Relevant news:

• Exchange control and purchase of foreign currency
• Modification to compensation for work accidents payable by labor risk insurance companies.
• Minimum wage and bonus for private sector workers
• Deferral of increase of liquid oil Tax

LEGISLATION

Central Bank Communications Nº6780, 6796, 6799 – Foreign Exchange Control

The Central Bank issued Communications Nº6780, Nº6796 and Nº6799 in order to clarify and adequate some aspects of previous Communication Nº6770 which implemented the recent foreign exchange control system. In such regard, Communication Nº6780 includes, among others, the following main aspects:

1. modifies some parameters applicable to the obligations of settling foreign currency obtained from exports;
2. the obligation to settle the sums obtained in foreign currency due to payments received from the sale of “non-financial nonproduced assets”; and
3. the obligation for natural people to sign a sworn statement at the moment of acquiring foreign currency (within authorized limits) stating that the funds will not be destined to the acquisition of securities within the following 5 days of the acquisition of the foreign currency. Communication Nº6796 regulates the acquisition of foreign currency by residents in order to guarantee the payment of financial debts with foreign non-related creditors and the possibility of acquiring foreign currency destined to the payment of financial debts with foreign creditors or local debts with access to the foreign exchange market until 5 days before the date authorized to such effect by current regulations.

Finally, Communication Nº6799 sets forth:

1. the obligation for natural people acquiring securities by liquidation in foreign currency to hold said securities for a minimum of 5 days,
2. the obligation for natural people transferring foreign currency to their own bank accounts abroad to submit a sworn statement providing that local securities in foreign currency have not been sold in the last 5 business days,
3. a modification to Communication Nº 6776 providing no restrictions to the transfer of foreign currency by natural people to their own bank accounts abroad, and
4. obtainment of foreign currency by natural people for transfers abroad (within the authorized limits) for the constitution of foreign assets shall be only destined to bank accounts owned by the acquirer.

Decree Nº661/2019 – Export Refunds

Decree Nº661/2019 issued by the Executive Branch sets forth that the payment of refunds for exports shall be subject to the previous settling of the foreign currency obtained in the exchange market.

Decree Nº669/2019 – Modification to the Compensation for Work Accidents

Decree Nº669/2019 issued by the Executive Branch modifies the way in which the compensation to be paid by labor risk insurers companies for employee´s work related accidents and injuries is calculated, by modifying the index to be applied for the actualization of the “base income” used to calculate the compensation. Said modification implies a reduction of compensation for workers.

Decree Nº665/2019 – Bonus for Private Sector Workers

Decree Nº665/2019 issued by the Executive Branch grants a ARS5,000 bonus for workers of the private sector to be paid by their employees on October 2019 or in the manner and time agreed upon with the unions. The sum of the bonus shall be considered on account of subsequent wages increases.

Resolution Nº6/2019 – New Value of the Minimum Wage

Resolution Nº6/2019 issued by the National Council of Employment, Productivity and Minimum Wage, approved by Decree Nº610/2019, sets forth the following new values for the minimum wage: (i) ARS 14,125 payable as of August 1st, 2019; (ii) ARS 15,625 payable as of September 1st, 2019 and; (iii) ARS 16,875 payable as of October 1ST. 2019.

Resolution Nº185/2019 – Modification to the National Purchase Regime

Resolution Nº185/2019 issued by the Ministry of Production introduces some modifications to the National Purchase Regime (the “NPR”) created under Law 27,437, including new forms to be submitted by the companies included in the NPR and the time and opportunity to inform the authority about the execution of the agreement with the designated supplier, among others.

Resolution Nº337/2019 – New Guidelines for Environmental Impact Assessment

Resolution Nº337/2019 issued by the Secretary of Environment contains the guidelines applicable to the elaboration of the environmental impact assessment studies and the strategic environmental assessment.

Resolution Nº4579/2019 – Abrogation of Differential Treatment of Income Tax

By means of Resolution Nº4579/2019 and effective as from October 1st, 2019, Tax Enforcement Authority (“AFIP”) abrogates the differential aliquot of income tax applicable to definitive imports destined to consumption which values were inferior to the criteria values set forth by the applicable regulations.

Resolution Nº4581/2019 – Regulation of VAT Return for Investments

General Resolution Nº4581/2019 issued by Tax Enforcement Authority (“AFIP”), regulates the procedure applicable to VAT credit returns for investments in fixed assets.

