globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

12 October 2020

Argentina issues guidance on foreign exchange regulations

Over the last few months, the Argentine Central Bank (BCRA) has issued guidance on the foreign exchange regulations issued in September 2019.

This Tax Alert covers the most significant guidance issued by the BCRA.

Communique A 7,106

Communique A 7,106 established that Argentine entities (other than banks) with financial loans granted by non-related foreign entities that have principal payments due from 15 October 2020 to 31 March 2021 must present to the BCRA a refinancing plan of those loans. The refinancing plan must meet the following criteria:

  • The new principal amounts that must be paid from 15 October 2020 to 31 March 2021 must not exceed 40% of the amounts that were originally due within that period.
  • The outstanding principal must be refinanced through a new loan with an average life of no less than two years.

The requirement to refinance the loan does not apply when the grantor of the loan is an international organization, associated agencies of an international organization or other official organizations. The requirement also does not apply to loans in which the principal to be paid each month does not exceed US$1 million.

Communique A 7,094

Communique A 7,094 extended, through 31 October 2020, the requirement for Argentine entities to obtain prior authorization from the BCRA for:

  • Payments of financial loans with foreign related parties
  • Payments of amounts that exceed the original amount due for goods imported since 1 January 2020

Communique A 7,079

Communique A 7,079 established that Argentine entities requiring access to the official foreign exchange market (i.e., purchasing foreign currency) to pay for imported goods or services, or to make any other payment abroad, must file an affidavit stating that in the past 90 days they did not sell bonds against foreign currency or transfer bonds to a foreign broker. They also must commit to not conduct those transactions over the next 90 days.

Communique A 7,042

Communique A 7,042 established that Argentine entities requiring access to the official foreign exchange market to pay for imported goods or services, dividends, commercial interests and principal and interest of financial loans must file an affidavit stating that all their financial assets in foreign currency exceeding US$100k are deposited in Argentine banks (certain exceptions may apply).

Implications

Companies doing business in Argentina and multinational groups interested in the Argentine market should evaluate these foreign exchange regulations and monitor the developments related to the foreign exchange market.

_____________________________________________________________________________________________________________

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 Abogados, Latin American Business Center, Madrid
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Tokyo

ATTACHMENT

Document ID: 2020-6325

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more