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March 24, 2020
2020-5442

Argentina announces emergency measures to address economic impact of COVID-19

The Argentine Government has implemented emergency measures on tax, social security, customs and labor issues to mitigate the economic impact of the COVID-19 pandemic.

The measures already implemented include the following:

  • The Federal Tax Authority suspended the time limits for responding to the federal tax, social security and customs authorities on certain issues (e.g., time to submit documents related to a tax audit) from 18 March to 31 March 2020; this measure does not include the extension of regular due dates previously established for tax return filings and payments.
  • Federal tax authority offices are limiting on-site attention to taxpayers until 31 March 2020 and are rescheduling appointments; other Government agencies (e.g., Inspection Board of Legal entities) are limiting on-site attention.
  • Workers over the age of 60 year (with certain exceptions), pregnant workers and workers included in certain health groups at-risk are no longer required to go to their workplaces.
  • The Government exempted medical supplies and vaccines from import duties.

The Ministries of Treasury and Production announced the following set of measures, which are expected to be implemented shortly:

  • Social Security tax exemption for certain companies engaged in activities particularly affected by the COVID-19 pandemic (e.g., tourism, entertainment industries, restaurants, hotels and passenger transport activities), with the possibility of extending the exemption to companies dealing with logistic or supply-chain issues due to the pandemic
  • Extension of the Program of Productive Recovering (in Spanish, “Programa de Recuperación Productiva” or REPRO) through which the Government subsidizes a portion of the salaries of private-sector employees
  • Financing of working capital at preferred interest rates for food, personal care, cleaning, medical supplies and equipment for teleworking industries
  • Renewal of the “Ahora 12” plan for final consumers to buy local products in fixed monthly installments and extension of the plan to purchases on-line, especially from local small and medium-sized enterprises
  • Restrictions on exports of medical equipment and related inputs, which are essential in fighting the pandemic
  • Launch of a program to promote the production of medical equipment and related inputs
  • Acceleration of export drawbacks
  • Increase in unemployment insurance programs
  • Extraordinary payment for Universal Child Allowance (in Spanish, Asignación Universal por Hijo or AUH) beneficiaries
  • Special bonus for retired people earning the minimum pension (i.e., lowest amount paid by the Government)

For additional information with respect to this Alert, please contact the following:

Pistrelli, Henry Martin & Asociados S.R.L., Buenos Aires
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

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