Resolution Nº4595/2019 – New Tax Withholding Electronic System

Resolution Nº4595/2019 issued by Tax Enforcement Authority (“AFIP”) defers to December 1st, 2019 the implementation of the Tax Withholding Electronic System for VAT.

Resolution Nº589/2019 – New Regulation for Credit and Debit Notes

Resolution Nº589/2019 issued by Tax Enforcement Authority (“AFIP”) defers to February 1st, 2020 the application of Resolution Nº4540 regarding credit and debit notes.

Resolution Nº25/2019 – Information of Commercial Authorization of Electric Power Generation Projects

Resolution Nº25/2019 issued by the Secretary of Renewable Resources and Electric Market calls all generators which entered into the regime created by Resolution Nº287/2017 regarding generation of electric power from thermic sources, to inform in a 30-day period their project’s date of commercial authorization.

Disposition Nº103/2019 – New Public Tender for Five Photovoltaic and Eolic Plants

Disposition Nº103/2019 issued by the Secretary of Renewable Resources and Electric Market authorizes the calling for the National Public Tender for the design, construction and operation of five photovoltaic and eolic plants with accumulation integrated to a mini grid for the estimated amount of USD 7,999,000.

LATEST NEWS IN THE HYDROCARBON SECTOR

Decree Nº607/2019 – Deferral of Increase of Liquid Oil Taxes

Decree Nº607/2019 issued by the Executive Branch defers to November 30th, 2019 the increase of liquid oil taxes stipulated for September, 2019.

Resolution Nº552/2019 – Compensation for the Oil and Gas Sector

Resolution Nº552/2019 issued by the Secretary of Energy sets forth a compensation for oil and gas companies of ARS116,10 per barrel delivered in the local market during September 2019. Such amount will be payable in an 88% to companies producing oil and gas and 12% to the provinces in which such production takes place.

The granting of the compensation is subject to the waiver of any claim or action against the government under Decrees Nº566 and 601/2019.

Resolution Nº557/2019 – New Parity Price for Oil and Gas

Resolution Nº557/2019 (the, “Resolution”) issued by the Secretary of Energy sets forth a 4% increase on the prices established by Decree Nº601/2019 for oil 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 49.30 p/dollar and a new BRENT reference price of USD 59 per barrel for deliveries of crude oil done in the local market during validity of Decree Nº601/2019.

Resolution Nº521/2019 – Deferral of Increase of Gas Tariffs

Resolution Nº521/2019 issued by the Secretary of Energy defers to January 2020 the increase of gas tariffs scheduled for October 2019.

Resolution Nº558/2019 – Deferral of the implementation of Changes by Refineries

Resolution Nº558/2019 issued by the Secretary of Energy postpones until year 2024 refineries’ obligation to implement the limit of sulphur in oil and gasoil stablished under Resolution Nº5/2016. Resolution Nº576/2019 modified the Annexes of Resolution 558/2019 containing the authorized composition of oil and gasoil.

Resolution Nº571/2019 – New Regulation for the Transportation of Crude Oil

By means of Resolution Nº571/2019, the Secretary of Energy implemented a new set of regulations applicable to the transportation of crude oil by means of ducts and through sea and fluvial terminals. The Resolution also creates the Registry of Transportation Capacity and Storage of Liquid Hydrocarbons under which companies holders of a transportation concession shall submit certain information before March 31st of each year.

Decree Nº2043/2019 – New Bidding Process in Mendoza

By means of Provincial Decree Nº2043/2019 the Province of Mendoza launched the Public National and International Bidding Process for the award of a hydrocarbons exploitation concession over the “Chañares Herrados” Block; under the terms and conditions set forth in the bidding documents also approved by said Decree.

Resolution Nº459/2019 – Project of New Regulation for Storage of Natural Gas

By means of Resolution Nº590/2019 Gas Enforcement Authority (“ENARGAS”) extends for another 20 days the consult procedure initiated under Resolution Nº464/2019.

Disposition Nº31/2019 – Procedure for Obtaining Tax Benefits in the Import of Certain Goods for the Oil and Gas Industry

Disposition Nº31/2019 issued by the Sub-secretary of Trade Facilitation sets forth the procedure for the obtainment of the tax benefits granted under Decree Nº555/2019 for the definitive import of certain goods destined to the oil and gas industry and to such ends creates a certificate called “CIBUH”.