Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

September 7, 2021
2021-5923

Argentine Central Bank issues new guidance for entities with new financial debt to access the official foreign-exchange market

The communique allows certain entities to access the official foreign-exchange market without the prior authorization of the Argentine Central Bank.

On 26 August 2021, the Argentine Central Bank (BCRA) issued Communique A 7,348 (Communique), which exempts entities with new financial debt and a certificate issued by the financial institution with which they have entered and settled the funds of the new financial debt from requesting the BCRA’s approval to access the official foreign-exchange market.

Background

On 1 September 2019, the Argentine Government published in the Official Gazette Decree 609/2019 (the Decree), which implemented foreign-exchange regulations. The Decree established the obligation to convert into Argentine pesos, in the local financial system, the value of goods and services exported, in accordance with conditions and terms to be established by the BCRA.

On the same date, the BCRA issued Communique A 6,770, which established various rules for imports and exports of goods and services, foreign assets, nonresident operations, financial debt, debts between residents, and profits and dividends. For more information, see EY Global Tax Alerts, Argentina implements foreign exchange control regulations, dated 4 September 2019, Argentine Central Bank issues consolidated text of foreign-exchange regulations containing some definitions and clarifications, dated 3 January 2020, Argentina issues guidance on foreign exchange regulations, dated 12 October 2020, and Argentine Central Bank issues new guidance for certain entities to access to the official foreign exchange market, dated 16 June 2021.

Communique A 7,348

Under the Communique, entities are not required to obtain the BCRA’s prior authorization to access the foreign-exchange market to pay for imports of goods and services outstanding as of 30 June 2021, if they (1) enter the foreign-exchange market, (2) settle new financial debt, and (3) have a certificate. This provision also applies to payments to related parties for imports of goods and services.

To obtain a certificate, entities must satisfy the following requirements:

  • The new financial debt must have an average term of no less than two years.
  • The principal of the debt must not mature until three months after the settlement in the foreign-exchange market.
  • Entities must submit a sworn statement, indicating that they have not entered and settled new financial debt in the foreign-exchange market and obtained a Certificate for an amount exceeding the equivalent of US$5 million, including the amount of the Certificate requested.

The Communique clarifies that the Certificate must not exceed the amount of the financial debt entered and settled in the foreign-exchange market from 27 August 2021 and onwards.

Under the Communique, entities are not required to obtain the BCRA’s prior authorization to access the foreign-exchange market to pay for imports of goods and services outstanding as of 30 June 2021 if they (1) enter the foreign-exchange market, (2) settle new financial debt, and (3) have a certificate.

_________________________________________

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, Japan & Asia Pacific

 
 

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