Malvinas Oeste, including the date for the opening of the presentations of background information (scheduled now for March 8th, 2019) and of the opening of the offers (scheduled now for April 16th, 2019).

Resolution Nº55/2019 – Modification to the Off Shore Round 1 Tender

Resolution Nº55/2019 of the Secretary of Energy clarifies certain aspects of the tender documents of the Off-Shore Bidding Process Round 1. The main aspects of the Resolution relate to the issuance of the required technical/financial guaranties allowing bidders to submit a guaranty issued by a direct or indirect controller company or by companies subject to common control and the jurisdiction applying to disputes arising from the bidding process, providing that any controversy shall be governed by Law Nº19,549 of Administrative Procedure (Resolution 65 previously submitted such controversies to an arbitration process).

Resolution Nº54/2019 – Compensation Payments to Gas Producers

Resolution Nº54/2019 issued by the Secretary of Energy sets forth the only valid way to obtain payment for gas producers registered under the Incentive Programs (Resolutions 1/2013, 60/2013 and 74/2016) in accordance with Law Nº27,467.

Resolutions Nº6/2019 and Nº9/2019– Mining Investments Regime

Resolution Nº6/2019 issued by the Secretary of Mining Policy approves the procedures and conditions regarding the benefits related to the income tax for mining investments set forth under Law Nº24,169 of mining Investments. Among other aspects, the Resolution Nº9/2019 sets forth the obligation to submit evidence of payment of the amounts provided under Decree Nº2,686/93 when requesting the sale of mines or mining rights before the fulfillment of the five-year period set forth under Art. 14 of Law Nº24,169. Resolution Nº9/2019 also approves the procedure to obtain the fiscal stability benefit set forth under Art. 8 of Law Nº24,169.
On the other hand, Resolution Nº4428/2019 jointly issued by the Secretary of Mining Policy and Tax Authority (AFIP) implements the procedure to obtain the reimbursement of sums corresponding to the fiscal stability granted under the Mining Investment Regime.

Resolution Nº72/2019 – Gas Rates Adjustment

Resolution Nº72/2019 issued by the gas enforcement authority (ENARGAS) approves the methodology for the adjustment of rates based on the price of gas and the general procedure for the calculation of the accumulated differences.

Resolution Nº90/2019 – Modification of the Gas Distribution Regime

By means of Resolution Nº90/2019, the gas enforcement authority (ENARGAS) called all interested parties to participate in the modification process of the gas distribution regime approved by Resolution I-4313/17.

Gas Export Authorizations

• By means of Resolution Nº 30/2019, the Secretary of Energy granted Energy Consulting Services S.A an authorization to export gas to Chile interruptible, from fields located in the Neuquina basin to Engie Energía Chile S.A. for a maximum volume of 100,000,000 m³/day up to May 1st 2019 or the export of an amount equivalent to the daily authorized amount multiplied by the amount of days of the authorization, what occurs first.
• By means of Resolution Nº 41/2019, the Secretary of Energy granted Total Austral Sociedad Anónima Suc. Argentina an authorization to export gas to Chile interruptible, from fields located in the Neuquina basin to GaaValpo SpA for a maximum volume of 500,000,000 m³/day up to May 1st 2020 or the export of an amount equivalent to the daily authorized amount multiplied by the amount of days of the authorization, what occurs first.

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