Argentina: Foreign exchange and banking regime

In brief

Decree 72/23 contemplates the following tax benefits:

Bonds or securities issued by the Central Bank Of The Argentine Republic (BCRA) until 31 March 2024 inclusive, may be given in payment for the cancellation of tax and customs obligations, plus interest, fines and accessories, payable by the Federal Administration Of Public Revenue (AFIP).


Contents

In Depth

  1. Bonds or securities issued by the BCRA until March 31 2024 inclusive, may be given in payment for the cancellation of tax and customs obligations, plus interest, fines and accessories, payable by the AFIP. The following obligations are excluded from this benefit:
    1. Contributions to the Social Security System.
    2. Contributions destined to the Social Welfare System.
    3. Contributions corresponding to the Mandatory Life Insurance.
    4. Contributions destined to the Labor Risk Insurance Companies.
    5. Tax on Credits and Debits to Bank Accounts and Other Transactions.
    6. Obligations derived from the substitute or joint and several liability for third-party debts or from their performance as withholding and collection agents.
  2. The holders of bonds or securities issued by the BCRA may give them in payment at their technical value calculated at the applicable exchange rate, according to the terms and conditions stipulated by the AFIP jointly with the BCRA.
  3. The computation of bonds or securities to be used as payment in lieu of overdue tax and customs obligations shall be limited to a total value of USD 3.5 billion, to be used according to the following schedule:
    1. A maximum value equivalent to USD 1 billion from 30 April 2025 to 29 April 2026, both dates inclusive.
    2. A maximum value equivalent to USD 1 billion from 30 April 2026 to 29 April 2027, both dates inclusive.
    3. A maximum value equivalent to USD 1.5 billion from 30 April 2027 to 31 October 2027, both dates inclusive.
  4. The subscription in pesos of bonds or securities issued in US dollars by the BCRA, by those who hold debts for imports of goods with customs entry registration and/or import of services effectively rendered shall be subject to the payment of the Tax for an Inclusive and Solidarity Argentina (PAIS) at the following rates:
    1. 0% for the subscription of bonds or securities up to and including 31 January 2024.
    2. 17.5% or 25%, as applicable to the underlying transaction, for the subscription of bonds or securities as from 1 February 2024.
  5. The bonds or securities issued by the BCRA may be freely assigned by its holders.

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