June 13, 2022
Argentine Central Bank exempts certain individuals and legal entities from foreign exchange controls on exports of services
The communique exempts individuals and legal entities from the requirement to settle through the official foreign exchange market the proceeds from exports of certain services. Companies doing business in Argentina through exports of services should carefully analyze the requirements to determine if they are covered by the exemption.
On 2 June 2022, the Argentine Central Bank (BCRA) issued Communique A 7,518 (Communique), which exempts individuals and legal entities that perform certain activities from settling through the official foreign exchange market a portion of the proceeds from exports of services to the extent certain requirements are met.
On 1 September 2019, the Argentine Government published in the Official Gazette Decree 609/2019 (the Decree), which implemented foreign exchange regulations. The Decree requires individuals and legal entities to convert into Argentine pesos (ARS) in the local financial system, the value of goods and services exported, in accordance with the 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 exports of goods and services, imports of goods and services, foreign assets, nonresident operations, financial debt, debts between residents, profits and dividends, and information systems. For more information, see EY 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 2 January 2020, and Argentina issues guidance on foreign exchange regulations, dated 12 October 2020.
Under those rules, the proceeds derived from exports of services must be entered and settled through the official foreign exchange market within five business days from collection.
Communique A 7,518
Under the Communique, individuals and legal entities that export certain services (e.g., IT services, telecommunications services, charges for the use of intellectual property) are exempt from settling a portion of those proceeds (i.e., converting those funds into ARS) through the official foreign exchange market.
The Communique clarifies that the funds collected from these exports must be credited in foreign currency accounts held in local financial institutions (i.e., the funds must be entered into Argentina but can be kept in foreign currency).
For individuals, up to US$12,000 per calendar year is exempt from the settlement through the foreign exchange market requirement. The exemption will apply, provided they file a sworn statement with the local financial institution involved in the transaction, stating that they did not use the blue-chip swap mechanism with public debt1 for the previous 90 days and commit not to use it for the next 90 days.
Legal entities exporting those services will be exempt to the extent they obtain a “Certification of increase in the collection of funds from export of services in 2022” (the Certification) from a local financial institution.
To obtain the Certification, the legal entity must meet the following requirements:
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